The average down payment loan from the city will be about $12,000, said the cityâ€™s press release. The aim is to help about 250 households.
The average selling price of a home in Saskatoon was up 11% in January from a year earlier, going from $270,265 to $300,353, according to ReMax. Itâ€™s also home to the youngest and fastest growing population in Canada, as reported this month by Statistics Canada.
But both the Canada Mortgage and Housing Corporation and the Conference Board of Canada expect housing starts to slow down, despite the recent growth. The Conference Board of Canada said housing starts in Saskatoon slowed during 2010 by about 700 units per year, to just over 2,000. Going forward over the next couple of years, the board said the pace of housing starts will continue to decline, based on the assumption that the economy and population will also start to slow over that time.
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Acting to address that issue, the City of Saskatoon is spending $3 million to help moderate income renters make down payments so they can get mortgages. The program, dubbed the Equity Building Program, is designed to help buyers purchase a home ranging in value from $220,000 to $280,000.