First Time Home Buyers
First-time buyers, new entrants to the workforce, and low income singles and families generally require either housing that is considered to be ‘affordable’ housing or ‘entry-level’ housing.
Generally speaking, a home is considered affordable if the monthly rent or payments amount to no more than 30 percent of the gross household income (as determined by the Canada Mortgage and Housing Corporation to be the limit of housing affordability). The maximum income limits (MILs), as set by the Saskatchewan Housing Corporation, are used to determine whether families or housing providers are eligible to apply for the Government of Saskatchewan’s housing programs. Currently, the maximum income limit for families with dependents is $52,000 and for coups and singles without dependents the limit is $44,500. Therefore, if a family with dependents were to spend 30 percent of their annual income on housing they would be able to afford a home that costs approximately $175,000. Unfortunately, current housing options available within this price range are limited in Saskatoon.
Entry-level housing is considered to be housing that is modest is size and includes the basic features typical of what first-time buyers would purchase. Entry-level homes are usually purchased by young families and new entrants to the workforce. These homes often consist of modest resale units, apartment-style condominiums and townhouses, and homes that are generally lower in cost when compared to new or large homers. Nevertheless, many looking to purchase entry-level housing in Saskatoon are spending closer to 40 percent of their average household income in order to access the housing market.