A homeowner with real equity can sell privately, refinance, or borrow against that equity to cover a shortfall, all of which resolve the problem before a lender's lawyer gets involved.
Low or negative equity narrows those options fast, because there is nothing to refinance against and a private sale might not cover the mortgage balance, which is when a lender in Saskatchewan turns to a formal Court of King's Bench process rather than a negotiated exit.
The minimum down payment rule, 5 percent to $500,000 then 10 percent above, exists partly to make sure a new buyer starts with some of that cushion already in place. Get your hand-reviewed valuation from Joel Dyck.