Compare The Best Mortgage Rates In Saskatoon

Your Guide To Getting The Best Mortgage Rates In Saskatoon

On your hunt for the best mortgage rates in Saskatoon, one fact that you need to keep in mind always is that is your one-stop shop for the best mortgage rates in Saskatoon. You can depend on us to provide you with everything you need to successfully navigate mortgages in any market as well as give you access to the best mortgage rates in Saskatoon upfront.

About Saskatoon

Saskatoon is located in Saskatchewan, and the city can be found straddling the South Saskatchewan River. 

The Wanuskewin Heritage Park is located along the riverside Meewasin Trail towards the north, with several exhibitions on display having roots in indigenous culture. The southern stretch of the trail sees native wildlife whose habitats are in the prairie grasslands of Beaver Creek Conservation Area.

The city ranks as the largest in the province, with a population of 325,000 people.

Compare Saskatoon Mortgage Rates

Below is a table displaying the best rates from the five largest banks in the country. You can easily compare the rates offered by major Canadian lenders and banks, including TD Bank, RBC, CIBC, HSBC, and Scotiabank. We take care of the research to guarantee you the lowest possible rates upfront every time.

Compare Big Bank Rates In Saskatoon

It can be time-consuming and frustrating to compare rates by yourself. With us, you can find everything you need in one convenient location. Also, ensure that you consider the mortgage product term length and type when comparing rates. For instance, if you are in the market for a fixed-rate mortgage, it is essential to examine the range of terms given by various banks, such as three-year and five-year offerings, and not just the interest rate.

About The Saskatoon Housing Market

Although early 2022 saw an ease in Saskatoon home sales, inventory remained at extremely low levels. There was marked stability in prices from the end of 2021 into 2022. Projections show that demand would likely stay strong through 2022, particularly if the city doesn’t see an increase in new listings. 

As of February 2022, a detached home in Saskatoon has a benchmark price tag of $362,100. 

As of February 2023, the average Saskatoon home price was up by 3.3% compared to February of last year.

Saskatoon Closing Costs

Closing costs cover a broad spectrum of various charges that are linked with your mortgage deal, and they typically comprise all the administrative and legal payments that you would have to make up to the point where you close on your home. Budgeting for these costs is vital because, in most scenarios, they are separate payments that cannot be rolled into mortgage payments. 

The property type you purchase is what determines the closing costs you would be paying. However, a good estimate to work with would be about 5% of the property price. The actual range usually comes in around 3-5%. However, it is a good call to set aside more money than you would need. You can use the leftover balance for various purposes, including decorating and furnishing your new home. You can also set some aside to use for home maintenance. You really cannot over save.  

Saskatoon First-Time Homebuyer Rebates

Saskatchewan has various first-time home buyer programs and incentives that are in place to help homebuyers reduce the costs that they have to bear. The programs would help fund your down payment, which is the major financial burden in a home purchase as well as cater to some of the other home purchase costs. See: First-Time Home Buyer Programs in Canada

Saskatoon Mortgage Brokers

If you have plans to buy a home in Saskatoon, 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 is that an open mortgage typically has higher interest rates. In essence, you would not get the lowest mortgage rates in Saskatoon or even the best mortgage rates in Saskatoon.

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 payment 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 Saskatoon, your interest rate stays unchanged through the entire term of your mortgage (1 to 10 years). Similarly, the most common choice Canadian homeowners make is the five-year fixed-rate mortgage, like the 5-year rates in Saskatoon. However, in spite of its widespread popularity, this does not necessarily imply that it is the most ideal one.  

Variable Interest Rate Mortgages

A variable interest rate sees fluctuations throughout the term; increases or decreases depending on benchmark rates. If you opt for variable mortgage rates in Saskatoon, you could end up with a lower rate overall 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, despite variations in interest rate, the payment on your Saskatoon mortgage remains the same over time. 

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

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

Finally, in the event that market interest rates rise to a specific percentage or trigger rate, your payments may be increased by your lender. This incremental increase in payment is to ensure that you are still able to 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 their 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. This way, you would be able to tell the portion of the principal you would have paid when the term of your Saskatoon mortgage ends.

What Affects My Mortgage Rate In Saskatoon? 

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 Saskatoon. 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 Saskatoon 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 Saskatoon. 

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 Saskatoon 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 Saskatoon 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 Saskatoon.

For open vs closed mortgages, you should note that open mortgages would feature higher mortgage rates in Saskatoon 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 Saskatoon offer in that your payments are fixed, some people may opt for this even though variable mortgages like 5-year variable rate Saskatoon 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 Saskatoon. 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 Saskatoon 

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 Saskatoon

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

Why compare Saskatoon mortgage rates on Compare Mortgages?

Comparing mortgage rates in Saskatoon on Compare Mortgages guarantees that you get the most recent rate information, which can effectively help you save on your mortgage throughout your homeownership journey. 

When you are comparing mortgage rates in Saskatoon, ensure that you evaluate similar mortgage types (variable rate vs fixed rate) and terms (three or five years) so that you are not simply looking at rates; you are comparing similar products.

Mortgage rates and features see variations based on the specific lender, therefore, you would only get a clear comparison by evaluating similar offerings. 

Are Saskatoon mortgage rates higher than other cities?

Saskatoon mortgages today would see variations based on the lender or bank offering the product. With Compare Mortgages’ advanced technology, we get an accurate overview of the entire market at any point in time to guarantee that you always have access to the most current mortgage rates in Saskatoon. This way, you are able to make guided decisions about whether to leave your rate or lock it in. 

Should I get a fixed-rate or variable-rate mortgage in Saskatoon?

The choice of a variable rate, like the 5-year variable rate in Saskatoon or the fixed-rate mortgage hinges on how much risk you can tolerate and your level of comfort. 

If you have a preference for being able to know ahead how much mortgage payments you would be making monthly, then a fixed rate would be a good call, given that payments remain the same. A fixed-rate remains the same through the term that you select (1-10 years).