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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
Without Versatile Line of Credit	$10,000 application required for additional credit	$119,000	6.221%
With Versatile Line of Credit	$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.

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