30 Mar

Speculation vs Calculation

General

Posted by: Angela Calla

Two aspects of my life that I really value include my health and wealth. As such, I fully appreciate professionals who take the time to give me advise based on verification – calculation as opposed to mere speculation.

For instance, if I’m not feeling well, I will describe my medical symptoms to my doctor and she will do the necessary diagnosis prior to recommending a treatment. She may have an idea of what’s wrong with me, but I could only respect and count on her advice after the results of the tests are back (such as blood tests, x-rays, etc). When those results are in, if there’s something my doctor wants to discuss further, I wouldn’t expect her to send me a quick email, write me a prescription, and then never follow up. So, this is an example based on calculation.

If you called your doctor and explained symptoms, and she just jumped to a conclusion and offered a treatment right away would you have confidence in her as a medical professional given that she based her recommendations purely on speculation? I know I wouldn’t!

In this age of the Internet and a quest for simplicity, when it comes to a mortgage it’s been noted that 8 out of 10 callers ask “What are your rates?” before they have provided the necessary information. You can’t base a mortgage professional’s qualifications based solely on a quoted rate! What’s more important than rate alone is finding out if the mortgage professional is going to devise a plan for you that will reduce the amount of interest you’re paying throughout the life of your mortgage – the best plan catered to your unique needs that will enable you to save the most amount of money.

Asking about rates as opposed to focusing on the bigger picture is like asking a mortgage broker to give you results before they’ve performed any “tests”. Would you ask that of your doctor? Would you want to know results based purely on speculation? And, even when the results are in, are we all educated to the same degree to understand our “test results”?

The 20% who think differently are always the ones who soar above the rest.

It’s always the different way of asking the question or a small shift that offers a big change and results in helping borrowers get ahead!

 Thanks for visiting

Angela Calla, AMP

Dominion Lending Centres-Angela Calla

Host of ” The Mortgage Show” Saturdays @ 7pm on CKNW AM980

E-mail: callateam@dominionlending.ca

30 Mar

12 Myths about Mortgages

General

Posted by: Angela Calla

Since there are many myths surrounding mortgage financing, I thought I’d help demystify the top 12 I come across most often!

1. Purchasing a home with a 5% down payment is only for first-time homebuyers.

2. Bi-weekly and semi-monthly mortgage payments are the same thing.

3. There is a fee for a mortgage broker (our service is free)

4. Shopping around on your own results in the best mortgage rate.

5. Every time I purchase a home I’ll have to pay the full mortgage insurance amount I paid on my first purchase.

6. Opting for a longer amortization is always a poor decision.

7. Mortgage terms and conditions are not as important as getting the best rate.

8. Paying property taxes with my mortgage means I don’t have anything else to do.

9. My bank has my best interest in mind.

10. I can buy a home before I sell mine and get “bridge financing” easily.

11. My parents will help me qualify for a bigger house.

12. I can roll all of my debt into my first home purchase.

 If you have any questions regarding these myths or would like some help to ensure the best possible mortgage for your goals and savings the Angela Calla Mortgage Team is here to help you directly.

Thanks for visiting

Angela Calla, AMP

Dominion Lending Centres-Angela Calla

Host of ” The Mortgage Show” Saturdays @ 7pm on CKNW AM980

Phone: 604-802-3983 Email: callateam@dominionlending.ca

30 Mar

3 reasons to consider a 10 year fixed term today

General

Posted by: Angela Calla

With mortgage rates at all-time lows, it seems longer terms are making a comeback. It turns out that fashion isn’t the only thing that comes back into style!

In fact, 10-year fixed mortgage rates have never looked so sexy. If you owned a home in the 80s or 90s, you may notice the 10-year term comeback!

 Following are three reasons to consider a 10-year mortgage term:

 1. After 5 years, you only have to pay three months’ interest to get out of the mortgage. This is currently the lowest penalty available to for a fixed rate – much more attractive than facing a much higher interest rate differential (IRD) penalty!

 2. You don’t need the equity out of your home for your next purchase as you can buy again with a 5% down payment. For instance, if you purchase with 5% down, your property would have to go up over 25% for you to get equity to use as a down payment for a second home, which is not likely in five years.

But, you can turn your current condo into a rental and buy your next home with 5% down (with a combination of savings or a gift). Rental mortgages usually require a 20% down payment, whereas primary residences typically require just 5% down. Purchasing a condo to live in until you’re ready to buy another home, and then renting out the condo, is a great way to become a real estate investor without having to come up with a 20% down payment.

 3. If you’re on a fixed income, taking advantage of a longer term fixed-rate mortgage can definitely be beneficial. Currently, with our historically low interest rates, a five-year fixed rate is around 3.19% and 10-year is around 3.89%. So, if after 5 years rates have risen to 4.6% or higher (which is very likely), you would have been ahead taking the current 10-year at 3.89%.

Instead of guessing how much longer rates will remain at historic lows, if you’re on a fixed income, you know you’ll be paying the same rate for 10 years. And, chances are, after 10 years are up, you will be in better shape financially and have more equity in your home.

The return of the solid 10-year means you have options. It may not be the best option for everyone and the market may change in a few months to make it less attractive. I will show you how all the products apply to you to ensure you receive the best product for your goals!

Thanks for visiting

Angela Calla, AMP

Dominion Lending Centres-Angela Calla

Host of ” The Mortgage Show” Saturdays @ 7pm on CKNW AM980

Phone: 604-802-3983 Email: callateam@dominionlending.ca

 

29 Mar

Timing on your mortgage 3 tips to stay ahead

General

Posted by: Angela Calla

When it comes to your mortgage, timing is everything. The cost of procrastination or not knowing when to make a move has proven to be very expensive over the last few years – even in this historically low interest rate environment.

Lenders are looking at cutting costs. They have shown us this by not committing rate holds for the best rates, making them available only for “live deals”, and giving themselves the ability to discontinue these specials at any time.

Some may only recall the more recent cases where we have seen lenders increase their fixed rates from 2.99% to 3.49% virtually overnight! A 0.5% increase translates to a cost of $26 dollars per month per $100,000 of outstanding mortgage loan. With the average mortgage sitting around $350,000 in the lower mainland, it adds up quickly to an extra $96 dollars a month in interest only. We have seen this before in the mortgage industry when it came to variable rate discounts. It’s likely we can this again in future.

Following are three ways you can protect yourself:

1. If you’re considering buying a home, get a rate hold from your mortgage professional who can shop your mortgage to multiple lenders with one application while protecting your credit score to ensure the best option.

2. A mortgage review will examine your options and help secure a rate hold if you’re up for renewal in the next year.

3. Verify you have given all required information and documentation to secure a rate hold. Withholding important information (either documents required for review or details of your income or current mortgage) will hold up the process.

You can complete an application over the phone or online one can be viewed at www.angelacalla.ca so you can prepare for the type of information you’ll need to gather for the process that if you’re prepared with your basic information can take 10 minutes.

With average savings of $96 a month (with the ability to change daily – even within hours in some cases), this is a prime example of how waiting for a trigger (such as an increase in rates ) instead of being proactive may affect your ability to save the most amount of money!

I can guide you through the process for a purchase or refinance/renewal to ensure you’re protected and that the best strategy has been implemented and rates secured on your behalf to save you the most amount of money in this ever-changing mortgage market.

Thank you for visiting

Angela Calla, AMP

Dominion Lending Centres-Angela Calla

Host of “The Mortgage Show” Saturdays @ 7pm on CKNW AM980

Phone: 604-802-3983 Email:callateam@dominionlending.ca

29 Mar

Federal Budget 2012 Highlights & Mortgages

General

Posted by: Angela Calla

Highlights are listed here http://www.cbc.ca/news/canada/windsor/story/2012/03/29/federalbudget-flaherty-hilights.html

3 points of interest as it relates to our mortgage market from todays budget:

1. CMHC Limits & regulation

2. Framework of oppertunities to private companies to assist the mortgage market

3. Limiting the insurance products the bank can sell.

Here is the full link from the Financial Post

http://business.financialpost.com/2012/03/29/ottawa-to-toughen-cmhc-oversight/

Working with The Angela Calla Mortgage Team we work without bias to get the best suited mortgage for you and are always here to help with your mortgage questions email us directly at callateam@dominionlending.ca

Thanks for Visiting

 

29 Mar

Own for $52/day in Yaletown from @willingtwo on @angelacalla #mortgage show @cknw

General

Posted by: Angela Calla

As heard on this weeks Mortgage Show on CKNW with Angela Calla Saturday March 31st 2012. To get pre approved for this property or any other purchase email the Angela Calla Mortgage Team at callateam@dominionlending.ca or call 604-802-3983

This weeks deal of the week has been brought to you by:

http://rboies.mlslink.mlxchange.com/?r=177160122&id=363434333136.312

Robert Boies
Royal LePage Coronation West
cell: 604 341 3009 t: willingtwo
E-mail: robboies@royallepage.ca
www.willingsellerwillingbuyer.com

Please note that properties like this move quickly and getting set up with Rob Boies directly robboies@royallepage.ca will keep you abreast of all of these types of oppertunities meeting your speciafications

Thanks for visiting

Angela Calla, AMP

 


23 Mar

Deal of the week @willingtwo @cknw #newwestminster

General

Posted by: Angela Calla

As heard on this weeks Mortgage Show on CKNW with Angela Calla Saturday March 24th 2012. To get pre approved for this property or any other purchase email us at callateam@dominionlending.ca or call 604-802-3983

This weeks deal of the week has been brought to you by:

http://rboies.mlslink.mlxchange.com/?r=755667701&id=363434333136.312

Robert Boies
Royal LePage Coronation West
cell: 604 341 3009 t: willingtwo
E-mail: robboies@royallepage.ca
www.willingsellerwillingbuyer.com

Please note that properties like this move quickly and getting set up with Rob Boies directly robboies@royallepage.ca will keep you abreast of all of these types of oppertunities meeting your speciafications

Thanks for visiting

Angela Calla, AMP

 


20 Mar

4 Reasons to Spring Into a Home Purchase by Angela Calla

General

Posted by: Angela Calla

Now is a great time for first-timers to consider taking the plunge into homeownership – while taking all the fundamentals into consideration. Owning real estate is a cornerstone of financial freedom, and it’s not an investment made for short-term gain. Following are four key points that make it hard to suggest why you wouldn’t take the plunge:

Fundamentals
You have to live somewhere, so if you’re going pay into something, why not your own mortgage? Homeownership makes sense as long as you obtain the proper terms to suit your changing lifestyle (for instance, the option to port your mortgage if need be), and you have worked out a budget that works for you and keeps your living expenses within your means. Considering the allowable rent increase for landlords this year is 4.3% (www.rto.gov.bc.ca/content/news/default.aspx), this is something worth noting. While not all landlords will choose to raise rent for their tenants, they do have the ability to do so! Vacancy rates are at an all-time low and net migration is remaining very strong (http://publications.gc.ca/collections/collection_2011/schl-cmhc/nh12-218/NH12-218-2011-1-eng.pdf).

Low interest rates
We’re still seeing interest rates at all-time lows, with the average 5-year fixed rates still well below 4%. If you have an inflation hedge mortgage strategy in place (automatically set up for our clients as part of the Angela Calla Mortgage Team service to optimize your mortgage in a changing market), you’ll have a balance that’s significantly lower. So, regardless of rates increasing at some point or property values remaining stable, you’ll be positioned to reduce your living expenses. This is all part of the crucial budgeting process that takes place when you get preapproved with the Angela Calla Mortgage Team.

Selection
There are several municipalities where you can own up to a two-bedroom condo for $200,000, including Port Moody, Port Coquitlam, Coquitlam, Surrey, Langley, Delta, and so on. An applicant who makes $35,000 gross annual income can qualify for a mortgage in this range (provided they do not have significant outside debts, have a good credit rating, and have a 5% down payment – in this example $10,000 – either saved or as a gift). The monthly payments would be approximately $800, plus strata fees and taxes estimated at $300. This is a total expense of approximately $1,100 a month, which works out to approximately $37 a day! The average rent in Vancouver is $1,100 a month. For some, this will be obtainable with the right goals and guidance. This may not work for all, but it shows you, it IS possible.

Rebates
There are new rebates available to you for 2012 if you’re buying a brand new home: for HST (www.hstinbc.ca/making_your_choice/faqs/new_housing_rebate/); and a buyer’s bonus  for up to $10,000 (www.angelacalla.ca/blog_post?id=6674&title=Understanding-the-Buyers-Bonus-Angela-Calla).

Homeownership is not for everyone, and careful consideration is required when you’re reviewing your options and budget. With the right time and knowledge, owning your own home is a cornerstone of financial freedom. It’s what we don’t know that costs the most! So before you rule out homeownership, speak to the Angela Calla Mortgage Team and receive all the facts!

Angela Calla, AMP Dominion Lending Centres Host of The Mortgage Show on CKNW AM980 Saturdays @7pm one of Canada’s Top Mortgage Agents and AMP of the year by CAAMP in 2009 can be reached at 604-802-3983 or acalla@dominionlending.ca