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
Widow looking for answers after Quebec man dies in Texas Ironman competition
The widow of a Quebec man who died competing in an Ironman competition is looking for answers.
Tom Mulcair: Park littered with trash after 'pilot project' is perfect symbol of Trudeau governance
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
World seeing near breakdown of international law amid wars in Gaza and Ukraine, Amnesty says
The world is seeing a near breakdown of international law amid flagrant rule-breaking in Gaza and Ukraine, multiplying armed conflicts, the rise of authoritarianism and huge rights violations in Sudan, Ethiopia and Myanmar, Amnesty International warned Wednesday as it published its annual report.
Photographer alleges he was forced to watch Megan Thee Stallion have sex and was unfairly fired
A photographer who worked for Megan Thee Stallion said in a lawsuit filed Tuesday that he was forced to watch her have sex, was unfairly fired soon after and was abused as her employee.
Amid concerns over 'collateral damage' Trudeau, Freeland defend capital gains tax change
Facing pushback from physicians and businesspeople over the coming increase to the capital gains inclusion rate, Prime Minister Justin Trudeau and his deputy Chrystia Freeland are standing by their plan to target Canada's highest earners.
U.S. Senate passes bill forcing TikTok's parent company to sell or face ban, sends to Biden for signature
The Senate passed legislation Tuesday that would force TikTok's China-based parent company to sell the social media platform under the threat of a ban, a contentious move by U.S. lawmakers that's expected to face legal challenges.
Wildfire southwest of Peace River spurs evacuation order
People living near a wildfire burning about 15 kilometres southwest of Peace River are being told to evacuate their homes.
U.S. Senate overwhelmingly passes aid for Ukraine, Israel and Taiwan with big bipartisan vote
The U.S. Senate has passed US$95 billion in war aid to Ukraine, Israel and Taiwan, sending the legislation to President Joe Biden after months of delays and contentious debate over how involved the United States should be in foreign wars.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.