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Desjardins Offers Special Mortgage Rates: 4.10% Variable and 4.49% Fixed Available

Desjardins is currently offering special promotional rates that could lower borrowing costs for new homebuyers, with a 5-year variable rate available at 4.10% compared to the standard 4.45%.

May 3, 20263 min read

Desjardins Offers Special Mortgage Rates: 4.10% Variable and 4.49% Fixed Available

What this means for you: If you are shopping for a home or looking to refinance, borrowing money just got a little cheaper. Desjardins, one of Canada’s largest financial institutions, has lowered its special promotional mortgage rates. This move could save you significant money on monthly payments compared to their standard posted rates.

The New Special Rates

Desjardins has updated its mortgage books with rates that are notably lower than their standard offerings. These are "special" rates, meaning they are discounted from the regular posted price.

Here are the specific numbers currently available:

  • 5-Year Fixed Rate: 4.49% (Special rate)
    • Standard Rate: 6.09%
    • The Savings: This is a discount of 1.60% off the standard price.
  • 5-Year Variable Rate: 4.10% (Special rate)
    • Standard Rate: 4.45%
    • The Savings: This offers a discount of 0.35% off the standard price.
  • 4-Year Fixed Rate: 4.39% (Special rate)

These rates are for closed mortgages, which means you generally cannot pay off the entire principal before the end of the term without a penalty.

Who is Affected

This news is most relevant to two groups of people:

  1. New Homebuyers: If you have a pre-approval or are actively shopping for a home, these rates lower the "stress test" threshold you need to qualify for.
  2. Renewing Borrowers: If your mortgage is coming up for renewal soon, you are not locked into a contract. You can switch lenders to take advantage of these lower Desjardins rates.

What You Should Do

1. Check the fine print These are promotional rates. They are often available for specific types of mortgages, such as switch mortgages (moving your loan from another bank to Desjardins) or new purchases. Make sure you qualify for the "special" pricing and not just the standard rate.

2. Compare with your current lender If you are renewing, take the Desjardins special rate to your current bank. Your current bank may offer to match or beat it to keep your business.

3. Calculate the difference Use a mortgage calculator to see the savings.

  • On a $500,000 mortgage amortized over 25 years, dropping from a standard 6.09% to the special 4.49% can lower your monthly payment by roughly $450. That is over $5,000 a year in savings.

4. Act quickly Interest rates fluctuate based on the bond market and Bank of Canada decisions. These special rates are time-sensitive and can be pulled or changed without notice.

5. Consider Variable vs. Fixed carefully

  • Fixed (4.49%): Your payments stay the same for 5 years. You are safe from rate hikes, but you won't benefit if rates drop.
  • Variable (4.10%): Your rate is lower right now, saving you money immediately. However, if the prime rate goes up, your payments will increase.

Bottom Line

Desjardins is aggressively competing for business by offering rates significantly lower than the national average. The 5-year fixed special at 4.49% is particularly attractive compared to the standard 6.09%. If you are in the market for a mortgage, you should add Desjardins to your comparison list immediately to see if these offers fit your financial plan.

Source: Desjardins Mortgage Rates

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