I want to share a success story demonstrating how the recent mortgage-rule changes epitomize the popular saying, “Date the Rate, Marry the Home.”

The Challenge:

The client is self-employed earning roughly $100k in revenues, but their net income is around $65k.

Due to the lower net-income, higher interest-rate and even higher stress-test rate, we had to use a sub-prime mortgage to complete the purchase of their first home in 2023.

We opted for a 2-yr Fixed Rate at 6.84%.. but this allowed them to purchase their first home, and similar properties are currently selling for +$25,000

HUGE Rule Change:

As of December 15, 2024, conventional mortgages (including sub-prime mortgages) allow borrowers to transfer their mortgage to a new lender and avoid the nasty stress-test.

The Result:

Clients are coming up for renewal. Their business’s net income has remained relatively flat ($65k), but because they are qualifying at a rate of 4.50% instead of the stress-tested 6.50%, we can transfer their mortgage to a Prime Lender.

Switching lenders for the lower rate will save these clients +$400.00/m on their mortgage payments, or $24,000 over the 5-year term!

How This Benefits You:

If you are currently in a high-interest rate mortgage and your are coming up for renewal, you may be able to switch lenders for a lower-rate.

Please pass this information on to anyone you know currently in a sub-prime mortgage. This could help them save some money!