Mortgage rates in Saskatchewan
The big five Canadian banks, together with mid-sized schedule one banks, regional credit unions, mortgage finance companies, and mortgage brokers, make up a strong mortgage lending market in Saskatchewan.
Most mortgages in Saskatchewan are fixed rate loans with closed terms. The average mortgage size is much smaller compared to the other regions in Canada, with the average price of a home costing about $280.000, well below the national average.
What's the difference between fixed rate and variable rate mortgages in Saskatchewan?
The majority of mortgages in Saskatchewan are fixed rate loans. Fixed rate mortgages offer predictability. During the duration of your mortgage term, the interest rate on your mortgage will remain constant; you'll know what your mortgage payments will be every month.
Variable rate mortgages tend to have lower interest rates compared to fixed rate mortgages, but that can change during the mortgage term. So long as the Bank of Canada maintains low interest rates, variable rate mortgages will seem more cost effective. However, if banks start raising their prime lending rates, the interest rate and borrowing cost on a variable rate mortgage will also increase.
In Saskatchewan, most mortgages are fixed rate loans. The stability and peace of mind a fixed rate mortgage offers is hard to dismiss. In Saskatchewan's largest city, Saskatoon, 83.7% of mortgages are fixed rate. In the province's capital, Regina, 87% of mortgages are fixed rate, which is the highest amongst all major Canadian cities.
Outside of Saskatchewan's urban centers of Saskatoon and Regina, 80.2% of mortgages are fixed rate loans. Overall, Saskatchewan has the highest proportion of mortgages that are fixed rate.
What's the difference between an open term and closed term mortgage?
The type of mortgage term a prospective borrower chooses is an important consideration to make. The two main types of mortgage terms are closed and open. Closed term mortgages are much more common than open term mortgages.
Closed mortgages tend to have lower interest rates than open term mortgages. However, the lower interest rates, on a closed term, come with restrictions on your ability to make extra payments towards your mortgage.
On the other hand, open term mortgages have no limits as to how much in extra payments you can make on your mortgage. In other words, open term mortgages have no prepayment restrictions. The more flexible nature of open term mortgages is made up for with higher interest rates in comparison to a closed term mortgage.
Saskatchewan land title registration fee
Saskatchewan does not levy a land transfer tax on real estate purchases. However, they do charge a land title registration fee that the buyer of a property must pay.
Relative to other provinces, Saskatchewan's "land transfer tax/fee" is amongst the lowest in Canada. Most other Canadian provinces charge a higher overall dollar amount to purchase residential property.
Saskatchewan's land title registration fee is calculated based on the value of the property being purchased. The fee is calculated as follows:
- $0 if the value of the property is $500 or less
- $25 fee if the value of the property is above $500 and less than $8,400
- 0.3% of the value of the property, if the property is valued at $8,400 or more
As an example, if you purchased a house for $260,000, you would have to pay a land title registration fee of $780 ($260,000 x 0.3%).
Saskatchewan does not offer any first time homebuyer rebate or incentive on the land title registration fee. Anyone purchasing a house, condo, or townhouse in Saskatchewan must pay the same fee regardless of any previous property buying experience.
Saskatchewan housing market
Saskatchewan has a strong tradition of homeownership and being fiscally conservative. Because of this, Saskatchewan's housing market has remained stable. The province has not seen the same level of price volatility as other Canadian provinces.
The average house price in Saskatchewan is $280,000, with 74.1% of households owning the home they live in. Out of the households that do own their own home, 53.5% of them have completely paid off their mortgage, which is the highest percentage of homeowners who live mortgage-free amongst all Canadian provinces.
Saskatoon housing market
With a population of 273,000, Saskatoon is Saskatchewan's largest city. 61% of families in Saskatoon own their own homes, with the average price of a house costing $290,000.
Regina housing market
Regina is the capital city of Saskatchewan. With a population of 228,000, it's just behind Saskatoon as being one of the most populous cities in the province.
Since 2015, real estate prices in Regina have dropped 15%, with the average price of a home costing $252,000 and homeownership rates hovering at around 62.9%. The stagnant real estate prices in Regina is mostly attributed to the large supply of housing available in the province.
Saskatchewan mortgage brokers
Mortgage brokers can help you find a home financing option to best fit your financial situation. Brokers have access to the volume discounts offered by many mortgage lenders, making finding a great mortgage rate more streamlined and cost effective.
The mortgage industry in Saskatchewan is regulated by the Financial and Consumer Affairs Authority of Saskatchewan (FCAA). The FCAA is responsible for regulating the financial and consumer marketplace in the province.
Anyone who wishes to become a licensed mortgage broker, in Saskatchewan, must meet the requirements set forth by the FCAA. These requirements include educational qualifications as well as work experience requirements.
With a population of 1.1 million residents, Saskatchewan is Canada's 6th largest province by population. About half of the province's population lives in the provincial capital of Regina or the province's largest city, Saskatoon.
Saskatchewan's economy relies heavily on its natural resource based industries. Industries such as agriculture, farming, forestry, fishing, and hunting collectively make up almost 9% of the province's GDP.
The largest industry in the province is the mining and fossil fuel industries. Together, both industries comprise about 17% of Saskatchewan's economy, with the mining industry playing a more significant role. Saskatchewan is the world's largest exporter of uranium and potash and is home to a number of large mining companies.