Saskatchewan housing remains affordable despite rate hike

Some housing experts say now isn’t the time to panic in Saskatchewan over the increase in Canada’s key interest rate.

Mortgage broker Carrie Cardinal, however, said there’s “a lot” of uncertainty already among borrowers.

“I hear from folks coming up for renewal in the spring, ‘What should I do?'” She explained. “‘Should I go fixed rate or variable?’ And right now we’re seeing everything tick up.”

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On Oct. 29, 2026, the Bank of Canada raised its benchmark interest rate for the first time in more than three years.

The central bank’s policy rate now stands at 2.5 per cent following a quarter-point hike.

It warned higher costs are likely to spread.

However, Cardinal said homeowners with a fixed-rate mortgage won’t be affected.

“The increase adds approximately $14 per month for every $100,000 owing on your mortgage,” she explained. “That’s only on a variable rate mortgage or on a home equity line of credit.”

Cardinal said the lending rate is worth keeping an eye on, adding things were much different post-pandemic.

“We are not at the point (we were) in late 2022, where the rates moved very quickly,” She said. “We were told that the interest rates would remain low for a very long time.”

Cardinal described Saskatchewan as fairly affordable, compared with other provinces.

“There’s still definitely an opportunity where the market has softened,” Cardinal explained. “We’re having home buyers not have to compete as hard as they had been earlier in the year, so I think that’s a win.”

Real estate outlook

Chris Guérette, CEO of the Saskatchewan Realtors Association, shares Cardinal’s optimism.

She called the uptick “expected.”

“Housing is cooling,” Guérette said. “Demand is slowing, the builds are slowing, sales are lower than expected, and that’s everywhere in the country except Saskatchewan.”

“Housing is cooling,” Guérette said. “Demand is slowing, the builds are slowing, sales are lower than expected, and that’s everywhere in the country except Saskatchewan.”

For buyers, she said that there are promising signs of moderation.

“There’s more choice compared to what we’re used to,” Guérette added. “But we’re definitely not at a place where we could qualify this as a balanced market in any way.”

Guérette added that Saskatchewan has the most affordable housing relative to salaries, but said living costs may influence individual budgets and decisions about where to live.

“We are looking at a province that is very strong, and we have some beautiful communities throughout.”

The next scheduled overnight rate announcement is Dec. 9, 2026.

—With files from The Canadian Press