Joel DyckReal Broker SK Ltd.
Saskatoon · From the topic map

Can I afford to buy if my rent is already $3,200?

Possibly, but a $3,200 rent payment and a mortgage payment of the same size are not the same commitment, so the comparison needs more than the monthly number. A mortgage payment also carries property tax, insurance and maintenance that a landlord currently covers, and a lender's mortgage stress test qualifies you at a rate higher than your actual contract rate.

CMHC and the other Canadian mortgage insurers require lenders to test your ability to pay at the greater of the Bank of Canada's benchmark rate or your contract rate plus 2 percent, which means your qualifying payment is higher than $3,200 even if your actual future payment would be similar. Add property tax and insurance, typically several hundred dollars a month combined in Saskatoon, and the true monthly cost of owning usually runs above what you pay in rent today.

Your down payment source matters just as much as the monthly math. A buyer with 5 percent down and strong income can often qualify at a Saskatoon price point that carries a similar monthly cost to a $3,200 rent, once the stress test and closing costs are worked in properly.

Joel Dyck can connect you with a lender who runs your specific numbers against real Saskatoon listings before you decide. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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