It tends to help most on a well-priced home in a market the Saskatchewan REALTORS Association currently measures at 1.63 months of supply, where multiple offers are common enough that a clear cap protects you from overpaying by accident.
A strong, well-researched offer at your real maximum, with clean and clearly dated conditions, often competes just as well without revealing your ceiling, and it gives the seller less room to simply counter you right up to the edge of what you disclosed.
If you do use one, set the cap at a number you would genuinely pay outright, since that is the number a seller's counter can push you toward. Get your hand-reviewed valuation from Joel Dyck.