Personal Home > Products and services > Loans, lines of credit and credit cards > Mortgages > Versatile Line of Credit > Example of use – New buyer

Example of use – New buyer

Choosing the Versatile Line of Credit to finance the purchase of a property gives borrowers the freedom to manage their current and future loans. Here's Mark Desjardins's financial summary.

Value of the home: $250,000

Mortgage: $191,000

Credit situation	Total financing	Total monthly cost
Without the Versatile Line of Credit	$209,000	$1,495
With the Versatile Line of Credit	$209,000	$1,334

Without the Versatile Line of Credit

Credit product	Amount	Rate	Term	Monthly cost
Mortgage (25-year term)	$191,000	Fixed at 5.20%	5 years	$1,133
Personal line of credit	$5,000	Variable at 10.50%	Over 5 years	$107
Accord D financing	$9,000	Fixed at 0%	Over 5 years	$150
Credit card1	$4,000	Variable at 19.40%	Over 1 year	$105
Total financing (average rate of 5.278%):	$209,000	Total monthly cost:  $1,495

1. For the purpose of the example, we assume that variable rates remain stable. Amounts owed are amortized over their respective term.

With the Versatile Line of Credit

With the Desjardins Versatile Line of Credit, Mark can redistribute his credit products, diversify his mortgage² and, since he's applying security of mortgage to his financing, he gets a much better rate. This new distribution takes into consideration his tolerance to risk and ability to repay his debts.

Versatile Line of Credit (financing available = 80% of the value of the home): $200,000

New credit product distribution	Amount	Rate	Term	Monthly payment
Mortgage (25-year term)	Portion 1: $100,000	Reduced variable at 3.00%	5 years	$474
	Portion 2: $91,000	Fixed at 5.20%	5 years	$540
Line of credit1 (variable portion of the Versatile Line of Credit)	$9,000	Variable at 5.00%	5 years	$170
Accord D financing1	$9,000	Fixed at 0%	3 years	$150
Total financing:	$209,000	Total monthly cost: $1,334

1. For the purpose of the example, we assume that variable rates remain stable. Amounts owed are amortized over their respective term.

Annual savings with the Versatile Line of Credit: over $12,000 in interest over the 5-year term.

The total monthly payment is lower because the interest rates are lower.

	Online	See Versatile Line of Credit.
	At the caisse	Make an appointment with a caisse advisor: online by phone
	By phone	Montreal area: 514-CAISSES (514-224-7737) Elsewhere in Canada and the U.S.: 1-800-CAISSES (1-800-224-7737)

2. Mortgage diversification also available for mortgages with 80% to 95% loan-to-value ratios under certain conditions.