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Rent to Own Homes in Saskatoon, Saskatchewan
Canadian rock band The Guess Who had a big hit with “Runnin’ Back to Saskatoon” in 1972. As the title suggests, more people are moving to Saskatoon to take advantage of the low cost of living, a growing economy, and fair housing market prices.
With a population of 266,000, Saskatoon is surrounded by national parks, winding rivers, and wide-open spaces. For those looking to make Saskatoon their home, rent-to-own programs offer a unique opportunity to achieve homeownership in this thriving city.
Simply put, rent-to-own allows potential homebuyers to rent a property while building equity and saving for a down payment, making it an attractive option for those who may not be ready for a traditional mortgage. By the end of this article, you will have a comprehensive understanding of why Saskatoon is an excellent choice for those considering a rent-to-own home, how rent-to-own works, and the benefits of choosing a rent-to-own program in this growing prairie city.
If you're eager to start your journey towards homeownership in Saskatoon, be sure to view the latest rent to own properties in Saskatoon
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Real Estate Trends in Saskatoon, Saskatchewan
While Saskatoon's housing market hasn't experienced the same drastic price increases as major cities like Toronto and Vancouver, it has still seen steady growth over the years. However, between 2022 and 2023, the average sale price in the Saskatoon housing market decreased slightly by one percent, from $380,039 to $376,088. The number of sales also saw a minor decrease of 0.1 percent, from 4,117 to 4,112.
Looking ahead to 2024, the average residential sales price across all property types is expected to increase by two percent, while the number of sales transactions is anticipated to remain the same due to low inventory. The neighbourhoods of Brighton and Kensington are likely to be the most desirable in 2024, thanks to new developments and growing communities that offer a variety of amenities.
Saskatoon's housing market continues to be attractive to buyers seeking affordability and a high quality of life, with shorter commute times being a key factor. The condominium market is expected to see the greatest demand in 2024, primarily from downsizing Baby Boomers, farmers, students, and newcomers who are looking for neighbourhoods with green space, multiple bedrooms, and proximity to grocery stores and healthcare services.
The luxury home market in Saskatoon is driven by interprovincial migration, with families from British Columbia and Ontario relocating in search of more space and land at a lower cost compared to their home provinces. These buyers are typically interested in homes in the $700,000 to $900,000 range that can accommodate multi-generational families.
Rent-to-own acreages in Saskatoon have also been gaining popularity as people move from small dwellings in the city and seek more space and a rural lifestyle. This option provides the flexibility and affordability of the rent-to-own model, allowing more people to enjoy the benefits of living on a larger property.
Despite the steady demand, low inventory and high interest rates remain the dominant factors affecting Saskatoon's housing market. First-time homebuyers are often seeking properties with additional suites that can be converted into rental units to help with mortgage payments. However, given the current economic conditions, buyers are becoming more selective and are less interested in renovation properties due to the additional costs involved.
Transportation
Named after the 13th Prime Minister of Canada, the Saskatoon John G. Diefenbaker International Airport is located just northwest of downtown Saskatoon. The airport sees an average of 1.5 million passengers annually and is also served by courier and freight operators. It is the 19th busiest airport in Canada and is listed as the 12th busiest airport for passenger traffic.
The Yellowhead Highway (Hwy 16) runs off the Trans-Canada Highway, connecting Saskatoon to Alberta, British Columbia, and Manitoba to the east. The city has several bridges crossing the South Saskatchewan River in Saskatoon, including one named after Saskatchewan’s favourite son, hockey legend Gordie Howe.
Transportation for passengers by train is provided by VIA Rail. CN Rail and the Canadian Pacific Railway both operate freight services connected to Saskatoon.
Economy
According to Statistics Canada, Saskatoon is one of the fastest-growing urban centers in the country. The biggest contributor to the burgeoning economy in Saskatoon is agriculture. It is the world’s largest exporter of durum wheat, flaxseed, oats, lentils, peas, and canola and houses two-thirds of the world’s potash, a potassium-rich salt mined from underground deposits and used primarily in fertilizer.
The Saskatoon economy is also fueled by oil, gold, diamond, and coal mining. The city is the home of Cameco, a leading supplier of uranium refining, conversion, and fuel manufacturing services.
Education
Children and adults alike can find several educational opportunities in Saskatoon.
There is no cost to Saskatchewan residents for families enrolling children in pre-kindergarten to grade 12. Schools are publicly funded by three different school systems: Saskatoon Public Schools, Greater Saskatoon Catholic Schools, and a separate board for Francophone schools.
The University of Saskatchewan (USask) is home to 25,700 students from 130 countries worldwide. USask is one of the leading research-intensive, medical doctoral universities in Canada. It is a world leader in research for infectious diseases and water and food security.
Adults can also continue their education or train for a job at many private career colleges in Saskatoon, with specialization in such areas as massage therapy, office administration, or hairstyling and aesthetics.
What is Rent-to-Own in Saskatoon?
Rent-to-own is a unique homeownership strategy that allows potential buyers to rent a property with the option to purchase it at a later date. This approach is particularly beneficial in Saskatoon’s housing market, where rising prices can make it challenging to save for a down payment while renting.
In a rent-to-own agreement, a portion of your monthly rent payments goes toward the future purchase of the home. This enables you to build equity and secure a path to homeownership over time. Typically, these agreements last between one to five years, giving you time to improve your financial situation, build credit, and save for a down payment.
How Rent-to-Own Works in Saskatoon
The rent-to-own process with Requity Homes in Saskatoon involves several key steps:
- Apply to pre-qualify: Start by applying to pre-qualify for rent to own programs in Saskatchewan. This step will help determine your eligibility and home budget. The application is free and won't impact your credit score.
- Get full approval: Once pre-qualified, submit the necessary documents to verify your application. Upon full approval, you'll receive a home shopping budget to guide your search.
- Find your dream home: Find suitable rent-to-own homes for sale in Saskatoon that fits your needs and budget. Once you select a property, Requity Homes will purchase it for you, covering all closing costs, including land transfer tax and legal fees.
- Move in and save up: Move into your new home and start paying rent. A portion of your monthly rent payments will be saved toward your down payment, helping you build equity over time.
- Buy your home: When you are ready to secure a mortgage, you can buy the home from Requity Homes at a pre-determined price. If you decide not to purchase, you can walk away and cash out your savings.
To help you understand your financial commitments, use our rent-to-own payment calculator. This tool allows you to discover your personalized home shopping budget and calculate your monthly payments, giving you a clear picture of how much you need to save each month towards your future down payment.
The Benefits of Rent to Own a Home in Saskatoon
Rent-to-own offers a practical solution for those who want to own a home in Saskatoon but are not ready to take on a traditional mortgage. With housing prices increasing year after year, saving up for a down payment while renting can be challenging. Rent to own with Requity Homes provides an affordable and flexible pathway to homeownership by allowing you to lock in the price of your home and gradually build equity.
Let’s say that you have found the perfect home in Saskatoon for $400,000.
You have two options:
Rent for Two Years Then Purchase the Home
Using a base formula of 10% appreciation annually, your $400,000 Saskatoon home would be valued at $480,000 after two years.
Rent to Own with Requity Homes
Requity Homes offers a low 5% price increase per year, lower than the average growth rate. That means when you rent to own a home in Saskatoon with Requity Homes, you can lock in the price of your new home and know what it will be valued at in two years.
For example, with Requity Homes a growth rate of 5% means that you can buy your new home in two years for $440,000 instead of $480,000. That is a sizable savings of $40,000!
The Requity Homes rent-to-own homes Saskatoon program is there to help get you and your family into the home of your dreams while saving you a significant amount of money in the process.
Homeownership is at your fingertips sooner than you could have ever imagined when you rent to own in Saskatoon with Requity Homes.
