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
Grandparent scam: London, Ont., senior beats fraudsters not once, but twice
It was a typical Tuesday for Mabel Beharrell, 84, until she got the call that would turn her world upside down. Her teenaged grandson was in trouble and needed her help.
Deaths of 4 people on Sask. farm confirmed as murder-suicide
The deaths of four people on a farm near the Saskatchewan village of Neudorf have been confirmed a murder-suicide.
CRA no longer requiring 'bare trust' reporting in 2023 tax return
The Canada Revenue Agency announced Thursday it will not require 'bare trust' reporting from Canadians that it introduced for the 2024 tax season, just four days before the April 2 deadline.
Full parole granted to man convicted in notorious 'McDonald's murders' in Cape Breton
The Parole Board of Canada has granted full parole to one of three men convicted in the brutal murders of three McDonald's restaurant workers in Cape Breton more than 30 years ago.
Incident on Calgary's Reconciliation Bridge comes to safe resolution
Calgary police shut down a number of bridges into and out of the downtown core as officers dealt with a distraught individual. The incident lasted almost 20 hours.
Sunshine list: These were the Ontario public sector's highest earners in 2023
Ontario released its annual sunshine list Thursday afternoon, noting that the largest year-over-year increases were in hospitals, municipalities, and post-secondary sectors.
George Washington family secrets revealed by DNA from unmarked 19th century graves
Genetic analysis has shed light on a long-standing mystery surrounding the fates of U.S. President George Washington's younger brother Samuel and his kin.
'We won't forget': How some Muslims view Poilievre's stance on Israel-Hamas war
A spokesman for a regional Muslim advocacy group says Conservative Leader Pierre Poilievre's stance on the Israel-Hamas war could complicate his party's relationship with Muslim Canadians.
Why some Christians are angry about Trump's 'God Bless the USA' Bible
Former U.S. President Donald Trump is officially selling a copy of the Bible themed to Lee Greenwood’s famous song, 'God Bless the USA.' But the concept of a Bible covered in the American flag has raised concern among religious circles.