Best Mortgage Rates in Saskatchewan

Saskatchewan mortgage rate market

While the Bank of Canada may still be in rate-raising mode, consumers would be wise to shop around for the best Saskatchewan mortgage rates possible.

• Usings sites like RATESDOTCA is a great first start as it provides up-to-date comparisons and can connect you to a brokerage at the click of a button.
• Talk to your real estate agent about options that suit your specific needs and financing.
• Speak to your current bank or lender if you have one to see how they can assist you and if they will offer the best mortgage rates in Manitoba.
• In general, the better your credit, the more likely you will find the best mortgage rates in Manitoba. So, do what you can to improve your credit score by paying off credit card balances and other personal debts, to the extent you can.
• The interest rate is important, but there’s more to compare. Is there a prepayment penalty if you decide to refinance at some point? What are the total closing costs? Closing costs generally amount to 2% to 5% of the price of the home. If your home costs $150,000, expect to pay $3,000 to $7,500 in costs. That’s a big range, so it it would be wise of you to see what a lender typically charges.

Saskatchewan mortgage performance

^{Source: Canadian Bankers Association}

According to the Canadian Bankers Association, over the past 10 years, Saskatchewan homeowners have faced more challenges in paying their mortgages on time compared to other regions in Canada.

In mid 2019, the province's arrears rate stood at 0.86%, the highest in the nation. CBA noted that this totalled 1,118 mortgages in arrears for three or more months out of the 130,106 extant mortgages in Saskatchewan at the time.

To compare, the national average arrears rate in that period was 0.23%. The rate was just 0.14% in BC, 0.35% in Manitoba, and 0.5% in Alberta.

The major drivers of the phenomenon are believed to be the sustained low interest rate environment in the years after the 2008-2009 financial crisis plus the fact that many young buyers entered the housing market during this time.

Tips for first time homebuyers in Saskatchewan

First time homebuyers likely have questions given their inexperience and the complicated ins-and-outs of purchasing a home. First time homebuyers may want to consider the following tips:

• Budget: Figure out what you can comfortably afford before you look at too many “out-of-reach" options.
• Pay off debt: Deal with existing debt. If you have debts that can be paid off or paid down, look at those first to shore up your credit rating.
• Down payment: Before purchasing that first home, try to save up as much as possible for a down payment. The more you can provide, the less of a risk you are, which banks look favourably on.
• Take advantage: Use the First Time Homebuyers’ Tax Credit.
• Look at your needs today: That first home may be your forever home or it may be a starter home. Consider what your future housing needs are likely to be. It may inform the kind of home you are looking at and how much you want to spend versus save for a future purchase.
• Comparison shop: Use RATESDOTCA to compare mortgage rates and options for your financing needs.