Desjardins Drops 5-Year Fixed to 4.64%

Quebec-based credit union now offers one of Canada’s lowest long-term mortgages.

In a surprise move this week, Desjardins slashed its 5‑year closed fixed rate to 4.64%, undercutting big banks and surprising the market This puts Desjardins at the top of the leaderboard for best long-term rates — particularly notable given the cautious tone from other lenders.

Why This Matters

With inflation easing and the Bank of Canada holding steady at 2.75%, more lenders are cautiously offering rate discounts — but few match Desjardins’ aggressive pricing .

“We saw a short window to underprice fixed-term rates,” says a Montreal-based broker. “Borrowers in Quebec, especially those working with A-lenders, are getting a rare win.”

Smart Moves in an Easing Market

Locking in at 4.64% over five years offers borrowers certainty in a market still grappling with inflation uncertainty. It also pulse-checks the industry:

• Pressure is on for other credit unions and banks to respond with similar offers.
• Borrowers on the fence might jump for this rate before it disappears.
• Refinancers with higher existing rates (say, 5–5.5%) now have a strong incentive to lock in savings.

What Borrowers Should Know

• Location matters: This offer is strongest in Quebec; availability may be limited in other provinces.
• Read the fine print: Special rates often tie borrowers to smaller down payments or stricter prepayment terms.
• Timing is key: If a BoC rate cut arrives in late summer, fixed rates could dip even lower — but there’s no guarantee.