Buyers who put down less than 20 percent must carry mortgage default insurance through CMHC, Sagen or Canada Guaranty. The premium is a percentage of the mortgage that falls as the down payment rises, and it is added to the loan. In Saskatchewan the provincial sales tax on that premium is payable in cash at closing, which is a line most first-time buyers do not budget for.
For a seller, the down payment rules matter because they shape your buyer pool. Homes priced under $500,000 are reachable with 5 percent down, which is the largest pool of buyers in the city. Above that threshold the required down payment rises on the excess, which narrows the pool slightly, though not dramatically at Saskatoon price points.