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The Best Mortgage Rates in Saskatchewan

Compare mortgage rates in Saskatchewan to find the best mortgage for your home buying needs.

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Nerdy Insight: The best mortgage rates in Saskatchewan got a little better on June 5, when the Bank of Canada finally lowered its overnight rate. Variable mortgage rates should soon decline by 0.25% across the country. Current activity in the government bond market doesn’t indicate that any sudden spikes or dips in three- or five-year fixed mortgage rates are on their way. These two popular options are still below 5% at many lenders.

The best fixed and variable mortgage rates in Saskatchewan

Rates updated:

Showing 7 of 40 results

Term

Lender

Rate

Monthly Payment

 

6 Months Fixed Rate


Marathon Mortgage

4.54%

$2,500.64

5 Year Fixed Rate


B2B Bank

4.89%

$2,589.12

5 Year Fixed Rate


First National Financial

4.89%

$2,589.12

5 Year Fixed Rate


Marathon Mortgage

4.94%

$2,601.87

3 Year Fixed Rate


Scotiabank

4.94%

$2,601.87

5 Year Fixed Rate


Scotiabank

4.94%

$2,601.87

5 Year Fixed Rate


MCAN Home – Precision Prime for Insured

4.94%

$2,601.87

Disclaimer: The rates displayed do not include any taxes, fees, insurance, or other additional charges. These rates are estimates and are not guaranteed. The actual rate and loan terms you receive will depend on our partner’s assessment of your creditworthiness, loan amounts, and other relevant factors. Please note that any potential savings figures provided are estimates based on the information you and our advertising partners have provided. Terms and conditions apply.
Mortgage Brokerage licensed in ON #13072, AB, BC #X300983, MB, NL, NB #210042526, NS #2023-3000270, PE, QC #606914, SK #508695, YT

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Saskatchewan mortgage rate update: June 2024

There’s finally some good news for variable-rate mortgage shoppers in Saskatchewan: On June 5, the Bank of Canada lowered its overnight rate by 0.25%. When the overnight rate dips, so do variable mortgage rates, so the Bank’s rate cut should soon be reflected in lenders’ variable-rate mortgage offers. 

Fixed mortgage rates are holding steady in Saskatchewan. As of June 5, 2024, five-year fixed mortgage rates remain below 4.7% at some lenders, while three-year fixed mortgage rates can still be found for around 4.9%.

Recent activity in the government bond market doesn’t indicate that any major fluctuations are waiting around the corner for Saskatchewan home buyers. The yields on three- and five-year bonds have bounced around a bit, but not so much that lenders have adjusted their rates by more than a few basis points here and there.

Historical Trend: New mortgage loans in Saskatchewan

The average mortgage rate in Saskatchewan

There’s not much value in calculating the average mortgage rate in Saskatchewan since it would include every mortgage type and term length from every lender, including the above-average rates associated with open mortgages and private mortgages. 

The only rates that matter are the ones attached to the mortgage you hope to be approved for. If you’re interested in a variable-rate mortgage, for example, compare variable mortgage rates. If you’re looking for more stability, compare fixed rates according to term length. Specific comparisons like these will give you more relevant information to work with. 

Your mortgage rate will ultimately be determined by your finances, so it doesn’t really matter what other people are paying. 

2024 Saskatchewan mortgage rate forecast

Variable mortgage rates

After the Bank of Canada’s decision to lower its overnight rate on June 5, variable mortgage rates are finally set to drop a bit. A reduction in the overnight rate typically leads to an identical decline in lenders’ variable rates. 

How many times variables dip in the last half of 2024 remains to be seen. The Bank of Canada will be cautious about cutting the overnight rate too quickly, which could trigger another rise in inflation. Another two modest cuts by year end is a reasonable expectation.

Fixed mortgage rates

Because they’re driven by lenders’ reactions to activity in government bond yields, fixed mortgage rates can be difficult to predict over the long-term.

Based on May 2024’s relatively neutral bond yields, for example, lenders have no need to increase their three- and five-year fixed rates. With mortgage demand as soft as it is, lenders are likely hesitant to raise rates and give potential home buyers a reason to stay on the sidelines.

Fixed mortgage rates could be somewhat lower by the end of 2024, but it’s unlikely that they’ll fall significantly below 4.6%. 

Mortgage calculators to inform your home buying decision

Saskatchewan housing market update

Average home prices in Saskatchewan

In April, average home prices rose in Saskatchewan. The benchmark price in the province was $339,800 in April, up about $5,000 since last month.

Saskatchewan home sales and price forecast

Expect prices and sales in Saskatchewan to continue rising at a steady pace in 2024.

As one of Canada’s most affordable places to live and own property, Saskatchewan should continue attracting new residents, both from other provinces and other countries, which will keep pressure on provincial housing stock.

Low prices and high rents are also attractive to real estate investors, who may covet properties in Regina and Saskatoon for their profitability. The more properties that get snapped up by investors, the tighter the market will become.

Saskatchewan first-time home buyer programs

There aren’t many provincial programs available to eligible first-time home buyers in Saskatchewan. Two of the only ones still available are:

First-timers in Saskatchewan can also make use of federal programs like the Home Buyers’ Plan and the First Home Savings Account

Land transfer taxes in Saskatchewan

Saskatchewan doesn’t charge home buyers a land transfer tax. Instead, home buyers must pay two registration fees as part of their closing costs:

Guide to Saskatchewan mortgage rates

Types of lenders in Saskatchewan

Mortgage lenders in Saskatchewan tend to fall into four categories, which include:

Types of mortgages in Saskatchewan

Fixed-rate mortgages

With a fixed-rate mortgage, the rate stays the same for the duration of the mortgage term, even if rates fluctuate.

Fixed rates provide certainty, which can make them easier to budget around than variable mortgage rates. That certainty comes at a price, though: Outside a few exceptions, fixed rates have historically been higher than variable rates.

Variable-rate mortgages

Variable mortgage rates rise or fall depending on which direction your lender’s prime rate moves. Depending on the state of the economy, a variable rate can increase or decrease multiple times during a mortgage term. 

Variable rates are risky, which is why they’re typically lower than fixed rates. In a high-inflation environment, when lenders’ prime rates are driven upward by increases to the Bank of Canada’s overnight rate, variable mortgage rates can skyrocket. 

» MORE: The difference between fixed- and variable-rate mortgages

Hybrid-rate mortgages

If you take out a hybrid-rate mortgage, a portion of your mortgage is subject to a variable rate and another portion is at a fixed rate of interest. Hybrid mortgages can dampen the impact of fluctuating interest rates in a particularly turbulent economy, but they tend to be more difficult to transfer between lenders.

Insured and uninsured mortgages

If you buy a home for under $1 million, and your down payment is less than 20% of the purchase price, you must purchase mortgage default insurance, which adds to the cost of your loan. In these cases, you’ll be getting an insured mortgage.

If your down payment is greater than 20%, or you’re buying a home where a 20% down payment is required, like an investment property or a home worth $1 million or more, insurance is not required. In this scenario, you’re getting an uninsured mortgage. 

Insured mortgage rates tend to be lower than uninsured mortgage rates. 

Short-term and long-term mortgages 

Short-term mortgages typically last five years or less. Long-term mortgages last over five years. With a shorter term, you’ll need to renew your mortgage sooner, which can provide flexibility, but it can also increase risk if rates are trending upward as your renewal date approaches. 

Closed and open mortgages 

The primary difference between closed and open mortgages is that you can pay off an open mortgage whenever you like and not pay a penalty. If you have a closed mortgage and make additional payments that go beyond your pre-payment allowances, you’ll be penalized for breaking your mortgage.

Closed mortgages often offer better rates than open mortgages. But an open rate mortgage may be a good option if you think you may be able to pay off your mortgage early.

» MORE: Understanding open and closed mortgages

How Saskatchewan lenders determine mortgage rates

The mortgage rate you’re offered by a lender in Saskatchewan will be based on two primary factors; one based on the state of the economy and one based on your financial situation.

Economic factors

Variable mortgage rates are influenced by the Bank of Canada’s overnight rate. When the overnight rate increases or decreases, a lender’s prime rate follows suit. Variable mortgage rates are based on a lender’s prime rate, so as the prime rate rises or falls, so do variable rates

Fixed mortgage rates are determined by activity in the government bond market, particularly the yields on one-, three- and five-year bonds. Fixed mortgage rates follow the movement of those yields. 

Your financial situation

Factors specific to you also affect the rates you’re offered. These include:

Lenders look for signs of risk when assessing these aspects of your finances. The riskier they perceive you to be as a borrower, the higher the rate they’re likely to offer you.

How to qualify for a lower mortgage rate in Saskatchewan

Some of the mechanisms that shape rates are beyond your control, but there are steps you can take to convince lenders to offer you the best mortgage rates. For example, you can try:

Factors that affect mortgage affordability in Saskatchewan

A home’s price and the rate you’re offered aren’t the only factors that affect how much mortgage you can afford. You’ll also have to account for the following components, which play a role in all mortgages.

Debt service ratios

Lenders use debt service ratios to determine how much of your income goes toward paying debt. If those ratios are too high, you may not qualify for the mortgage amount you need.

Car loans, credit cards and lines of credit are all examples of debt that require regular payments. Decreasing some of these balances, or relying less heavily on credit, can help you lower your debt service ratios. 

The mortgage stress test

You will have to pass the mortgage stress test if you want a home purchase funded by a federally regulated financial institution.

The rules of the stress test say you must qualify for a mortgage at a minimum qualifying rate of either 5.25% or the rate you’re offered plus 2%, whichever is higher. If a lender offers you a rate of 5%, for example, you’ll have to demonstrate you can afford the same mortgage at 7%.

You may be able to avoid the stress test if you apply for a mortgage with a lender that is not federally regulated, like a credit union.

Your down payment

Your down payment is a critically important factor in determining mortgage affordability. The more you can put down, the less you’ll need to borrow. Your monthly mortgage payment will likely be smaller, and you’ll pay less in interest. 

Mortgage term

The term is the length of time your mortgage contract is valid. In Canada, mortgage terms can run anywhere from six months to as long as 10 years.

Chances are that your mortgage will have multiple terms during the amortization period until you pay it off in full. Once your mortgage term ends, you can pay your loan off in full, renew it or refinance it.

Amortization period

A mortgage’s amortization period is the time it will take to pay off the loan in full. In Canada, the most common amortization period is 25 years. If your down payment is less than 20%, you can’t have an amortization beyond 25 years. 

If your down payment is greater than 20%, you may find some lenders willing to offer amortization periods of up to 35 years.

Why would you want a longer amortization period? The longer your mortgage lasts, the smaller your monthly payment will be. You’ll pay more in interest, but that might be a worthwhile trade-off if it helps you keep your home.

How to compare mortgages from Saskatchewan lenders

Use APR for greater accuracy

The annual percentage rate (APR) includes fees and closing costs the lender may charge in addition to the interest rate. A lender offering the lowest rate may actually have a higher APR due to those additional costs. Comparing APRs is the easiest way to see the complete cost of each offer.

Compare similar mortgages

For a comparison to be useful, the mortgages should have the same term, amortization period and payment frequency. 

When looking for the best mortgage rates in Saskatchewan, also consider:

You can also compare mortgage rates in other provinces to get a sense of how the rate you’ve been offered in Saskatchewan stacks up:

Working with a mortgage calculator can help you compare different mortgages in a single place.

There’s more to mortgage shopping than the interest rate 

Scoring a low mortgage rate might be a home buyer’s prime motivation, but getting the lowest rate doesn’t necessarily mean you’re getting the best mortgage for your needs.

For example, you could opt for a fixed rate, which might cost more than a variable rate, if you’re more comfortable with the certainty that your rate won’t increase during the term.

Or, if you expect to come into a sizable sum of money soon (via an inheritance, for example), paying a higher rate for an open mortgage, which allows you to pay it off early without penalties, could be worth it.

Frequently asked questions about Saskatchewan mortgage rates

What are the current mortgage rates in Saskatchewan?

As of June 5, 2024, some lenders are offering both three- and five-year fixed rates below 5%. Shorter fixed terms and variable-rate mortgages will cost you more.

When will mortgage rates come down?

Significant declines in fixed mortgage rates won’t be seen until the Canadian economy stabilizes. That might not occur until late 2024. Variable rates started declining in June after the Bank of Canada lowered its overnight rate. Variable rates aren’t like to fall at a rapid clip.

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