Understanding mortgages
Learn the basics so you can choose the mortgage that's right for you. Get pre-approved on AccèsD if you're a member to lock in your rate and see how much you can borrow.
Not a member? Schedule a call with the mortgage financing team. to make an appointment for pre-approval.
What's a mortgage?
A mortgage is a loan you take out to buy a home. You repay it over several years and the amount you borrow is called the principal. You pay interest, which is calculated using a certain rate
There are different kinds of mortgages. We can help you choose the one that's best for you.
Features
Learn the basics so you can make the right choice.
Select the feature you want or scroll down to find out more.
Open and closed mortgages
With an open mortgage, you can increase your payments and pay it off without limit or penalties. But, you might be subject to penalties if you receive certain promotions and prepay your mortgage.
The interest rate is usually higher on open mortgages than on closed mortgages.
With a closed mortgage, you can pay your mortgage in part or in full before the term ends, but you'll have to pay a prepayment charge. However, you may increase the payments (up to double) indicated in your original agreement and pay up to 15% of the initial mortgage amount each year without any prepayment charges.
Examples
- If your initial mortgage payments are $900 a month, you can double them and pay $1,800 until the end of your term.
- If your initial mortgage is $500,000, you can pay up to $75,000 each year on top of your regular payments. However, you can’t transfer this right to another year and pay $150,000 in a lump sum.
Fixed, variable and adjustable interest rates
Fixed rate: Interest rate remains the same until the end of the term
Variable rate: Interest rate fluctuates with our prime rate
Annually adjustable rate (Yearly Rate Resetter): Interest rate remains fixed for 12 months and is revised each year based on the 1 year closed fixed-rate, minus a spread.
Term
The term is the duration of your loan agreement. The conditions of your mortgage apply during the whole term. We offer terms from 6 months to 10 years, depending on the rate.
At the end of the term, you either pay the remaining balance in full or renew your mortgage. If you renew it, you may choose new conditions to suit your circumstances.
Amortization
The amortization period is the length of time it takes to pay off your mortgage in full. The standard period is usually 25 years but may be up to 30 years under certain conditions. A longer amortization period means your payments will be lower but you'll pay more interest.
Mortgage payments
Your mortgage payments are the scheduled amounts you pay your caisse. They reduce the interest first, then the principal. They also apply to your Desjardins loan insurance, if you chose to take it.
With a fixed-rate mortgage, your payments stay fixed until the end of the term.
With a variable-rate mortgage, your payments stay fixed until the end of the term. But, the portions of your payments that pay the interest and principal change with the rate.
- If the rate increases, you'll pay more interest and less on the principal. The outstanding balance will be higher than expected at the end of the term.
- If the rate decreases, you'll pay less interest and more on the principal, so you’ll pay off your mortgage more quickly. The outstanding balance will be lower than expected at the end of the term.
With an adjustable-rate mortgage, your rate is revised annually. Payments remain equal for 12 months and are then revised on the anniversary of the mortgage.
Payment frequency
When you apply for a mortgage, you choose how often you want to make payments. You might choose to sync your payments with your salary to keep things simple.
Frequency options:
- Once a month
- Every 2 weeks
- Once a week
Good to know
If you want to pay down your mortgage faster and pay less interest, you can make accelerated payments weekly or every 2 weeks. The amount of your payments will be a little higher but you'll be making the equivalent of one extra monthly payment each year, which will reduce your amortization.
Example
Let’s say you take out a $300,000 mortgage with a $75,000 down payment. Your rate is fixed at 5.29%
Since you want to make weekly payments, you have 2 options:
- $413.47 a week
- $448.67 (accelerated payments) weekly
By choosing weekly accelerated payments, you’ll reduce your amortization by 3.7 years and save $40,737.25.
Our special-rate mortgages
4-year closed fixed-rate mortgage3
4.69%
Rate fluctuation
None, the rate stays the same throughout the term.
Mortgage payments
Equal until the end of the term
Prepayment
- Option to prepay up to 15% of the initial mortgage amount each year without prepayment charges. If you don't make prepayments, you can't transfer them to the next year.
- Option to increase the payments (up to double) indicated in your original agreement without any prepayment charges.
Choose this one if you:
- Prefer low risk and don’t want your interest rate to change
- Don’t want your budget to change
- Want your payments to be regular so you can focus on other projects
- Plan to keep your property for at least 4 years
5-year closed fixed-rate mortgage3
4.69%
Rate fluctuation
None, the rate stays the same throughout the term.
Mortgage payments
Equal until the end of the term
Prepayment
- Option to prepay up to 15% of the initial mortgage amount each year without prepayment charges. If you don't make prepayments, you can't transfer them to the next year.
- Option to increase the payments (up to double) indicated in your original agreement without any prepayment charges.
Choose this one if you:
- Prefer low risk and don’t want your interest rate to change
- Don’t want your budget to change
- Want your payments to be regular so you can focus on other projects
- Plan to keep your property for at least 5 years
5-year closed reduced variable rate mortgage3
4.95%
Rate fluctuation
Your rate is based on the Desjardins prime rate plus or minus a spread guaranteed for the term. Your rate may increase or decrease with each change in the Desjardins prime rate.
You can convert your protected variable rate to a fixed rate anytime without any prepayment charges and under certain conditions.
Examples
Guaranteed rate spread: -0.70%
Fluctuation 1
Prime rate: 6.75%
Personalized rate: 6.05%
Fluctuation 2
Prime rate: 6.95%
Personalized rate: 6.25%
Term
5 years
Mortgage payments
Equal until the end of the term
Prepayment
- Option to prepay up to 15% of the initial mortgage amount each year without prepayment charges. If you don't make prepayments, you can't transfer them to the next year.
- Option to increase the payments (up to double) indicated in your original agreement without any prepayment charges.
Choose this one if you:
- Are comfortable with significant rate fluctuations and have a flexible budget
- Have advanced financial knowledge
- Want to pay as little interest and as much of your principle as possible when rates drop
- Plan to keep your property for at least 5 years
Manage your mortgage online
Log in to AccèsD or go to the Home section of the Desjardins mobile services app for all your home-related needs.
- Get advice and tools to help you buy your first home
- See details about your mortgage: balance, interest rate, term, upcoming payments
- Make a prepayment
- Renew your mortgage
Download the Desjardins mobile services app
Frequently Asked Questions
What’s the difference between fixed and variable mortgage rates?
Choosing between a fixed and variable rate will depend on your situation, budget and tolerance to rate fluctuations.
A fixed rate is recommended if you don't want your budget to change.
A variable rate might be for you if you have good financial knowledge, want to reduce your interest costs and don't mind rate fluctuations.
Contact us to find out which option is best for you.
How do I qualify for a mortgage?
We take several things into consideration when you apply for a mortgage:
- Annual income before taxes
- Monthly home expenses like heating, taxes and other recurring costs
- Debts such as outstanding credit card balances, car loans and personal loans
- Down payment
We also use a mortgage stress test to evaluate your capacity to pay your mortgage if interest rates rise. We simulate your payments using a fictional interest rate that's higher than the one in effect.
What documents do I need to apply for a mortgage?
If you're buying a home
- Proof of income (pay stub, federal notice of assessment, etc.)
- Investment statements
- Purchase offer for your new home
- Copies of the municipal and school taxes
- Copy of the listing, if the purchase is being made with an agent
- Your buyer's proof of financing, if you already own a home
- Current leases and statements of income and expenses, if you're buying an income property
If you're building a home
- Proof of income (pay stub, federal notice of assessment, etc.)
- Investment statements
- Contractor plans, specifications and estimates
- Copy of the building permit
- Copy of the preliminary contract
We may ask for more documents, depending on your situation.
How do I pay off my mortgage faster?
To pay off your mortgage faster, consider making accelerated payments. You'll make the equivalent of one extra monthly payment a year, and you'll reduce your amortization period.
With a closed mortgage
You can pay up to double the original amount of your payments or prepay up to 15% of your initial mortgage each year without prepayment charges.
For example:
- If your initial payment is $900, you can increase it to up to $1,800 for the entire term.
- If your initial mortgage is $500,000, you can pay up to $75,000 each year on top of your regular payments. However, you can’t transfer this right to another year and pay $150,000 in a lump sum.
With an open mortgage
You can increase your payments and make unlimited accelerated payments without prepayment charges. However, some offers (such as a cash back) may still require you to pay prepayment charges if you prepay your loan.
Get pre-approved
By phone
Make an appointment to apply for mortgage pre-approval.
Monday to Friday: 8 AM to 9 PM
Saturday: 9 AM to 6 PM
Elsewhere in Canada:
1-844-626-2476 Canada-wide mortgage services. This link opens your phone app.
We can also call you when it's convenient.
Don’t forget insurance
Loan Insurance
Protect your mortgage for peace of mind in the event of death or disability.
Home insurance
Protect your home and belongings from common risks.
Rates may differ if your amortization is over 25 years. Contact an advisor for more information.
Interest rates are recommended by the Fédération des caisses Desjardins du Québec to all its caisses.