Desjardins Mortgage Calculator of June 2023

What is the Desjardins mortgage calculator?

The Desjardins Group was founded in 1900 in Lévis, Quebec by Alphonse and Dorimène Desjardins. Desjardins is the leading financial cooperative in North America, with $397.1 billion in total assets. Desjardins currently has over 7.5 million customers, 782 points of service, and 215 caisses. Its ATM network is the largest in Quebec. In addition, it is a leader in this region's online and mobile banking services.

The Desjardins Group provides a full range of financial and insurance services in Canada: credit cards, credits, mortgages, student financing, personal and business accounts, mobile deposits, savings and investment, brokerage services, mortgage life insurance and disability insurance, travel, home, pet, auto insurance, wealth management.

If you choose this lender as your mortgage provider in Canada, you could have all necessary financial products in one place and contact Desjardins caisse advisor or mortgage representative.

Desjardins mortgage options include: fixed rate and variable rate mortgages, closed and open mortgages, hybrid mortgages, and a home equity line of credit (HELOC) called Versatile line of credit.

• Closed fixed-rate mortgage rates vary from 4.40% — 6.54% for terms from 6 months to 10 years.

• The open fixed-rate mortgage rate is 6.95% for a 6-month or one-year term.

• Variable-rate mortgages provide different terms, such as an open regular mortgage with an interest rate of 5.70%, a closed reduced mortgage with a 4.70% rate, or a closed protected mortgage with a 4.95% rate.
  The "5-in-1" Yearly Rate Resetter (closed) mortgage offer suggests a 4.74% interest rate. This rate is for a 1-year fixed rate mortgage. For new mortgages, a promotional rate may apply during the first year.

• A hybrid mortgage offer allows customizing your loan. Each tranche of your mortgage has its rate, term, and payment frequency to meet your preferences and needs. You could get the benefits of both fixed and variable mortgage rates.

A variable rate fluctuates with the prime rate, while a fixed rate is set during the loan term. The current Desjardins prime rate is 4.70%.

For Ontario, the annual percentage rate may be lower as no additional charges are applied. However, mortgage rates may vary according to your credit rating, borrowed amount, amortization period, and other factors.

These interest rates are recommended by the Fédération des caisses Desjardins du Québec to all its caisses.

The lender has personal accounts service for online banking, AccèsD, and a mobile app that assist in going through the pre-approval, refinance, and mortgage processes online. To use AccèsD, a borrower should be a caisse member or have a Desjardins credit card.

The mortgage lender offers options for first-time homebuyers and borrowers who want to renew their mortgage, transfer or manage the mortgage.

• First-time homebuyers may receive a cashback if they get a mortgage plus a special offer for home insurance. The cashback amount is $1,500 — 3,500, depending on the mortgage.
  The conditions of this offer may be subject to change, as this particular offer is valid until September 2022.

• Renewal is penalty-free up to 120 days before your maturity date and available online, by phone, or in person with the assistance of Desjardins mortgage representative.

• A transfer is a good idea because it gives you cashback up to $1,200 and lets you renew the mortgage at the preferable mortgage rates. The cashback option is applied to loans linked to the Versatile Line of Credit worth over $100,000 with a minimum term of 48 months.

Desjardins website offers a significant number of helpful resources and tools about home buying, insurance, and refinance: home buyer's guide, list of necessary organizations, glossary, future home owner's checklist, homebuilder's guide, list of expenses, home insurance online quote, mortgage type finder, and calculators. Desjardins mortgage calculators include:

• the mortgage amortization period calculator that estimates how long it will take to pay off your mortgage;

• the mortgage affordability calculator helps to find out how much you can afford to borrow and what property you may purchase;

• the mortgage payment calculator gives you an approximate monthly payment amount;

• the mortgage penalty calculator is designed to estimate your potential pre-payment penalty;

• the Green Homes Program savings calculator is made to assess your potential Desjardins cashback amount and energy savings;

• the home equity calculator assists in calculating and reducing your debts using the equity of your house.

Why do you need the Desjardins mortgage calculators?

Using calculators, you could go through your mortgage process smoothly, quickly, and efficiently. Start from basic research and finish as a happy homeowner.

• Find your maximum home purchase price, the potential range of prices, and mortgage amount.

It is worth starting with the evaluation of your budget and financial opportunities. You may use My First Home if you have the AccèsD or make calculations with the mortgage affordability calculator. It takes into account all necessary factors as a down payment which has an impact on to purchase price.

Down payment may range from 5 — 20% or more from property appraised value. Insured mortgages are high-ratio mortgages with a down payment of less than 20%.

If the home purchase price is less than $500,000, your minimum down payment should be at least 5%. A property that costs between $500,000 and $999,999 requires a minimum down payment of 5% on the first $500,000 purchase price and 10% for the remaining portion of the home purchase price.

But there is no mortgage insurance for a home that costs $1 million or more; the only option is to have a down payment of more than 20% of the home price.

Mortgage default insurance is often referred to as CMHC — Canada Mortgage and Housing Corporation — insurance, but this mortgage insurance may also be provided by two private companies in Canada: Sagen (formerly Genworth Financial) and Canada Guaranty.

The life insurance coverage compensates your mortgage balance in case of death. At the same time, the default insurance covers the risks of a lender in case of a borrower's default. That is why lenders usually offer lower interest rates for borrowers with mortgage insurance.

You may see the insurance amount in the borrowing agreement, but with a mortgage calculator, you can estimate it in advance to know what you could face and how it affects your mortgage amount. You don't have to calculate the mortgage insurance premium manually. It also allows computing the payment with life insurance and disability insurance premiums if necessary.

With a down payment of more than 20% of the home purchase price, you will avoid paying insurance premiums, but typically the mortgage rate will be higher. On the other hand, if you make a larger down payment (but less than 20%), your insurance premium and the monthly payment will be smaller. Consider which situation answers your financial needs and decide if you will save up for a larger down payment.

The calculator provides a range of home prices; you can determine which option is affordable for you and start seeking a suitable home.

• Estimate mortgage payments.

It is crucial to understand your monthly budget, especially when you already have credit cards, a line of credit, and an auto loan. All your debts and expenses should be carefully computed; that is easy to do with a calculator.

Change variants of mortgage types, amortization period, and repayment frequency, and review the result. You will find out how to save money on interest and repay your loan quicker. You may increase your payment frequency and amount or prepay the loan. The Desjardins mortgage payment calculator will provide you with a specific value of interest savings compared to monthly repayments if you input prepayment options.

Also, you may consider choosing a Desjardins hybrid mortgage to get benefits from different types of mortgage or select life and disability insurance to look at how it will affect your payment (mortgage insurance is already included).

The mortgage penalty calculator computes the cost of the fast loan settlement. However, it could be challenging to consider all the details as different home loan options have various conditions. For example, with an open mortgage, you could prepay any amount at any time. At the same time, a closed one has restrictions and penalties when you pay before the maturity date, either in part or full mortgage amount. Open mortgages are usually chosen by homeowners who want to pay it off or move before the end of the mortgage term.

If you borrow with Desjardins, you can make a prepayment with no charge or penalty at your caisse or on AccèsD. One or more partial prepayments per calendar year with up to 15% of the initial loan amount for a closed mortgage. Otherwise, you have to pay the penalty. Using the mortgage penalty calculator to compute whether you have the penalty and how much it is highly recommended.

Ensure that you can afford monthly installments before applying.

• Compare the costs of different mortgage offers.

There are different criteria for comparison, and you could analyze mortgage offers according to your individual life goals. Sometimes it may look like a good deal with a lower interest rate, but other details like fees, cashback, and promo rates end up as a preferable solution. It is not enough to just find the best mortgage rates.

Also, it is essential to consider when you are comparing mortgage scenarios that more extended amortization periods accumulate more interest during the life of a loan. Therefore, if you can make larger monthly mortgage payments, you could reduce the mortgage and interest amounts and pay off the mortgage faster.

• Decide which mortgage option suits your financial goals and situation best.

The calculators have visualization as a graph, diagram, and summary of various scenarios that assist the borrower in making a choice. Using calculators could be a solution that helps evaluate the offers from different perspectives and analyze all options to save money.

• Go through pre-approval.

Use the online Desjardins AccèsD account, mobile app, or phone call.

• Make a purchase offer.

The purchase offer is a document that is legally binding on the parties—a contract in which you offer to purchase a house under certain conditions.

• Get a mortgage and home insurance quotes.

Available online through AccèsD or Online services account, or call at 18882778726.

• Finalize your deal and move to your dream home.

You sign the deed of conveyance at the notary’s office.

If you want to renew your mortgage, use calculators to compare options and evaluate the amortization period, mortgage principal, and interest.

If you have decided to consolidate your debts, use a home equity calculator to determine the equity of your house. This calculator is made to inform you about a Versatile Line of Credit as a possible solution to decrease the interest costs on your loans, credit cards, and lines of credit. Then, contact a caisse advisor for personalized assistance, pre-authorization, and products based on your borrowing profile and repayment ability.

How to use the Desjardins mortgage calculators?

Visit Desjardins's official website and choose «Tools and Calculators» at the bottom of the page. You will see a great variety of personal and business resources; choose «Mortgage» to access home loan-associated calculators and guides connected to help borrowers and provide a fast and convenient way to start the homebuying process, refinance, and save your money and raise the home equity.

• Open the amortization period calculator.

1. Input your loan amount, payment, type, and repayment frequency. An interest rate will be automatically put in the box according to the type of mortgage.

2. If the amortization period exceeds the maximum amount, the calculator asks you to increase the amount of the payment or decrease the loan amount.

3. Get the results: amortization period, number of remaining regular payments, and an amortization graph.

4. Print your calculations, save them as a PDF file, contact an advisor, or open other calculators.

Let's compute an amortization period for a $400,000 fixed rate closed mortgage with $2,800 paid monthly. The calculator finds a mortgage interest rate of 6.04%. The amortization period calculated on this data is 250 months (20.83 years).

• Open the mortgage affordability calculator.

1. Enter your personal information: gross annual income of all co-applicants before taxes, total monthly debt payments (personal loan, credit cards, car loan, etc.), down payment. You may input the limit monthly repayments if you want to set a fixed budget.

2. Fill out potential costs of your home: municipal and school taxes (municipalities and school boards levy property taxes), energy costs (the monthly heating and electricity costs), and condo fees (if applicable). Approximate values are written automatically.

3. Choose the loan terms and conditions: type, loan term, amortization period, and interest rate. Then, average values are calculated by the tool.

4. Click the «Calculate» button and get the results: maximum home value, the maximum amount of mortgage (including the mortgage insurance premium), monthly payments, and an amortization graph.

5. There could be a situation when based on your information, the calculator determines that you couldn't borrow as the total debt service ratio is too high. You will be advised to ensure the calculated data are correct or contact your caisse advisor.

6. You could choose and click an appropriate button: «Talk to an advisor,» «Save and print,» and «Choose loan insurance coverage.» Let's press the last one.

7. The new window will open. First, fill out for each borrower: the age and sex, tobacco or nicotine usage, insurance type (life or life and disability insurance), and percentage of the balance of your loan that will be paid in the event of your death or/and disability. Then, get the monthly payment, including life and disability insurance premium and mortgage rate, including life and disability insurance.

• Open the mortgage payment calculator.

1. Select an option: Purchase price to compute repayments for a new house or Mortgage balance to calculate repayments for your current mortgage.

2. Fill out: home market price or mortgage balance, down payment (if the value is less than 5%the calculator will highlight it with red), type and term (the mortgage rates are filled in automatically), amortization period, payment frequency, annual prepayment and additional prepayment amount if needed.

3. Click the «Calculate» button to get results: monthly repayment, which includes the mortgage insurance, interest savings compared to monthly repayments, and an amortization graph.

4. Click the «Hybrid mortgage» button to diversify your mortgage by combining two types of mortgages. The new window will open. Input type and term, mortgage combination percentage, interest rate, payment frequency, and amortization period or remaining amortization for two offers. Get payment per month for both mortgages.

5. Press the «Select life and disability insurance coverage» to consider how your monthly repayments will change if you add the insurance premiums.

6. You may choose the «Print» or «Save as PDF file» options.

The rest of the calculators work according to the same principle: input the key values, select the option that suits you most, and press the «Calculate» button.

All calculators are made for illustrative purposes only. Current rates and offers may differ. Certain conditions apply and are subject to change without notice.