When diving into the world of homeownership in the heart of Canada, understanding the mortgage landscape of Saskatchewan can make all the difference. City Centre Mortgages is here to shed some light on the specifics for prospective homeowners!
Let’s review some Saskatchewan mortgage basics today to help you feel more empowered about your mortgage and home-buying decisions in this province.
Why Choose Saskatchewan?
While it’s not known for its mountains the way Alberta is or the ocean the way British Columbia is, there is still so much beauty in this incredible province!
Not to mention, housing prices are relatively more affordable than in larger metropolitan areas like Vancouver and Toronto. This is a big draw for many prospective homebuyers, including the first-time homebuyers we love to work with.
Saskatchewan First-Time Homebuyers Tax Credit
Speaking of first-time homebuyers, Saskatchewan also has what’s known as the First-Time Homebuyers Tax Credit. As the provincial website explains:
“The First-Time Homebuyers’ Tax Credit is a provincial non-refundable income tax credit of up to $1,050 to eligible taxpayers on qualified homes. To claim this tax credit on your Saskatchewan income tax return use Form SK428, available from the Canada Revenue Agency.”
Fixed vs. Variable Rates
Before securing a mortgage, decide if you’d prefer a fixed or variable rate. Fixed rates mean your interest stays constant throughout the term. In contrast, variable rates can fluctuate based on the Bank of Canada’s decisions and market conditions.
Down Payment Details
In Saskatchewan, a home costing up to $500,000 requires a minimum down payment of 5%. For homes priced between $500,000 and $1 million, an additional 10% down payment on the amount over $500,000 is required. Any home priced over $1 million requires a 20% down payment.
Conclusion: Saskatchewan Mortgage Basics
Whether you’re drawn to Saskatchewan for its scenic beauty or vibrant urban centers, securing the right mortgage is crucial. City Centre Mortgages is here to guide you through every step. Call now (306) 596-9775) or apply for a mortgage online.