Comparison of Canadian lenders and their rates.
16 April 2023
Category Blog
16 April 2023,
 0
Comparison of Canadian lenders and their rates.

When the time comes to choose a mortgage for the purchase or refinancing of a property, several choices of lenders are available to us.

In Quebec, the most popular lender is Desjardins. When you look across the country, Royal Bank takes position as Canada’s biggest lender. 

Which bank should you choose when it comes time to take out a mortgage loan? Let’s compare together.

Below you will find an objective comparison of the different products, rates, and advantages of each lender.

At any time, you can use the form on this page to compare rates and products from these banks, as well as several others through one of our partner brokers.

Desjardins VS Royal Bank (RBC) – Who offers the best mortgages?

Best mortgage rates from lenders in Canada.

Desjardins and RBC are two of the best known and most popular mortgage lenders in Quebec. Every week, our partner brokers are asked which of these two lenders offer the best mortgages.

The answer depends on your profile, your needs, and your type of project!

Indeed, Desjardins offers more flexible financial products and terms than Royal Bank for various projects. We can think, in particular, of self-build projects. Conversely, Royal Bank often agrees to lend to customers with less conventional profiles. If we try to determine who the best overall lender is, it would be very difficult, if not impossible. It varies from one individual to another.

What are the main mortgage products offered by Desjardins and RBC?

Whether you consult an RBC or Desjardins advisor, you will have access to the same mortgage products.

Indeed, each bank has “in-house” products that bear different names but often have very similar characteristics.

The main mortgage products offered by Desjardins and Royal Bank are as follows:

  • Closed Mortgage
  • Open mortgage
  • Fixed rate mortgage
  • Variable rate mortgage
  • Mortgage with cash back
  • Home equity line of credit
  • Line of credit with variable rate mortgage with fixed payment

In specialized products, it is important to note that Desjardins offers financing for self-build projects while RBC does not. If you have more complex projects that need financing, it is very important to discuss them with an advisor who can tell you which lender is best suited for you.

Mortgage Lender Comparison - Desjardins VS Royal Bank When comp

When comparing lenders, it can be interesting to compare their history. It can help us better understand the stability of these banking giants as well as their place in the current market.

We have, therefore, made a short summary of each of the lenders, from their beginnings to the present day.

DESJARDINS

It was in the early 1900s that Alphonse Desjardins established what was then called Caisse Populaire de Lévis Cooperative.

Over several decades, Desjardins has built a name synonymous with trust in the Quebec market and became a leader in financial services.

A host of acquisitions followed, such as The Personal in 2000, and State Farm in 2015. Today, Desjardins provides about 40% of the mortgages in Quebec, far ahead of the other major Canadian banks.

ROYAL BANK

Royal Bank was established in 1869 and is one of the oldest financial institutions in Canada.

Its rapid expansion in Canada began in the early 1900s. With over 150 years of history, Royal Bank is a symbol of stability and reliability across the country.

Today, RBC is the #1 lender in English Canada, but not as large in Quebec. RBC now provides about 9% of the total number of mortgages in the province.

Current mortgage rates – RBC versus Desjardins

One of the most important elements when shopping for your mortgage is certainly the interest rate.

This is the first question all customers have when comparing products from different banks.

Which bank offers the best rate? Is it Desjardins or RBC?

In fact, rates are changing so quickly these days that it’s hard to say. Their rates differ but minimally, and sometimes, special offers are in effect, which makes one lender more interesting than another.

In the following table, you will see the rates offered as of September 1, 2022 by Desjardins and RBC for different types of loans. Note that these rates will no longer be in effect by the time you read this article. Fill out our form to get up-to-date rates.

Interest rateDesjardinsRoyal Bank
1-year fixed rate6.19%6.14%
2-year fixed rate6.19%5.84%
3-year fixed rate4.99%5.59%
4-year fixed rate6.14%5.54%
5-year fixed rate5.29%5.04%
Variable rateN.D.5.89%
Protected variable rate6.50%
(5-year variable)		6.25%
(5-year variable)

*Rates in effect as of April 2023. Subject to change without notice. No warranty offered. Consult our partner brokers for up-to-date rates.

What are the benefits of getting an RBC mortgage?

Why should you choose Royal Bank as your mortgage lender for your home financing? Here are some tangible benefits of choosing RBC for your mortgage:

  • Excellent lender for more traditional financing
  • Largest mortgage lender and bank in the country
  • Multitude of online tools, calculators, and resources for clients
  • Accepts applications from less conventional clients
  • Excellent customer service
  • Very stable lender offering excellent financing conditions

Compare RBC rates for free by filling out the form on this page.

What are the advantages of choosing a Desjardins mortgage?

Why should you choose Desjardins as your mortgage lender for your real estate financing project in Quebec?

Here are several concrete advantages of entrusting them with your mortgage:

  • #1 Mortgage Lender in Quebec
  • Multitude of products offered according to your needs
  • Agrees to finance self-build projects
  • Cooperative that encourages the local economy
  • Great customer service
  • Easy to use website and app
  • Excellent reputation and reliability

To compare Desjardins mortgage rates and products, simply fill out our online form, free of charge!

Factors to consider when choosing a mortgage

When it comes to choosing a mortgage, it’s not just about choosing by lender.

Even if you have always done business with the same lender, this does not mean that it necessarily offers you the best financing conditions.

Before signing anything, you should consider the following:

  • Mortgage rate
  • Penalty in case of early repayment
  • Loan open or closed
  • Fixed or variable rate
  • Loan terms and conditions
  • Notary paid by the lender?
  • And more!

A mortgage broker can really help you fully understand all aspects of your mortgage so that you can make an informed and advantageous choice. 

The services of a mortgage broker are free and allow you to have the assistance of an independent professional. He can compare the rates and products of +20 lenders for you, will take care of all the paperwork for your financing.

Mortgage-broker explaining the mortgage products and benefits.

Who are the other major mortgage lenders in Quebec?

Desjardins and Royal Bank are two very popular mortgage lenders in Quebec. That being said, there are several other major lenders in the province.

In total, the 7 major Canadian banks as well as the Desjardins Group grant around 85% of mortgage loans in Quebec each year.

Other big players in the industry include:

  • National Bank
  • Scotiabank
  • Bank of Montreal
  • TD Bank
  • Tangerine
  • Laurentian Bank
  • CIBC
  • HSBC Bank
  • And more!

There are also dozens of small virtual banks and online lenders in Quebec. We can think of Manulife, MCAP, First National, La Capitale, etc.

Would you like to compare mortgage rates and products from major banks and virtual lenders? Here’s how!

Compare mortgage rates and products from +20 lenders using our form!

Simplifying the mortgage application process with a broker.

Finding the #1 rate in Quebec is easier than you think!

Fill out the form on this page to compare the rates and products of +20 banks and mortgage lenders in Quebec!

Our partner mortgage brokers have access to a wide range of products from a multitude of lenders.

If you consult a broker, you will benefit from an efficient service that will simplify your financing process.

Whether you prefer Desjardins or Royal Bank, our partner brokers will find you THE best mortgage loan in a purely objective manner.

Start comparing now to save big!

COMPARE 20+ BANKS IN ONLY ONE STEP FOR YOUR MORTGAGE!

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