Payment deferrals for loans, lines of credit and credit cards
COVID-19
Payment deferrals for loans, lines of credit and credit cards
Requesting to have your financing payments deferred can have major financial impacts. That's why it's important to properly assess your current situation.
Important details about payment deferral
Payment deferral does not cancel your financial obligations. Debts accumulated during the deferral period must be paid back. Make sure you consider all the possible impacts of this measure.
Your repayment amount could be higher than expected
When the deferral ends, your payments could go up and the remaining term or amortization could be extended. That means it could end up costing more than you planned to repay what you borrowed.
Deferring a low-interest loan could be a bad idea
It may seem like deferring payments on low-interest loans would be more advantageous. But that's not necessarily true.
There are 3 factors that determine the financial impact of a payment deferral: the interest rate, of course, but also the balance and the remaining term. The weight of each factor is different for every borrower.
Impacts for each financing product
The financial impacts of deferring payment vary from product to product.
Your financing product
Personal loan
Deferral period
At the end of the deferral period, if you've assessed your needs and reviewed your budget but still can't make your payments, contact one of our advisors as soon as possible to know your options.
It is possible to make a payment during the deferral period under certain conditions.
Contact your caisse to find out more.
Calculating interest
Interest continues to accrue during the deferral period. However, no interest is charged on the interest accrued during the deferral.
Example of financial impact for a personal loan
Let's say you have a personal loan, the initial amount of which is $10,000 at a fixed rate of 9.5% with a 10-year term. The current balance is $7,983 and you have 85 monthly payments left to make (a bit more than 7 years). A deferral of 3 monthly payments would generate additional interest of about $376.
Credit report
If we deferred your payments between March 2020 and March 28, 2021, they weren't marked as late on your credit report.
However, if you had already missed some payments before requesting a deferral or if you can't make your payments by the time they're supposed to resume, your credit report could be affected.
To find out what options are available to you, call 1-800-CAISSES (1-800-224-7737) or contact your caisse as soon as possible.
Certain relief measures granted after March 28, 2021, may impact your credit report.
Automobile and durable goods financing
Deferral period
At the end of the deferral period, if you've assessed your needs and reviewed your budget but still can't make your payments, contact one of our advisors as soon as possible to know your options.
It is possible to make a payment during the deferral period under certain conditions.
Call (1-800-224-7737) to find out more.
Calculating interest
Interest continues to accrue during the deferral period. However, no interest is charged on the interest accrued during the deferral.
Example of financial impact for an auto loan
Let's say you have financing for an initial amount of $25,000 at a fixed rate of 5.5% with a 6-year term. The current balance is $13,527 and you have 36 monthly payments left to make (3 years). A deferral of 3 monthly payments would generate additional interest of about $220.
Credit report
If we deferred your payments between March 2020 and March 28, 2021, they weren't marked as late on your credit report.
However, if you had already missed some payments before requesting a deferral or if you can't make your payments by the time they're supposed to resume, your credit report could be affected.
To find out what options are available to you, call 1-800-CAISSES (1-800-224-7737) or contact your caisse as soon as possible.
Certain relief measures granted after March 28, 2021, may impact your credit report.
Personal line of credit and student line of credit
Deferral period
At the end of the deferral period, if you've assessed your needs and reviewed your budget but still can't make your payments, contact one of our advisors as soon as possible to know your options.
It is possible to make a payment during the deferral period under certain conditions.
Contact your caisse to find out more.
Calculating interest
Interest continues to accrue during the deferral period. However, no interest is charged on the interest accrued during the deferral.
Example of financial impact for a line of credit
For a line of credit at a rate of 7% with a balance of $2,000, a deferral of 3 monthly payments would generate additional interest of about $35.
In this example, no transaction is made on the account and the rate does not vary during the deferral period.
Credit report
If we deferred your payments between March 2020 and March 28, 2021, they weren't marked as late on your credit report.
However, if you had already missed some payments before requesting a deferral or if you can't make your payments by the time they're supposed to resume, your credit report could be affected.
To find out what options are available to you, call 1-800-CAISSES (1-800-224-7737) or contact your caisse as soon as possible.
Certain relief measures granted after March 28, 2021, may impact your credit report.
Versatile Line of Credit (home equity line of credit)
Deferral period
At the end of the deferral period, if you've assessed your needs and reviewed your budget but still can't make your payments, contact one of our advisors as soon as possible to know your options.
It is possible to make a payment during the deferral period under certain conditions.
Contact your caisse to find out more.
Calculating interest
Interest continues to accrue during the deferral period. However, no interest is charged on the interest accrued during the deferral.
Example of financial impact for the Versatile Line of Credit
For a line of credit at a rate of 3.05% with a balance of $50,000, a deferral of 3 monthly payments would generate additional interest of about $381.25.
In this example, no transaction is made on the account and the rate does not vary during the deferral period.
Credit report
If we deferred your payments between March 2020 and March 28, 2021, they weren't marked as late on your credit report.
However, if you had already missed some payments before requesting a deferral or if you can't make your payments by the time they're supposed to resume, your credit report could be affected.
To find out what options are available to you, call (1-800-224-7737) or contact your caisse as soon as possible.
Certain relief measures granted after March 28, 2021, may impact your credit report.
Insurance on your line of credit
If your loan is insured, your premiums are automatically deferred for a maximum of 6 months. You remain covered and there's nothing you need to do.
Mortgage
Deferral period
At the end of the deferral period, if you've assessed your needs and reviewed your budget but still can't make your payments, contact one of our advisors as soon as possible to know your options.
You can make payments during the deferral period, under certain conditions. If you have a closed loan, penalties may apply, under certain conditions. For an open loan, there is no penalty.
Contact your caisse to find out more.
Calculating interest
Interest continues to accrue during the deferral period. However, no interest is charged on the interest accrued during the deferral.
Example of financial impact for a mortgage
Let's say you have a mortgage, the initial amount of which is $200,000 at a variable rate of 3% with a 5-year term. The current balance is $186,050 and you have 30 monthly payments left to make (2 and a half years). A deferral of 3 monthly payments would generate additional interest of about $202.
In this example, the rate doesn't vary during the deferral period.
Credit report
If we deferred your payments between March 2020 and March 28, 2021, they weren't marked as late on your credit report.
However, if you had already missed some payments before requesting a deferral or if you can't make your payments by the time they're supposed to resume, your credit report could be affected.
To find out what options are available to you, call 1-800-CAISSES (1-800-224-7737) or contact your caisse as soon as possible.
Certain relief measures granted after March 28, 2021, may impact your credit report.
Insurance on your loan
If your loan is insured, your premiums are automatically deferred for a maximum of 6 months. You remain covered and there's nothing you need to do.
Learn more about life and disability insurance - External link. This link will open in a new window.
Mortgage insured by CMHC or Sagen
Industry standards that existed before the pandemic will once again apply for members who cannot meet their financial obligations.
If you're having difficulties meeting your financial obligations, we will look at your situation and give you some options to make your mortgage payments and your life and disability insurance payments, if applicable.
We advise you to contact your caisse or call 1-800-CAISSES (1-800-224-7737) long before your payment resume to discuss your options.
Credit report
If we deferred your payments between March 2020 and March 28, 2021, they weren't marked as late on your credit report.
However, if you had already missed some payments before requesting a deferral or if you can't make your payments by the time they're supposed to resume, your credit report could be affected.
To find out what options are available to you, call 1-800-CAISSES (1-800-224-7737) or contact your caisse as soon as possible.
Certain relief measures granted after March 28, 2021, may impact your credit report.
Credit card
Deferral period
At the end of the deferral period, if you've assessed your needs and reviewed your budget but still can't make your payments, contact one of our advisors as soon as possible to know your options.
The payment deferred is equivalent to the minimum required payment.
It is possible to make a payment during the deferral period under certain conditions.
If you're a Desjardins member, contact your caisse to find out more.
If you're not a member, contact Desjardins Card Services at .
Financing plans linked to the account
You can only make one deferral request at a time. When you ask to defer your credit card payments, the deferral will automatically apply to the credit card balance and any Accord D financing plans.
Temporary annual interest rate
During the deferral period, the interest rate on Desjardins credit cards is temporarily reduced to 10.9%, except for cards that already offer the 10.9% rate.
Calculating interest
Interest on your balance continues to accrue during the deferral period at the applicable rate. However, no interest is charged on the interest accrued during the deferral.
Example of financial impact for a credit card
During a payment deferral, the interest rate is temporarily reduced from 19.9% to 10.9% on Desjardins credit cards. A deferral of 3 monthly payments on a card with a $1,000 balance would generate additional interest of about $27.25. You benefit from interest savings of $22.50 due to the temporary rate reduction.
In this example, no transaction is made on the account during the deferral period.
Minimum payment
You are not required to make the minimum payment on your credit card account during the deferral, including interest, even if we continue to send you statements showing an amount owing. You can make a partial or a complete payment if you wish.
Authorized payments
If you are signed up for the Authorized Payment Service, no preauthorized withdrawals will be made during the deferral period.
Statement
An adjustment for the deferral of the minimum payment will appear on your statement as report de paiement minimum covid-19.
Credit report
If we deferred your payments between March 2020 and March 28, 2021, they weren't marked as late on your credit report.
However, if you had already missed some payments before requesting a deferral or if you can't make your payments by the time they're supposed to resume, your credit report could be affected.
To find out what options are available to you, call 1-800-CAISSES (1-800-224-7737) or contact your caisse as soon as possible.
Certain relief measures granted after March 28 ,2021, may impact your credit report.
Credit balance insurance
Credit balance insurance premiums are included in the balance on your credit card statements. When you pay your credit card balance, you also pay the insurance premiums.
Learn more about credit balance insurance - External link. This link will open in a new window.
Accord D financing with equal payments (from the caisse or a merchant)
Deferral period
At the end of the deferral period, if you've assessed your needs and reviewed your budget but still can't make your payments, contact one of our advisors as soon as possible to know your options.
It is possible to make a payment during the deferral period.
If you are a Desjardins member, contact your caisse to find out more.
If you are not a member, call .
Monthly payment
A new Accord D deferred payment plan will be created with a grace period equal to the requested deferral period. This means that during the deferral period, no monthly payments will appear on the statement.
Financing plans linked to the account
A deferral of Accord D financing payments also automatically applies to the credit card and other plans linked with the account (credit card balance and Accord D financing).
Deferral request made before April 15, 2020
If you have multiple Accord D plans, they will be combined into a single plan for the purposes of the deferral and separated once the deferral period is over.
Deferral request made after April 15, 2020
If you have multiple Accord D plans, a new one is created for each plan linked to your account.
At the end of the deferral period, interest will apply as usual for both cases.
Credit report
If we deferred your payments between March 2020 and January 24, 2021, they weren't marked as late on your credit report.
However, if you had already missed some payments before requesting a deferral or if you can't make your payments by the time they're supposed to resume, your credit report could be affected.
To find out what options are available to you, call 1-800-CAISSES (1-800-224-7737) or contact your caisse as soon as possible.
Certain relief measures granted after January 24, 2021, may impact your credit report.
Accord D financing with deferred payments (from a merchant)
Deferral period
At the end of the deferral period, if you've assessed your needs and reviewed your budget but still can't make your payments, contact one of our advisors as soon as possible to know your options.
It is possible to make a payment during the deferral period.
If you're supposed to start making payments during the requested deferral period
You'll start making payments only once the deferral period is over.
If you're supposed to start making payments after the requested deferral period
No change will be made.
Student loan
Government measures for government-guaranteed student loan payment deferrals ended on September 30, 2020. Payments should resume in October as per the loan agreement.
If you are experiencing financial hardship, the Deferred Payment Plan, overseen by the Ministère de l'Éducation et de l'Enseignement supérieur, will be available again in October 2020. For more information, or to apply, visit the Aide financière aux études website.
If you have any questions, you can contact Desjardins Group’s Student Advisory Centre toll-free at 1-866-388-3373 or email pret.etudiant@desjardins.com - This link will open in a new window..
Start preparing for the end of the deferral
Estimate how much you'll have to pay after the deferral period is over and draw up a budget based on your estimate. Once you're back on your feet, consider making a lump-sum payment to cover the payments that were missed and interest that accrued during the deferral period.
We're assessing requests on a case-by-case basis. Payment deferrals are only granted to financing in good standing, with no late or missed payments.