19 Aug

First-Time Home Buyer Incentive Program

General

Posted by: Angela Calla

The First-Time Home Buyer Incentive helps qualified first-time homebuyers reduce their monthly mortgage carrying costs without adding to their financial burdens.

Read more details here: First Time Home Buyers Incentive

Angela Calla is a 15 year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from a sales will help build a new emergency room at Eagle Ridge Hospital. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

15 Aug

Canadian home sales rise for fifth straight month as mortgage rates decline

General

Posted by: Angela Calla

Homes sales across Canada rose for the fifth consecutive month and recorded a double-digit increase compared to a year ago in part aided by interest rates, according to the Canadian Real Estate Association.

However, sales in Vancouver and Toronto, the two largest domestic markets, remained “well below” the levels achieved before mortgage stress tests were introduced last year, the association said.

Sales rose by 3.5 per cent in July compared with June and by 12.6 per cent versus the same month in 2018, the association’s figures show.

The Bank of Canada kept interest rates at 1.75 per cent last month after raising them five times from 2017 to last Oct.

“The extent to which recent declines in mortgage interest rates have helped lift sales activity varies by community and price segment,” CREA President Jason Stephen said in a statement. “All real estate is local.”

The number of new listings was almost flat, easing by 0.4 per cent in July as increases in Calgary, Toronto and Edmonton offset a decline in B.C. and Montreal, CREA said.

House prices were similar with gains of 0.6 per cent month on month and 0.2 per cent from a year ago.

“Sales continue to rise in housing markets where the mortgage stress test had little impact due to upbeat local economic conditions and a supply of affordably priced homes,” CREA Chief Economist Gregory Klump said in the statement.

“Meanwhile, the mortgage stress test is doing no favours for homebuyers and sellers alike in places facing challenging local economic prospects and subdued consumer sentiment.”

Financial Post

Angela Calla is a 15 year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from a sales will help build a new emergency room at Eagle Ridge Hospital. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

15 Aug

3 THINGS YOU MAY NOT KNOW ABOUT CASH-BACK MORTGAGES

General

Posted by: Angela Calla

About twice a year, one of the big Canadian banks likes to run an advertising campaign for their cash back mortgages. These are mortgages usually with 5 year terms where you receive a certain percentage back in cash. The percentage varies from 1% to 5% in most cases. You can use these funds to build a fence, landscape, buy window coverings etc. The idea is to be able to pay for some things that you would not be able to as you put all your money into the down payment and closing costs and need some help to get started.

1- There are multiple lenders who have cash back mortgages. Don’t jump at the first one you see. They all have different terms and conditions.
2. You are really getting a loan on top of your mortgage. The interest rate is calculated so that by the end of the term you will have paid the lender back the money they gave you and a little bit extra. Sometimes this little bit extra may be twice as much as you got in cash back.
3 – The average cash back mortgage is a 5 year term. Most Canadians move every 30 months. Therefore when you break a cash back mortgage you have to pay a penalty as per usual but you also have to pay back a portion of the loan that they gave you. If you are 36 months into a 60 month mortgage, you have to pay them back 2 years’ worth or 40% of the cash back. Combined with the penalty this can be a hefty sum. In addition, there are some lenders who require you to pay back 100% of the cash back if you want to break the term.

Before signing for a cash back mortgage it’s better to discuss your needs with The Angela Calla Mortgage Team.  We can advise you on cash backs, line of credit, Purchase plus Improvements or Flex Down mortgages which may be better for your situation.

– David Cooke

Angela Calla is a 15 year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from a sales will help build a new emergency room at Eagle Ridge Hospital. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

9 Aug

Mortgage default rates are not a problem

General

Posted by: Angela Calla

There is always a lot of talk about the growing debt in the personal finances of everyday Canadians. And to some extent, it may be true. No doubt, many consumers have gotten used to throwing things on a credit card and then moving on to the next big purchase. The federal government was so concerned about personal debt, they enacted a bunch of rules related to qualifying for a mortgage in an effort to cool off the market. The politicians in Ottawa were concerned a sub-prime mortgage fiasco like the one that devastated the U.S. and world economy a decade ago would happen in Canada. You could argue, the intentions of these tougher qualifying rules were noble, but evidence suggests these measures weren’t really warranted. The most recent numbers by the Canadian Bankers Association (CBA) seems to dispel the concerns by the federal government.

According to the CBA, at the end of January 2019, just .25 per cent of mortgages through the major banks were in arrears of three months or more. For more perspective, out of the 4.75 million mortgages in Canada through the banks, 11,742 were in arrears. That’s basically statistically insignificant. And what it also seems to suggest, is that Canadians are actually very responsible when it comes to paying their biggest bill on time.

A closer look at the numbers also appear to blow Ottawa’s case for tough mortgage rules out of the water.

The hottest markets during the last decade were Ontario and B.C. Home prices skyrocketed in cities like Vancouver and Toronto, the average price of a single-family home climbed to more than $1 million.

There was a wide concern that homebuyers were taking on too much mortgage and would end up under water. Again, the CBA’s stats seem to suggest otherwise. Both B.C. and Ontario have the lowest rate of arrears among the provinces. In Ontario, just .10 per cent of mortgages are in arrears, while in B.C., it’s slightly higher at .15 per cent. Just 955 mortgages in B.C. were in arears at the end of January 2019 out of more than 643,000. The Atlantic province had the highest percentage of mortgages in arrears at .52 per cent.

Obviously any amount of people struggling to keep their home is unfortunate. It would be ideal if not a single homeowner defaulted on their mortgage. With an election this fall, it’s anyone’s guess where the mortgage qualifying rules are going to go. But statistically speaking, the mortgage industry is on very solid ground and Canadians are more than capable of paying their mortgage on time.

Angela Calla is a 15 year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from a sales will help build a new emergency room at Eagle Ridge Hospital. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

9 Aug

4 costs to consider as a first-time homebuyer

General

Posted by: Angela Calla

Oftentimes even the most organized and detail oriented first-time homebuyer can overlook some unexpected costs that come with the purchase of their new home. We are outlining four of the costs that we most commonly see overlooked by homebuyers in hopes that we can better prepare you—and save you from a few surprises!

 

  1. Closing Costs

    Congratulations! Your offer was just accepted on your new home, you’re one step closer to adding a major asset to your portfolio! We don’t want to shock or dampen the excitement of this moment. However, it’s important that you factor in closing costs right at the beginning of your purchase. The best time to do this is before even applying for your pre-approval or making any offers on a home. Closing costs may include:

    • insurance
    • taxes (Land Transfer, Property, and others depending on what province you are in)
    • legal/notary fees
    • inspection/appraisal fees.

    A general rule of thumb is to set aside 1.5 per cent of the purchase price to account for the closing costs above. To plan ahead, consider speaking to a mortgage broker and your realtor. They can help you determine just how much you should set aside to accommodate those additional closing costs.

2. Utility Bills

If you’ve gotten used to living in a small space, such as a condo or an apartment, you may be surprised how much more water, heat, and energy you consume in a larger space such as a detached home or a townhouse. It’s important to prepare for these as you do not want to have a “surprise” when your bill arrives in the mail and it’s nearly double what you are used to spending!

Factoring in these bills is also crucial if you are going from renting to owning! Often times the landlord will cover a portion of your utility bills or your cable/internet depending on the contract you had with your landlord. Of course, once you are a homeowner, you are covering the entire cost! Ask family members, friends, even your mortgage broker or realtor what is a realistic cost for things such as cable and internet, water, heat, etc. You’d be surprised how fast they can add up!

3. Renovations and Updates

Unless you bought a newly built, brand new home, there is undoubtedly going to be future renovations and updates that you will need to do on your home. They may not need to happen right when you move in, but sometimes the unexpected does happen and having money set aside can make a world of difference! When you have your home inspection completed, make a prioritized list of what will need to be fixed/updated first and set aside money each month for it. In addition to the “must do” updates/renovations, new property owners may also want to make aesthetic improvements, whether they mean to reside there or not. Naturally, a homeowner wants to make the place feel more like their own, and investors want to add value their investment or make adjustments to make the asset more aesthetically pleasing.

4. Ongoing Maintenance

Homes require maintenance—all the time! Ask any homeowner and they will tell you that there is always home maintenance in one form or another happening.
A few common home maintenance costs may include:

• Gutter cleaning
• Roof repair/maintenance
• Drywall repair
• Furnace cleaning
• HVAC and Duct cleaning
• General plumbing and electrical fixes

Every home is different in regards to how much you should budget annually for regular maintenance. It will depend on the age of your home, square footage, climate in your region, and overall condition of your home.

In closing, property ownership shouldn’t be dampened by financial rules caused by lack of preparation. All of these costs, as well as additional other costs, are easy to plan ahead for and to ensure that you have budget set aside each and every single month to make sure that you stay on track. As a rule of thumb, the CMHC states that your housing costs including mortgage payment should not exceed 39 per cent of your monthly income. Treat this number as a point of reference when you’re doing your budget and consider leaving room for the unexpected. It’ll give you peace of mind on the long run and allow you to actually enjoy your new home!

Angela Calla is a 15 year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from a sales will help build a new emergency room at Eagle Ridge Hospital. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

8 Aug

Unsung Women’s Heroes Sought for Recognition

General

Posted by: Angela Calla

The Women’s Collaborative Hub (WCH) is looking for unsung women heroes to honour and celebrate.

Nominations are open for the third annual WCH Women Influencer Awards, put on by the group that encompasses Coquitlam, Port Coquitlam, Port Moody, Pitt Meadows and Maple Ridge. This year’s event will be held Nov. 17 at the Hard Rock Casino Vancouver in Coquitlam.

The awards recognize women who make a positive difference to those around them and whose influence benefits the community.

In 2018, WCH received 110 nominations that were considered by 32 community judges in a two-stage independent process.

“We found, supported by independent, global research, that women have a tendency to avoid promoting themselves and their accomplishments,” said Hub co-founder Sandra Horton in a press release. “We saw an opportunity, through the Women Influencers Awards, for the community to acknowledge their accomplishments for them in order to inspire confidence and self-esteem. These women do so much for our communities, and they deserve to be recognized.”

The categories for nomination are for beyond the call of duty, sustainability champion, inspirational Wonder Woman, exceptional educator, emerging influencer, extraordinary leader, community steward, Indigenous leader, and new immigrant influencer. Nominations can be made online at womenscollaborativehub.com/awards. The deadline is noon on Oct. 4.

The event’s MC will be mortgage specialist Angela Calla with Lotte Davis, founder of One Girl Can, as the keynote speaker.

-newsroom@tricitynews.com

Angela Calla is a 15 year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from a sales will help build a new emergency room at Eagle Ridge Hospital. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.