1 in 5 Saskatchewan residents struggling to keep up with mortgage payments: Expert
Current homeowners in the province have been struggling to keep up with mortgage payments as interest rates rise, according to a mortgage expert.
“The Equifax numbers nationally were around 11 per cent. More people right now are struggling with payments. Anecdotally, the amount of people that I'm dealing with right now, it sits at around one in every five people are trying to figure out how do they make payments for next month,” The Mortgage Group’s Conrad Neufeld told CTV News.
Housing sales in Saskatoon have dropped nearly 20 per cent and inventory levels have fallen below a 10-year average, according to the Saskatchewan Realtors Association.
It’s something that is causing trouble for home buyers and sellers alike, Neufeld said.
“Homebuyers, especially locally, are kind of in a bit of a bind in the sense that we're dealing with extraordinarily low inventory. So I have a ton of home buyers right now actively looking for a home but cannot for the life of them find one,” Neufeld said.
“Even sellers that are reaching out to us or potentially looking to refinance I'm like, ‘Why don't you just sell?’ and they'd say, ‘Well, where would we go?’ Right? Because getting inventory or finding houses is very difficult right now.”
He said most fixed-rate mortgages for new buyers were at 5.25 per cent while those looking to secure a variable mortgage can expect 6.50 per cent.
“If you're looking for longer terms, like five years, you're looking at somewhere under five per cent for high ratio mortgages.”
Those considering refinancing will likely face a higher rate, Neufeld said.
“As long as you're keeping the original mortgage amount, then you'll qualify for those as well. If you're looking to refinance, which means changing the existing terms either stretching out the amortization to make the payments more affordable or to change the dollar amount to add in money to compensate for things like lines of credit due to loans fees as that might be getting out of hand, then you're going to see a larger rate somewhere in the five and a half percent range.”
While the benchmark price increased to $372,400 in February, which is about three per cent higher than last year, Neufeld said those looking to buy should continue to hope for better days soon.
“There is some reason to believe that more inventory will hit the market sometime in spring and summer,” he said.
“It never hurts to start looking now and at least start benchmarking what you can afford compared to what's out there now, so that in the future when potentially another deal comes out or another house goes out on the market you have something to compare that to so you're like, ‘Oh, I know,’ you recognize what a good deal is. If you start looking now at least you're prepared.”
CTVNews.ca Top Stories
Trend Line Anger, pessimism towards federal government reach six-year high: Nanos survey
Most Canadians in March reported feeling angry or pessimistic towards the federal government than at any point in the last six years, according to a survey by Nanos Research.
B.C. child killer's lawyer walks out of review hearing
The lawyer representing child-killer Allan Schoenborn walked out of his client's annual review hearing Wednesday – abruptly ending proceedings marked by tense exchanges and several outbursts.
'A living nightmare': Winnipeg woman sentenced following campaign of harassment against man after online date
A Winnipeg woman was sentenced to house arrest after a single date with a man she met online culminated in her harassing him for years, and spurred false allegations which resulted in the innocent man being arrested three times.
How to avoid the trap of becoming 'house poor'
The journey to home ownership can be exciting, but personal finance columnist Christopher Liew warns about the trappings of becoming 'house poor' -- where an overwhelming portion of your income is devoured by housing costs. Liew offers some practical strategies to maintain better financial health while owning a home.
Juror dismissed in Trump hush money trial as prosecutors ask for former president to face contempt
Prosecutors in the hush money trial of Donald Trump asked Thursday for the former president to be held in contempt and fined because of seven social media posts that they said violated a judge's gag order barring him from attacking witnesses.
Why drivers in Ontario, Quebec and Atlantic Canada will see a gas price spike, and other Canadians won't
Drivers in Eastern Canada face a big increase in gas prices because of various factors, especially the higher cost of the summer blend, industry analysts say.
It's the biggest election in history. Here's why few Indians in Canada will take part
In the Indian general election that gets underway on Friday, almost a billion people are eligible to vote, but a vast majority of the overseas Indian community in Canada won't be casting a ballot.
McDonald's customers left with 'zero value' collection of free hot drink stickers after company ends program
It took years for Vinnie Deluca to collect more than 400 cards worth of free McDonald's McCafe coffee, a collection that now has "zero value" after the company discontinued the program.
Getting the lowest mortgage rates in a high interest rate world
The challenges facing home buyers mean it's all the more important to do research and negotiate on rates, mortgage experts say, though they also caution that there's more to focus on than just what looks like the cheapest upfront option.