Compare The Best Mortgage Rates In Regina

Your Guide To Getting The Best Mortgage Rates In Regina

Using Compare Mortgages, your search for the best mortgage rates in Regina just got easier because we are your one-stop shop. You can depend on us to boost your understanding of how you can navigate mortgages in any market condition as well as provide you with the best mortgage rates in Regina upfront.

About Regina

The Royal Museum in Regina, Saskatchewan’s capital, has exhibits of Canada’s native animals and Aboriginal people on display and is located in the Wascana Centre – a park that surrounds Wascana Lake. 

The MacKenzie Art Gallery is also located in the park and features art from both the local and global front. The Lakeside Saskatchewan Science Centre is also home to hands-on displays. 

The city is home to a population of about 193,000, and the RCMP center in Regina focuses on celebrating the Royal Canadian Mounted Police.

Compare Mortgage Rates in Regina

About The Regina Housing Market

The summer of 2020 saw the Regina housing market pick up pace very rapidly. Year-over-year sales went up as high as 51% in July 2020, and the average home price was around $315,000. 

The Canadian real estate industry saw record prices, and Saskatchewan felt some of the impact too. The record of MLS sales was broken in Regina with a total of 17,387 sales (indicating a 17% increment in sales relative to the market’s existing record set in 2007).

Post-COVID, the change that the Regina housing market experienced is comparable to some form of a Renaissance era. Q4 of 2022 will see the average price of a home go up to $376,000. When compared to the preceding year, this would be a 6.0% year-on-year increase. In addition, the aggregate price of a single-family detached property would go up to $408,100, and a condo going up to $208,000, indicating a 4% price increase. 

Presently, prices of a good number of property types in Canada are at an all-time high. However, for Regina, average costs are still relatively low compared to 2014 peak costs. This follows the rebound after a steady price decline from 2015 to 2019. 

Thankfully, the purchasing power of homebuyers has remained strong as a result of the low mortgage rates that have been prevalent for the past couple of years. Several home buyers now make much lower monthly payments and generally pay lower over their mortgage terms. Putting this side by side with the rates that were in place 5 years ago, this is an indication of some major progress. However, the fact that the present purchase price(s) for properties remains higher makes the situation surprising. 

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, Regina’s property market remains resilient, and except for a few metro areas, prices have not dropped more than 20% thus far. 

Regina Closing Costs

Closing costs are an umbrella term for various charges and fees that come up during the closing of your mortgage deal and typically comprise all administrative and legal expenses that you would have to cover leading up to or even on the day that you close on your home. Factoring these costs into your budget is vital because they often cannot be rolled into your mortgage payments. 

The payment range for closing costs varies based on the property you want to purchase; however, a good ballpark estimate to plan for would be 5% of the property’s purchase price. This would effectively serve as a buffer to cater to these expenses. Usually, the actual range is around 3-5% of the home’s cost; however, to be on the safe side, you should set aside more than you think you would need. If you have any surplus remaining, you can use it to decorate or furnish your new home, as well as earmark some to go for maintenance costs. You can never really save in excess.

Regina First-Time Homebuyer Programs

Regina has a significant number of first-time home buyer programs and incentives available in Saskatchewan that were implemented to reduce the financial burden of new home buyers. These programs can aid in funding your down payment, which is the major payment involved, as well as offset certain other homebuying costs. See: First-Time Home Buyer Programs in Canada

Regina Mortgage Brokers

If you have plans to buy a home in Regina, it would be an excellent call to deal with a professional who has a deep knowledge of the market to guide you through the city’s mortgage rates. Submit an application online right away, and one of our advisors would be more than happy to help you secure the best product choice to cater to your needs.  

What Are The Different Types Of Mortgages?

Open vs Closed Mortgage

An open mortgage allows for the possibility of prepaying any amount of your mortgage at any given time without having to deal with a prepayment penalty. The trade-off for this flexibility that an open mortgage provides is the higher interest rate. In essence, you would get the lowest mortgage rates in Regina or even the best mortgage rates..

On the flip side, a closed mortgage has a lower and more attractive interest rate, namely because the flexibility allowed in an open mortgage is missing here. Rather, there is a cap on the extra mortgage payments that you can make per year. So, here, there is a prepayment limit. This implies that you can only pay a specific percentage of your current or original balance annually – usually an average of 15%; however, there may be variations depending on the lender. If you are allowed to choose, ensure that you go for the option of original balance prepayment because it allows you to make more payments annually. Given that you would receive a prepayment penalty if you exceed your annual payment limit, it is essential to note these limits and remain within them.

Fixed Mortgages

Of all the mortgages in Canada, fixed-rate mortgages comprise 70%. With a fixed rate mortgage like the 5-year fixed rate in Regina, your interest rate stays unchanged through the entire term of your mortgage (1 to 10 years). The most common choice Canadian homeowners make is the five-year fixed-rate mortgage. However, in spite of its widespread popularity, this does not necessarily imply that it is the most ideal one. Fixed-rate mortgages can be a good idea for homebuyers who are conservative or are working with a tight monthly budget, or have their eyes set on a stable payment schedule. For example, Millennials who have a large mortgage-to-income ratio may opt for a fixed rate and payment for their mortgage refinance or mortgage renewal and enjoy the peace of mind that it brings.

Variable Interest Rate Mortgages

A variable interest rate sees fluctuations through the term, increases or decreases. If you opt for variable mortgage rates in Regina, you could end up with a lower rate over time than if you had opted for a fixed rate.

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

For this option, in spite of variations in interest rates, the payment on your Regina mortgage remains the same over time. 

If there is a reduction in the interest rate, more of your payment goes towards paying off the principal. This implies that your mortgage is being paid off faster.

If there is an increase in interest rates, the principal sees less payment going in its direction while a bigger portion goes towards interest payments.

Finally, in the event that market interest rates rise to your specified trigger rate, your payments may be increased by your lender. This incremental increase in payment ensures that you can pay off your mortgage within the amortization period. Your mortgage contract would have the specific trigger rate highlighted.

Adjustable Payments With A Variable Interest Rate

Adjustable payments, true to its name, has payment amount changing as interest rate sees changes. A fixed portion of the payment goes to the principal. As interest rates see changes, the portion going to interest sees a similar change as well. This way, you would be able to tell ahead of time the portion of the principal that you would have paid when the term of your mortgage ends.

What Affects My Mortgage Rate In Regina? 

Various factors all play a role in determining your mortgage rate. They include income, credit score, the purpose of the loan, and down payment. 

Variations in mortgage rates in Canada can be a result of various factors, including the borrower’s income capacity to service the debt, the borrower’s credit, the borrower’s capital in the form of savings/investments and down payment, as well as the conditions. Conditions such as the loan-to-value (LTV) ratio and the purpose of the loan are the two biggest determining factors for mortgage rates in Regina. The rate depends on the risk associated with the borrower, the mortgage, and the property. 

Getting the lowest possible rate is not always the most essential part of getting a mortgage that would help you save on interest. In certain cases, the lowest mortgage rates in Regina are the “restricted,” “no frills,” or “limited” mortgages that a lender offers. In addition to not featuring a high rate and prepayment privileges, features like assumability and portability could be unavailable too. 

Down Payment

How much you make as a down payment determines your loan-to-value (LTV) ratio. Your LTV is the paramount factor in mortgage rate pricing following the insured or insurable lending criteria. It also determines whether you would have to pay mortgage default insurance alongside your recurring mortgage payments on your mortgage. 

For properties that fall under the less than $1 million dollars valuation, insured and insurable mortgage rate pricing would apply, and the amortization is up to 25 years. In scenarios such as this, there is a lower risk of loss to the lender, and as such, they would offer better mortgage rates in Regina. 

In a situation where you make an insured purchase with less than a 20% down payment, you would have to buy insurance on the front end. To help lower your rate, lenders can choose to buy the insurance on the back end to reduce the mortgage default risk if you make a down payment of over 20%. 

If you make a down payment of less than 20% of the property’s value, you would be required to pay mortgage default insurance. 

Amortization Period

If you opt for a longer amortization period (mortgages with less than 20% down payment have a maximum period of 25 years, while mortgages with down payments of 20% or higher have a maximum period of 30 years), you pay a lower amount as a mortgage payment since it is spread out for a longer period. Generally, the longer you take while paying off your mortgage, the more interest you would have to pay.

Property Usage

Purchasing a home you intend to make your primary residence and live in is considered owner-occupied. Similarly, suppose you buy a primary residence that comes with a second separate legally registered suite. In that case, the property is regarded as an owner-occupied rental, and you would be able to access the best mortgage rates in Regina by it being a primary residence.

If you were purchasing a property you intend to rent to another, or more appropriately, an investment property, you would be saddled with higher interest rates in Regina relative to that of your primary residence. This is because lenders rationalize that people would prioritize paying the mortgage on their primary residence over a rental property. As a result, lenders tack on some additional risk for rental property rates.

Mortgage Type

Your choice of mortgage would also impact your mortgage rate – such as open vs closed or variable vs fixed. Others, such as standard charge, adjustable, or revolving home equity lines of credit (HELOCs) under the umbrella of a collateral charge, are options that would be explored on an individual basis. The choice of either option is personal and usually dependent on a number of factors.

Variable rate mortgages come in two forms, those that feature a constant payment and those that feature fluctuating or variable payments. Static payment variable rate mortgages are regarded as variable rate mortgages (VRM), while variable rate mortgages come with a variable payment, where payment changes on the basis of the lender’s prime rate are more accurately regarded as adjustable rate mortgages (ARM). In general, they are both referred to as variable-rate mortgages, such as the 5-year variable rate Regina.

For open vs closed mortgages, you should note that open mortgages would feature higher mortgage rates in Regina as a result of the flexibility that borrowers would enjoy since they can choose to pay off their mortgage anytime without having to face a penalty.

Similarly, thanks to the certainty that fixed mortgages like the 5-year fixed mortgage rates Regina offer in that your payments are fixed, some people may opt for this even though variable mortgages like 5-year variable rate Regina have been shown to be a better option in terms of cost-effectiveness.

Your Credit Score

Borrowers with a credit score of 680 and above are regarded as the ideal candidate for a traditional mortgage lender. The higher above 700 the score is – with a maximum score of 900, the better the chances of getting the best rates, such as the best mortgage rates in Regina. People with lower scores also have options available to them; however, these rates would tend to be higher and the terms shorter.

How To Apply For A Mortgage In Regina 

When you want to apply for a mortgage, you would be required to provide several documents to serve as proof of income and employment, a down payment, as well general finances that comprise a breakdown of debts and assets. 

Meet With A Mortgage Expert

A mortgage expert that would have your best interest at heart when navigating the variety of mortgage options available in the market would prime you for making a better decision compared to dealing directly with a single lender or bank. 

Acquire All Necessary Documents

Compiling most or all of the necessary documents prior to meeting with your mortgage expert would set you up for a rapid preapproval or final mortgage approval. 

Required documents include:

• Proof of Identity 
• Employment Verification
• Income Verification 
• Proof of Assets
• Confirmation of Down Payment
• List of Debts/Liabilities
• Purchase and Sale Agreement 
• Real Estate Listing
• Credit Report
• Mortgage Insurance Information
• Appraisal Report
• Property Insurance 
• Legal Representation 
• Survey of Property

Apply For Mortgage Financing

Once you have all the necessary documents you need available, your mortgage expert will easily identify the most suitable lender offering – including mortgage rate and features – that work best for your needs and then hand in the application to be approved. 

Sign & Finalize Your Mortgage

Prior to the closing date on your mortgage, you would need to review and sign all mortgage documents with your real estate lawyer to guarantee that the necessary funds are in place when you assume ownership of your new home. 

Learn About Rates & Mortgages In Regina

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