Saskatchewan borrowers up for mortgage renewal weighing stressful decision

What to do when your mortgage is up for renewal? WATCH: CTV News reached out to dozens of mortgage brokers across the country to help guide those with a mortgage.

Devyn Gregoire is looking to buy his first home and join many others in Canada who are managing their mortgages amid high interest rates.

And like them, Gregoire is struggling with what his mortgage may ultimately look like.

"If rates do go down and I get a little more to work with, that would be the world to me," he said.

Ahead of Bank of Canada's key interest rate announcement on Wednesday, Saskatchewan mortgage borrowers are looking for and expecting some relief, and those who are coming up for a mortgage renewal are asking if a fixed rate or variable rate mortgage is best for them.

"It's kind of one of those lifetime events where, you know, it's going to be a bit of a struggle," Gregoire said. "You want to put a lot of time and energy and to make that right, perfect decision."

In May 2019, the Bank of Canada’s key interest rate was 1.74 per cent. During the pandemic, the key rate dropped to 0.25 per cent.

Many Saskatchewanians who took advantage of those low mortgage rates are now part of the 44 per cent of Canadians who are up for mortgage renewal in the next year-and-a-half.

Regardless of which route homeowners choose to explore, the decision seems anything but straightforward.

"I feel like nowadays I play more of a psychologist than a mortgage broker. Because there's just so much stress attached to the whole process now," Saskatoon mortgage broker Conrad Neufeldt said.

"A lot of the times when people are suffering from these increased payments, they're also suffering from other things like car loans, increased debts, other lines of credit, and all those other things. So it kind of has a spillover effect."

Today, the Bank of Canada's key interest rate sits at a lofty 5.00 per cent.

As other markets see mortgage payments sky rocket in the face of high interest rates, Saskatchewan has remained an affordable place for people to live.

Of all markets that participated in the questionnaire, Saskatoon was tied with London, Ont. with the lowest available mortgage rate — a 4.34 per cent fixed-rate mortgage on a six-month term.

"The main piece of advice is don't let your short term pain affect your long term plan," Neufeldt said. "Because I think right now there's a real big temptation to solve the problem that's right in front of you. But (borrowers) are jumping into mortgages that potentially are going to cause much, much larger pain in the long run."

Neufeldt said many people are very interested in longer-term mortgages to pursue lower interest rates rather than lock in a short term mortgage with some of the best rates in the country.

"They want some level of stability, but they're also trying to pursue this idea of a better outcome in the long term. It's that balancing act between accomplishing both of those things, particularly in this market. It's a challenge," Neufeldt said.

Economists across the country expect the Bank of Canada to begin lowering the interest rate on Wednesday, but no one is expecting a return to the low values offered during the pandemic.

"Our baseline forecast (until 2026) is really bringing us to between 2.5 per cent and 3 per cent, but that said, it is still going to be significantly higher than what it was," said Tania Bourassa-Ochoa, the deputy chief economist with the Canadian Mortgage and Housing Corporation.

"I think we anticipate definitely that it's going to be higher for longer interest rate environment and so we really need to wrap our heads around that."

As many contemplate their mortgage future, Gregoire is patiently looking at his options, hoping for some level of relief from the Bank of Canada.

"I think the play now is just kind of maybe go back to dad's place for a bit, you know, cheap rent, save up some money, and then maybe when interest rates hopefully come down around the corner here I maybe really get real serious about getting a place," he said.