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Rates in Saskatchewan

Your Guide to Getting the Best Mortgage Rates in Saskatchewan

When you’re looking to find the very best mortgage rates in Saskatchewan, nesto is your one-stop shop. You can always rely on us to help you better understand how to navigate mortgages in any kind of market and provide the very best interest rate upfront.

About Saskatchewan

Saskatchewan is a Canadian Prairie province that’s bordered on the west by Alberta, on the north by the Northwest Territories, on the north-east by Nunavut, on the east by Manitoba, and on the south by the US states of Montana and North Dakota. Grassland covers its southern plains, and to the north are the rugged rock of the Canadian Shield plateau, coniferous forests, rivers and lakes.

Key facts about Saskatchewan:

• Regina, the provincial capital and second-largest city, is home to the Royal Saskatchewan Museum, with exhibits on natural history and the people of Canada’s First Nations
• The province’s largest city is Saskatoon
• There are 70 First Nations in Saskatchewan with Cree, Dakota, Dene (Chipewyan), Nakota (Assiniboine) and Saulteaux people. Cree is the second most spoken language in the province with over 20,000 native speakers
• Nearly 10% of Saskatchewan area is fresh water, composed mostly of rivers, reservoirs, and the province’s 100,000 lakes
• Saskatchewan has two national parks and about 40 provincial parks
• Saskatchewan has 100 km of sand dunes – the most northerly in the world along the south shore of Lake Athabasca. There are more dunes up to 25 m high in Great Sand Hills in SW Saskatchewan

Learn About Rates & Mortgages in Saskatchewan

Welcome to our Frequently-Asked Questions (FAQ) section, where we answer the most popular questions our nesto advisors receive on a daily basis across Saskatchewan, designed to help you make informed mortgage decisions every time you need a new mortgage or to renew/refinance an existing one.

About the Saskatchewan Housing Market

With housing demand still outpacing supply, the sellers’ market is likely to continue in much of the province throughout 2022. Saskatchewan set a housing sales record in 2021: the 17,387 sales far surpassed the previous record set in 2007 by 17%.

First-Time Home Buyer Programs in Saskatchewan

There are several first-time home buyer incentives and programs available in Saskatchewan that were designed specifically to help lighten the financial burden for first-time home buyers. These programs will offset some home buying costs as well as help fund your down payment, which is often one of the biggest hurdles involved in buying your first home. See: First-Time Home Buyer Programs in Canada

What are the Different Types of Mortgages?

Open VS Closed Mortgage

With an open mortgage, you’re able to prepay any amount of your mortgage at any time without facing a prepayment penalty. The compromise for having an open mortgage is that interest rates are higher to make up for the flexibility of being able to pay it off at any time.

With a closed mortgage, on the other hand, the interest rate is more attractive than a closed mortgage because you’re limited by how much extra you can pay towards your mortgage each year. So, the compromise here is that you’ll face a prepayment limit. This means that you’re only permitted to pay a certain percentage of your original or current balance per year – often 15%, on average, but this varies between lenders. If you have the choice, be sure to always opt for the original balance prepayment option as it will enable you to pay off more in a year. And if you choose to pay more than your annual limit, you’ll receive a prepayment penalty. It’s important, therefore, to be aware of your limits and stay within them.

Fixed Mortgages

Fixed-rate mortgages make up 70% of all mortgages in Canada. A fixed-rate mortgage keeps your interest rate steady over the term of your mortgage (1-10 years). There’s no doubt that the five-year fixed-rate mortgage is the most common choice selected by Canadian homeowners. But, this isn’t the best option for everyone, regardless of its popularity. Fixed-rate mortgages appeal to homebuyers who are looking for a dependable payment schedule, manage a tight monthly budget or are generally more conservative. For instance, Millennials with large mortgages relative to their income may be better off opting for the peace of mind provided by a fixed rate and payments.

Variable interest rate mortgages 

A variable interest rate can increase and decrease during your term. If you choose a variable interest rate, your rate may be lower than if you selected a fixed rate.

There are two types of variable mortgages: a) Variable rates with Fixed payments and b) Variable rates with Adjustable payments

Fixed payments with a variable interest rate

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

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

If the interest rate goes down, more of your payment goes towards to the principal. This means, you pay off your mortgage faster.

That being said, if the market interest rates increase to a certain percentage or trigger point, your lender may increase your payments. This payment increase will make sure that you pay off your mortgage by the end of the amortization period. The trigger point is listed in your mortgage contract.

Adjustable payments with a variable interest rate

With adjustable payments, the amount of your payment changes if the interest rate changes. A set amount of each payment applies to the principal. The interest portion changes as the interest rates change. You’ll know in advance how much of the principal you’ll have paid at the end of the term.

Land transfer tax in Saskatchewan

Saskatchewan doesn’t charge land transfer taxes, which is the case for other provinces. But Saskatchewan does charge several smaller closing fees collected by your lawyer. When a piece of land is bought in Saskatchewan, its title must be registered showing its location and owner. Saskatchewan charges a much smaller fee on the registration of the buyer’s title called a land titles fee. You can also expect to pay a flat fee upon registering a mortgage and other documents.

What Affects My Mortgage Rate in Saskatchewan? 

Factors such as credit score and income play a big part in qualifying for the lowest interest rate in Saskatchewan. The riskier a borrower appears, the higher the interest rate can be. Rate is definitely not the most important aspect of a mortgage, however, as many rock-bottom rates often come from no-frills mortgage products. In other words, even if a borrower qualifies for the lowest rate, they must often give up other features such as prepayments and porting privileges when opting for the lowest-rate product.

There are many other ways to save money over the mortgage term instead of taking the lowest rate, including rounding up mortgage payments or making lumpsum payments when bonuses, etc are received throughout the year. It’s important, however, not to exceed the allowable limit on annual extra payments with your lender.

Down Payment

The size of your down payment will determine whether you must also pay mortgage default insurance in addition to your regular mortgage payments. Mortgage default insurance is required any time you make a down payment that’s less than 20% of the property’s value.

Amortization Period

If you select a longer amortization period (the maximum is 25 years on mortgages with less than a 20% down payment and 30 years on mortgages with down payments of 20% or higher), your individual mortgage payment will be lower because they’re spread out over a longer period of time. Longer amortizations can come equipped with higher interest rates. You’ll also pay more interest the longer you take to pay off your mortgage.

Property Usage

If you’re buying a home that you personally intend to live in, this is considered your primary residence and is known as owner occupied. If you’re buying an investment property that you intend to rent to others, you’ll pay higher interest rates than on your primary residence. The logic behind this is that people will pay the mortgage on their primary residence before any rental properties. As such, lenders build added risk into the rates for rental properties.

Mortgage Type

The type of mortgage you select – such as variable vs fixed and open vs closed – will play a role in your mortgage rate. Each selection is a personal choice based on a number of factors.

When looking at open vs closed mortgages, for instance, it’s important to note that open mortgages are priced higher because of the flexibility they offer to pay the mortgage off at any time without facing a penalty.

And while variable mortgages have proven to be more cost effective over time than fixed mortgages, some people prefer the certainty of having the same payment throughout the mortgage term as is the case with fixed mortgages.

Your Credit Score

The ideal candidate for a traditional mortgage lender has a credit score that’s 680 and above. The higher the score is above 700 the better – with a maximum score of 900 possible – as borrowers will qualify for the lowest rates. There are options available for people with lower scores as well, but you can expect rates to be higher and terms to be shorter in these circumstances. nesto has strict lending guidelines that require a minimum credit score and no recent missed payments too.

How nesto Works

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Globally, a mortgage professional knows the market’s best rates every time they check their email. Only a few of them will give you that rate without making you work for it. nesto’s here to change the industry for this very reason. You always get the best rate upfront with nesto.