Owen Langis - Mortgage Connection

12/10/2024

Tomorrow is a big day for variable-rate mortgage holders.

Will the Bank of Canada cut rates by 0.50% or 0.25%?

Increasing unemployment points towards a 0.50% decrease.

In a recent analysis, Scotiabank's Derek Holt suggests that the Bank of Canada is likely to implement a 50-basis point rate cut this week, despite concerns over the broader economic implications.

11/29/2024

Hi everyone!

I hope you are having a great day!

This is another great tip to help our self-employed business owners get approved for their next mortgage!

⛔ Problem:
Business owners often have monthly payments for one or more 🛻vehicles, 💳credit cards & lines of credit, 🚜equipment loans etc that drastically reduce the amount of mortgage that they qualify for.

These payments are normal, as self-employed people typically use these items in the day-to-day operation of our businesses.

The problem when trying to qualify for a mortgage is that these monthly payments are oftentimes the reason that our mortgage application gets declined & we cannot get approved for the mortgage that we are looking for.
(did you know a $500/mo car payment can reduce the amount of mortgage that you qualify for by up to $100,000)

✅ Solution:
Did you know that there are some lenders that have a program for self-employed business owners that will give you cashback to pay off your debts - Helping you qualify for your next mortgage?

The details:
Some lenders offer a cashback program that at closing will give you up to 5% of the mortgage amount - that is used to pay off car loans, credit card balances & equipment loans.!

💡Example:
You are looking to apply for a $600,000 mortgage to purchase a new home.
However, you are declined for the mortgage at your bank because you have a truck payment of $800/month ($17,000 remaining on the balance) which is reducing the amount you are able to qualify for.

With a cashback mortgage - You can now get approved for the same $600,000 mortgage!
You are able to receive the $17,000 as a 3% cashback at closing that is needed to payoff your truck loan in full - removing the $800/month payment from your mortgage application!
The extra $17,000 will be sent to your lawyer's office at closing & they will pay off your vehicle loan directly!

👍Pros of using a cashback mortgage program:

✔️ - No need to wait years to save and pay debts before buying a home
✔️ - Reduce your overall monthly debt payments
✔️ - Great for self-employed business owners
✔️ - Move into your next home now & not risk home prices increasing further

⚠️***not all lenders offer THIS program & this program is different than your bank's "cashback" program.
Typically, banks offer a small amount of cashback that is paid a month after closing, which cannot be used to paydown debts that are included on your mortgage application.

I hope you found this information useful!

Please feel free to share it with others who also may find it helpful!

As always please feel free to reach out if you have any questions!

Have a great rest of the week!
Talk soon,
Owen

05/24/2024

Happy Friday everyone!

This is a quick mortgage renewal tip/ trick to consider as we head into the weekend 🙂

If your mortgage is coming up for renewal - you will most likely be seeing a dramatic payment increase 📈 for the next term of your mortgage.

Interest rates are much higher now than they were a few years ago & there are a lot of families looking to keep their payments as low as possible.

💡Did you know:
At your mortgage renewal, you may be able to lower your mortgage payment substantially by re-extending your amortization.

The short-term plan:
Consider refinancing your existing mortgage to extend your amortization to 30 years.

Doing this will substantially lower your monthly mortgage payment for the next few years.

Once interest rates have come down (hopefully in the next few years) - we are then able to reduce your amortization back to where it "should" be - keeping you on track to pay your mortgage off on time.

The goal is to provide temporary relief from large mortgage payments for the next few years - then look at getting your mortgage back on track to the normal amortization once interest rates are back to "normal"

eg:
By extending a $400,000 mortgage from a 15-year amortization to a 30-year amortization - we are able to reduce the monthly mortgage payment by ~$1,000/month.
(please see the scenario attached)

I hope this helps!

Please let me know if you have any questions!

Have a great weekend 🙂🙂

Owen

12/16/2023

Happy Saturday!
Quick update on the exciting news in the mortgage rate department this week! 🔥🔥

There have been a lot of people stressed out about the higher interest rates & having their mortgages coming up for renewal 🙂
(understandably! - higher rates = higher mortgage payments = no fun)

Good news appears to be on the way!
The 5-year Canadian Bond has been plummeting recently & FIXED mortgage rates are directly tied to the movement of this bond.

The last time that the 5-year Canadian Bond was at this level - we were seeing 5-year fixed mortgage rates ~4.54% - which is quite a bit lower than the rates we are currently seeing banks offer. 📉

Lenders tend to drag their feet when lowering rates - but they love to increase rates as fast as they can!

If the bond yield stays where it is today or lower, we can expect interest rates to continue to decrease as we head into Christmas & into the new year.🎄

🔥HOT TIP:
knowing that rates are probably heading lower in the next little bit & knowing that banks do NOT send you their best rate in your renewal offer - think twice before signing your renewal offer today - maybe wait a little bit & ask for the new rates closer to your renewal date🙂

BONUS TIP:
Big banks typically lower their rates much slower than other mortgage lenders (and also have higher rates after the rate decreases)

BONUS x2 TIP:
Switching lenders at renewal is typically FREE to do!

✅Reach out if you want to review your upcoming mortgage renewal options and to setup a plan.✅

Be prepared & not scared!

Have a great weekend!

11/10/2023

Exciting news in the Mortgage World over the past few weeks!
This is fantastic for those of you with a mortgage coming up for renewal🙂

The Government has "updated" their rules around the "Stress Test"
(having to qualify at a higher rate than you are actually receiving)

Effective immediately - If your mortgage is currently CMHC insured - you are no longer required to qualify using the stress test on mortgage renewal!

(individual lenders are actively updating their lending guidelines to reflect the new changes)

Why is this important?
It is now easier for you to qualify for your current mortgage & it is easier for you to be able to switch lenders for a lower rate than your current lender is offering you!
If your mortgage is coming up for renewal - reach out and let's chat about the options that are available!
There are giant gaps in rates between lenders right now & shopping around at renewal can save you thousands!

Have a great weekend!
Owen

04/09/2023

🏆 2022 Mortgage Connection Top Growth Award Winner!
Thank you everyone for an amazing year!

09/14/2022

🏠⭐⭐⭐⭐⭐🏠

08/18/2022

Thank you!
⭐⭐⭐⭐⭐

06/28/2022

Alright!
Storytime :)

🏠Sally purchased a home 5 years ago and had a $400,000 mortgage with a 2.50% interest rate with her bank. ($1,791.86/month mortgage payment)

Sally made all of her payments for the past 5 years, and everything was looking awesome!

>>>>>> Fast Forward to today.......

Sally just received her mortgage renewal offer from her bank with a 5-year fixed renewal rate of 5.00%
(a "normal" rate in today's environment)

With this new rate - Sally's mortgage payment Jumped up to $2,224.71/month - this is up $432.85/month from what she was paying over the last 5 years.

⚡️Needless to say - Sally was not impressed with this option.

💡Solution:
Sally and I decided to extend her mortgage back out to 30 years - from the currently remaining 20 years - and we did not take out any existing equity in her home - leaving her mortgage balance untouched.

By doing this, we were able to reduce Sally's mortgage payment from $2,224.71/month with her bank - to $1,806.82/month!!

Sally is now saving ~$417.89/month - when compared to what her bank had offered her as a renewal option! 🙂
And her payment overall monthly payment basically stayed the same as it was over the past 5 years!

Sally is now very happy!

Feel free to shoot me a message if this is something that you may want to explore when your mortgage comes up for renewal.

Have a great week!

06/01/2022

05/16/2022

💥⭐⭐⭐⭐⭐💥

05/02/2022

HOLDBACK // 🔨
If you are a realtor, you need to read this!

We know holdbacks are sometimes necessary to make a real estate deal happen and protect buyers. However, there’s nothing worse than the deal being held up on closing day because of a $5,000 holdback over some uncompleted work.

Mortgage lenders view holdbacks essentially as cash backs to the client and therefore a reduced purchase price if the work is not completed. The reduced purchase price will change the loan to value and can affect the insurability of a mortgage and the rate. It also means more money out of the buyer’s pocket to close the purchase.

DM us to get the exact wording you need to use to make sure the holdback is a success and your client is protected!