How Much Money Do You REALLY Need to Buy a Home in Saskatoon?

Buying a home is one of the biggest financial decisions you'll ever make, and it's not just about the down payment. Many homebuyers underestimate the additional costs involved, which can lead to unexpected financial stress. In this guide, we’ll break down exactly how much money you need to buy a home in Saskatoon, ensuring you're fully prepared for every expense.

The Main Costs of Buying a Home

1. The Down Payment

Your down payment is the upfront amount you pay towards the purchase of your home. In Canada, the minimum down payment required depends on the price of the home:

✅ 5% for homes under $500,000
✅ 10% for the portion between $500,000 - $999,999
✅ 20% for homes over $1M

Example:

If you're purchasing a $400,000 home, your minimum required down payment is 5%, which equals $20,000.

🎯 Pro Tip: A larger down payment reduces your mortgage amount and helps you avoid Canada Mortgage and Housing Corporation (CMHC) insurance if you put down at least 20%.

2. Closing Costs (Expect 1.5% - 4% of the Purchase Price)

Closing costs cover all the legal and administrative expenses involved in transferring homeownership. While Saskatchewan does not have a land transfer tax (unlike some other provinces), there are still essential costs to consider:

🏡 Breakdown of Closing Costs:

• Legal Fees: $1,500 - $2,500 (for lawyer/notary services).

• Home Inspection: $400 - $600 (highly recommended to avoid costly surprises).

• Appraisal Fees: $300 - $500 (required by some lenders).

• Title Insurance: $250 - $500 (protects against title fraud and ownership issues).

Example:

For a $400,000 home, you should budget $6,000 - $10,000 for closing costs.

3. Mortgage Insurance (If Your Down Payment is Under 20%)

If your down payment is less than 20%, you’re required to pay CMHC mortgage insurance to protect the lender in case of default. The insurance premium is added to your mortgage and varies based on your down payment percentage:

🔹 4% of the mortgage if you put 5% down
🔹 3.10% if you put 10% down
🔹 2.80% if you put 15% down

Example:

For a $400,000 home with a 5% down payment, the CMHC insurance will cost $15,200, which is added to your mortgage balance.

4. Moving Costs & Immediate Expenses

Even after closing, there are additional costs associated with moving into your new home:

🚛 Moving Costs: Hiring professional movers can cost between $1,000 - $3,000.
💡 Utility Setup Fees: Expect to pay around $100 - $300 for setting up electricity, gas, water, and internet.
🛠️ Minor Repairs or New Furniture: Budget $2,000 - $5,000 for things like paint, curtains, furniture, or appliance upgrades.

📢 Pro Tip: Always have extra cash saved for unexpected costs after moving in!

How to Prepare Financially for Homeownership

1. Know Your Buying Power

Before shopping for a home, get pre-approved for a mortgage to understand how much you can afford. Focus on monthly affordability rather than just the total home price.

2. Save Beyond the Down Payment

In addition to your down payment, aim to save 3-4% of the home price for closing costs, moving expenses, and unexpected repairs. It’s also crucial to have an emergency fund with 3-6 months' worth of expenses.

3. Improve Your Credit Score

A higher credit score means a lower mortgage interest rate, which can save you thousands over time. To boost your score:

✅ Pay off debts and keep credit card balances low.
✅ Maintain a credit utilization below 30%.
✅ Make all payments on time.

💡 Example: A buyer with a 780 credit score vs. 640 credit score could save $50,000+ over a 25-year mortgage!

Final Thoughts

Buying a home involves more than just saving for a down payment. By understanding the full scope of costs, you can budget effectively, avoid surprises, and confidently step into homeownership.

🔥 Want expert guidance on buying a home in Saskatoon? Call me, Jack Bouvier, at (306) 370-6179, or check out the links in the description to get started on your journey today!

🏡 Let’s make your homeownership dream a reality!