Find The Best Mortgage Rates In Saskatchewan

Your Guide To Getting The Best Mortgage Rates In Saskatchewan

At comparemortgages.ca, we understand that securing a mortgage can be a big task, so our goal is to make the process as stress-free and straightforward as possible. Our team of experienced financial professionals are available to assist you in any market condition and will guide you through the process from start to finish. With access to hundreds of financial institutions and banks across Canada, we guarantee that you can always access the best rates Saskatchewan has to offer – no hidden fees and no surprises! Plus, with our easy-to-navigate website, looking for mortgaging options has never been simpler!

About Saskatchewan

Saskatchewan is a prairie province located in Western Canada, with a rich cultural history and some fascinating geography. The Royal Saskatchewan Museum in the provincial capital of Regina showcases the natural history and the unique cultures of the province’s 70 First Nations. Cree is the second most spoken language here, with about 20,000 native speakers. There’s no shortage of water either – freshwater covers over 10% of Saskatchewan’s land area through rivers and reservoirs, along with an incredible 100,000+ lakes! A truly awe-inspiring feature of this gorgeous province are the Athabasca Sand Dunes along Lake Athabasca – 100 kilometres of sand dunes as far north as you can get! Plus, two national parks and around forty provincial parks dot the landscape for plenty of opportunities to explore and experience true wilderness.

Compare Mortgage Rates in Saskatchewan

About The Saskatchewan Housing Market

With housing demand currently outstripping supply, the sellers’ market is expected to persist throughout the province until 2022. Saskatchewan established a home sales record in 2021, with 17,387 transactions exceeding the previous mark set in 2007.

The Bank of Canada (BoC) increases in its Key Policy Overnight rates in 2022 have temporarily limited the growth of mortgages in the province. Property prices are starting to decrease.  However, Saskatchewan’s property market remains resilient, and except for a few metro areas, prices have not dropped more than 20% thus far. 

First-Time Home Buyer Programs In Saskatchewan

In Saskatchewan, various first-time home buyer incentives and programs are available to help ease the financial burden on first-time homebuyers. . These programs can help you save money on your down payment, which is frequently one of the most difficult aspects of buying your first home. See: First-Time Home Buyer Programs in Canada

What Are The Different Types Of Mortgages?

Open vs. Closed Mortgage

For those looking to purchase property in Saskatchewan, it is important to know the differences between an open mortgage and a closed mortgage. An open mortgage allows you to prepay any amount at any time without paying a prepayment penalty.  On the other hand, a closed mortgage does not allow for such flexibility. Generally, closed mortgages come with lower interest rates, making it ideal for those wanting to lock in a rate that suits their current financial situation. 

Fixed Mortgages

Of all the mortgages in Canada, fixed-rate mortgages typically are the most popular. With a fixed-rate mortgage, your interest rate stays unchanged through the entire term of your mortgage (1 to 10 years).  Fixed-rate mortgages can be a good idea for conservative homebuyers working with a tight monthly budget or having their eyes set on a stable payment schedule. 

Variable Interest Rate Mortgages

A variable interest rate sees fluctuations throughout the term, increasing or decreasing depending on benchmark rates. 

There are two versions of variable interest rate mortgages:

1. Variable rates with adjustable payments 
2. Variable rates with fixed payments

Fixed Payments With A Variable Interest Rate

In general, under this option, the payment remains fixed over time despite variations in the interest rate.

If the interest rate increases, more of your payment goes towards the interest and less to the principal.

If the interest rate decreases, more of your payment goes toward the principal. This means you pay off your mortgage faster.

Adjustable Payments With A Variable Interest Rate

Adjustable payments, true to their name, have payment amounts changing as interest rates in Saskatchewan change. A fixed portion of the payment goes to the principal. As interest rates change, the monthly payment increases or decreases with changes to your lender’s prime rate. 

Land transfer tax In Saskatchewan

Saskatchewan does not levy land transfer taxes, as other provinces do. However, Saskatchewan does impose several modest closing costs, which your lawyer collects. When purchasing land in Saskatchewan, the title must be registered to identify the location and owner. Saskatchewan levies a land title fee, called a Land Title Transfer (LTT), which is  0.30% on purchases valued over $8,400. When registering a mortgage and other documents, a fixed fee will also be charged.

What Affects My Mortgage Rate In Saskatchewan? 

Getting the lowest interest rate in Saskatchewan depends heavily on factors like credit score and income. The riskier the borrower, the greater the interest rate could be due to these factors. However, given that no-frills mortgage packages frequently provide rock-bottom mortgage rates in Saskatchewan, it is undoubtedly not the most crucial factor in a mortgage. In other words, even if a borrower is eligible for the lowest rate, choosing the lowest-rate program frequently requires them to forego other advantages like prepayments and porting rights.

Instead of choosing the lowest mortgage rates in Saskatchewan, there are several alternative options to save money throughout the course of the mortgage, such as rounding up mortgage payments or making lump sum payments as bonuses or other income is received during the year. It’s crucial, nevertheless, to stay under your lender’s permitted yearly maximum for additional payments.

Down Payment

Whether you will pay default insurance in addition to your normal mortgage payments depends on the amount you put in for your down payment. If you put down less than 20% of the purchase price, mortgage default insurance is necessary.

Amortization Period

Having a longer amortization term means your individual mortgage payment will be reduced since they are spread out over a lengthier period of time (the maximum is 25 years on mortgages with less than a 20% down payment and 30 years on mortgages with 20% or higher down payments). Higher interest rates in Saskatchewan might accompany longer amortizations. As your mortgage is paid off over a longer period of time, you will pay more in interest.

Property Usage

Purchasing a property that you plan to occupy is referred to as owner-occupied and is understood to be your primary dwelling place. Borrowers will usually pay higher interest rates in Saskatchewan than they would on a personal home if you’re purchasing an investment property to rent. People often pay the mortgage on their principal property before any rental properties due to the rationale behind this. This is why lenders thus include more risk in the rates for rental properties.

Mortgage Type

Your mortgage rate will depend on the type of mortgage rates in Saskatchewan, which is either variable vs. fixed and open vs. closed. Each option is an individual decision based on several considerations.

For example, while comparing open and closed mortgages, it’s crucial to keep in mind that open mortgages are more expensive due to the freedom to pay the loan off at any moment without incurring fees.

While fixed mortgages, such as the 5-year fixed rate in Saskatchewan, have historically been more expensive than variable mortgages. Some borrowers still prefer the security of knowing their payment would remain the same over the course of their mortgage.

Your Credit Score

A credit score of at least 680 is required to be considered by mortgage lenders in Saskatchewan. In order to qualify for the lowest rates, borrowers’ scores should be at least 700 points, with a maximum score of 900. There are choices available for those with lesser scores as well, but you can anticipate higher interest rates in Saskatchewan and shorter durations in these cases.

How Compare Mortgages Works

Our mortgage advisors are usually rewarded based on customer satisfaction with the service rendered. We’re always available to help you reach your goal of owning a home while guiding you through the uneasy home financing process. 

Generally, mortgage professionals who work with borrowers are aware of the best mortgage rates in Saskatchewan. However, only a few will give you that rate without making it a hassle. Here at Compare Mortgages, we are working to change the industry and its ideologies while providing the best rate upfront.

Learn About Rates & Mortgages In Saskatchewan 

Our Frequently Asked Questions (FAQ) section is here to help you make educated decisions on the best mortgage rates in Saskatchewan every time.