Caisses Desjardins du Québec and Caisses populaires de l'Ontario [Change site]

Example of use – Long-time owner

How can you manage all your credit needs with the Versatile Line of Credit?

To better understand the advantages of this line of credit, let's look at John Cash's financial summary.

Value of the home: $250,000

Mortgage: $80,000

Credit situation
Line of credit available
Total financing used
Average interest rate
$10,000
application required for additional credit
$119,000
6.221%
$81,000
financing managed by John
$119,000
4.467%

Without the Versatile Line of Credit

Without the Versatile Line of Credit, John must apply each time he needs additional financing.

Credit products
Amount
Rate
Term
Mortgage
(15-year term – monthly payment of $639)
$80,000
Fixed at 5.20%
5 years
Auto loan
(without insurance – monthly payment of $502)1
$25,000
Fixed at 7.60%
5 years
Personal Line of Credit
(monthly payment of $215)1
$10,000
Variable at 10.50%
5 years
Credit card
(monthly payment of $104)1
$4,000
Fixed at 19.40%
5 years
Total financing:
$119,000
Average rate of 6.221%
 

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, John can redistribute his credit products, diversify his mortgage and get much better rates since he took out security of mortgage with his financing.

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

New credit product distribution
Amountt
Rate
Term
Mortgage
(15-year term – monthly payment of $276)
Portion 1:
$40,000
Reduced variable at 3.00%
5 years
(monthly payment of $319)
Portion 2:
$40,000
Fixed at 5.20%
5 years
Line of Credit
(variable portion of the Versatile Line of Credit - monthly payment of $264)1
$14,0002
Variable at 5.00%
5 years
Secured open auto loan
(monthly payment of $485)
$25,000
Fixed at 6.20%
5 years
Total financing used:
Financing still available:
(Total payments of $1,344)
$119,000
$81,000
Average rate of 4.467%
 
 

Annual savings with the Versatile Line of Credit: over $8,000 in interest over the 5-year term.

1. For the purpose of the example, we assume that variable rates remain stable. Amounts owed are amortized over their respective term.
2. Line of credit and credit card were combined in the Versatile Line of Credit to benefit from a better rate.

John doesn't have to apply again for additional financing; he can use the funds available as he wishes. In addition to a competitive rate, the Versatile Line of Credit lets him manage his projects or purchases independently from one another and gives him a realistic overview of his credit situation.

The interest rates above are provided as examples only. Current rates are available in the Rates section. For additional information, please contact an advisor at your caisse. In Ontario, for loans for fixed amounts, the annual percentage rate (APR) is equal to the posted interest rate if no additional charges apply to the loan. If non-interest charges apply, the APR may be different.

For more information
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At the caisse At the caisse
Make an appointment with a caisse advisor:
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)
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Interest rate

Desjardins Personal Line of Credit
As of February 10, 2012
Amount
Rate
$5,000 to $12,500
10.50%
Other rates – Line of credit

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