We offer a financing program to assist new residential customers whose electricity connection costs exceed $1,000 and commercial customers where connection costs exceed $5,000.
The SaskPower New Connects Financing program includes a minimum 25 per cent down payment, and loans will not exceed $2 million dollars per customer.
The program will be financed and administered by SaskPower, from loan inception to maturity. This will allow us to customize financing and repayment options according to customer need.
On approved credit, loans will be offered at rates no less than SaskPower’s cost of capital, plus administrative costs. The corporation will also include a reasonable risk premium if appropriate.
As in the case of all lenders, a risk premium reflects the fact that a small number of customers are likely to default on their loans resulting in loan losses. To compensate for this, the Corporation includes a small risk premium in its loan interest rates.
Providing these financing options will provide convenience and affordability to new customers — in most cases, billing and payments will be included on a customer’s electricity bill, or a monthly payment plan will be established.
- New residential and farm service installations are eligible for financing from $1,000 to $2 million, not including a minimum required 25 per cent down payment.
- New commercial and industrial service installations are eligible for financing from $5,000 to $2 million, not including a minimum required 25 per cent down payment.
For loan applications greater than $25,000, we will estimate the creditworthiness of potential borrowers. We will take into account past credit history, personal net worth and debt servicing burdens for individuals, and the financial strength of corporations through the review of corporate financial statements.
Depending on the circumstance, we may require:
- A personal guarantee by primary shareholder(s) in the case of corporations; or
- A charge against the property or equipment being serviced in the case of corporations or individuals.
In all cases, for loans greater than $25,000 a caveat will be registered against the property being serviced. SaskPower reserves the right to refuse a loan application if it deems the applicant has inadequate financial ability to service the loan.
|Term of loan||Loans up to $25,000
||Loans over $25,000
|1 year term||6.550%||5.950%|
|2 year term||6.700%||6.100%|
|3 year term||6.850%||6.250%|
|4 year term||7.000%||6.400%|
|5 year term||7.150%||6.550%|
|10 year* term||7.850%||7.250%|
Minimum residential/farm loan $1,000. Minimum commercial loan $5,000.
*only available on loans $5,001 and above