Mortgage penalty by lender / Desjardins
Desjardins mortgage penalty calculator
If your mortgage is with Desjardins and you are thinking about breaking it early, this page sets out how Desjardins describes its prepayment charge and lets you estimate the penalty for your own numbers. It is an estimate based on the information you enter. Only Desjardins can give you the actual figure.
MortgageSkip is independent and is not affiliated with, endorsed by, or acting for Desjardins. Lender details summarised from Desjardins’s own published information, last reviewed September 28, 2026.
Desjardins at a glance
- Fixed-rate closed mortgages
- Not published in a form we could confirm. Check your mortgage contract.
- Variable-rate closed mortgages
- Not published in a form we could confirm. Check your mortgage contract.
- Annual prepayment privileges
- Desjardins describes a prepayment of up to 15% of the original amount of the mortgage loan each year on a closed mortgage, and payments of up to double the original payment amount set out in the contract. Prepayments within these limits generally carry no charge; amounts above them usually do. Products differ, so you may wish to confirm yours.
- Online penalty calculator
- Desjardins publishes its own prepayment charge calculator, which is the more authoritative estimate for an existing Desjardins mortgage. Open Desjardins’s calculator.
Estimate a Desjardins penalty
The calculator below is pre-set to the way Desjardins measures a fixed-rate penalty. Nothing you enter leaves your browser. The result is an estimate, not a quote.
Mode
Enter just the essentials. We'll fill in the rest.
Your current mortgage
Pre-set for Desjardins, based on how it describes its prepayment charge. You can change it if your contract says otherwise.
Using a posted rate of 6.05% for the 3.0 years you have left, less a discount of 1.84 points worked out from your start date and rate. Posted rates are the big-bank average published by the Bank of Canada, 2026-09-23; your own bank’s may differ.
Minimum savings threshold
Only flag breaking as worthwhile if savings exceed this. Breaking involves legal fees and paperwork, so small savings may not be worth the effort.
Your break analysis
Technically yes — but below your savings threshold
Savings of $14,031 — below your $15,000 threshold
Breaking now would save about $14,031, which is less than the $15,000 you said would make it worth the effort. After legal fees and paperwork it may not be worth your time.
What to consider
Your payment drops by roughly $398 per payment.
Over the comparison window you pay $14,338 less, but owe $307 more at the end.
Estimated break penalty
IRD $9,291 vs 3-month interest $6,745 — IRD applied
IRD measured against 4.21%: posted rate less your original discount, the bank method
Measured the other way the IRD would be $14,798. Lenders differ, and only a payout statement settles it.
$9,291
If you stay
If you break
Balance detail at break date
Penalty uses the Canadian semi-annual compounding standard. Actual lender penalties vary by contract and only your lender can give you a real payout figure.
For informational purposes only — consult a licensed mortgage professional before deciding.
How Desjardins measures the penalty
Desjardins' glossary describes the interest rate differential on a closed fixed-rate mortgage as the difference between your mortgage rate and the posted rate, which is the rate the Fédération des caisses Desjardins du Québec recommends for a fixed-rate closed term closest to your remaining term. If you received written confirmation of a lower rate, the posted rate is reduced by the same rate reduction. That is the posted-rate-less-discount approach. We could not find published wording on whether the fixed-rate charge is the greater of this and three months' interest, or on the variable-rate charge, so you may wish to check your mortgage contract for both. This information comes from Desjardins' Quebec caisse network; if your mortgage is with Desjardins Ontario Credit Union, you may wish to confirm its terms directly.
In the calculator this is the "big bank or credit union" setting: the interest rate differential is measured against a posted rate for the time left, less the discount you were given when you signed. The calculator uses the Bank of Canada's average big-bank posted rates, and Desjardins's own posted rates may differ, which is one reason your figure may not match.
Every mortgage contract sets its own terms, and older or specialty products can differ from what a lender publishes today. If the scenario looks worth exploring, you may wish to ask Desjardins for a payout statement, which is the figure that counts.
Source: Desjardins, Glossary (interest rate differential and posted rate). Reviewed September 28, 2026. If something here has changed, we would like to hear about it through the contact page.
Questions about a Desjardins penalty
- How does Desjardins calculate its mortgage prepayment penalty?
- We could not confirm this from published information, so you may wish to check your mortgage contract.
- What is the penalty for breaking a Desjardins variable-rate mortgage?
- We could not confirm this from published information, so you may wish to check your mortgage contract.
- How much can I prepay on a Desjardins mortgage without a penalty?
- Desjardins describes a prepayment of up to 15% of the original amount of the mortgage loan each year on a closed mortgage, and payments of up to double the original payment amount set out in the contract. Amounts above these limits usually carry a prepayment charge. Privileges differ by product, so you may wish to confirm yours in your mortgage documents.
- Does Desjardins have its own mortgage penalty calculator?
- Yes. Desjardins publishes a prepayment charge calculator on its website. For an existing Desjardins mortgage it is a more authoritative estimate than a general calculator like this one, and a payout statement from Desjardins is the figure that counts.
- Why might Desjardins's figure differ from this estimate?
- This calculator uses the Bank of Canada's average big-bank posted rates and the numbers you enter. Desjardins's own rates, the exact term it compares against, how it counts the days remaining, and any fees can all change the result. These figures are estimates based on the information entered. MortgageSkip is not affiliated with Desjardins.