FIRST FORMAL REMARKS BY TIFF MACKLEM, BANK OF CANADA GOVERNOR

There were no surprises this morning from Governor Macklem’s virtual presentation to the Canadian Clubs of Canada. His opening written statement was quite brief and it was followed up with a Q and A. Here are the key points that he emphasized.

• Negative interest rates are off the table as they “lead to distortions in the behaviour of financial markets.”
• Therefore, no additional Bank of Canada rate cuts are coming.
• The BoC will continue its securities purchase program to provide liquidity to financial markets.
• In response to questions, he said he expects lasting damage to demand and supply in the economy. He said the recovery will be “long and bumpy” and “slow and gradual”.
• The inflation target of 2% will remain the beacon for BoC policy. Currently, inflation is below target.
• “This recession is a deep one. Women have been particularly hard hit because they work disproportionately in the hard-hit service sector and women are disproportionately caring for children and the elderly”.
• Fiscal support programs lay the foundation for the recovery of particular groups.
• Oil-producing regions are hard hit by the oil price shock. The price of oil has moved up recently to WTI $40, but the pandemic clearly “weakens oil demand”.
• Household debt levels are a concern. Fiscal transfers help and households have reduced their spending. The role of the BoC is to provide the required stimulus to encourage households to spend. The macroprudential measures already in place will discourage highly indebted households from taking on more debt.
• He expects “pretty good growth in jobs and GDP in Q3”. Beyond that is more uncertain as we will need to repair the economy.
• All institutions must speed up actions to deal with climate change, including the BoC. We will need to get a handle on the implications of this for the economy.
• Chartered banks are more conservative in their lending practices since the pandemic hit. The securities-purchase programs are intended to keep credit flowing from the banks. The banks are an important shock absorber during this recession. Conditions in financial markets are much improved since the beginning of the crisis. “Markets have normalized and credit is flowing more freely”.
• Both the government and the BoC have introduced extraordinary programs to deal with this crisis. He said, however, that we could use “additional international assistance and cooperation”.
• Real estate question–How much risk does this sector represent? The Governor commented that different sectors will behave differently Warehouse and fulfillment centre demand is quite strong. Commercial real estate outlook is uncertain– particularly office space and shopping malls. Housing–he commented that “sharp drops in housing activity” has led to “little change in prices” thus far. This will vary by region and type of housing in the future.  
• “The pace of change is accelerating. Societies around the world are having trouble keeping up. The central bank must get ahead of this” and be prepared for the unknowns, be agile and resolute.
• Asked about the potential for a second wave of a pandemic, he said, “The outlook is fraught with uncertainty. The biggest uncertainty is the course of the virus. There will be increases in the number of cases. We need testing and tracing with quick responses locally. We need to determine how to open up safely.”
• When asked for his last word, he said, “We are going to get through this. Canadians are resourceful, business ingenuity is strong, this will be a long slow recovery and there will be setbacks. We have avoided the worst scenario. Not all jobs will come back. The Bank is laser-focused on supporting this recovery and getting Canadians back to work”.

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Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at callateam@dominionlending.ca or 604-939-8777.

Angla Calla teamed up with the Real Estate Board of Greater Vancouver to help you navigate the market during changing times.

Learn how COVID-19 has changed the mortgage landscape, changes to the stress test, and the best mortgage advice for homebuyers.

PART I

PART II 

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at callateam@dominionlending.ca or 604-939-8777.

Getting pre-approved can be a vital step to the home-buying process! But don’t confuse this with pre-qualification; you can get a pre-qualification through the My Mortgage Toolbox app to determine what you might qualify for. Pre-approval, on the other hand, means that a lender has stated (in writing) that you do qualify for a mortgage and what amount, based on your current income and credit history. A pre-approval usually specifies a term, interest rate, and mortgage amount and is typically valid for a brief period of time, assuming various conditions are met.

In order to get pre-approved, you must submit and verify your financial history. I can walk you through this process and assist in finding you the best mortgage to suit your needs. Not only will getting pre-approved help speed up the process when you do find that perfect home, but it also helps determine the most accurate budget to fit your needs and the actual home price you can afford.

In fact, pre-approval can help you to determine three very important things:

• The maximum amount you can afford to spend
• The monthly mortgage payment associated with your purchase price range
• The mortgage rate for your first term

Not only does getting pre-approved make the search easier for you, but helps your real estate agent find the best home in your price range. Temptation will always be to start looking at the very top of your budget, but it is important to remember that there will be fees, such as mandatory closing costs, which can range from 1 to 4% of the purchase price. Factoring these into your maximum budget can help you narrow down a home that is entirely affordable and ensure future financial stability and security.

While getting pre-approved doesn’t commit you to a single lender, it does guarantee the rate offered to you will be locked in from 90 to 120 days which helps if interest rates rise while you are still shopping. If interest rates actually decrease, you would still be offered the lower rate.

Another benefit to pre-approval is that, when it comes time to purchase, pre-approval lets the seller know that securing financing should not be an issue. This is extremely important for competitive markets where lots of offers may be coming in.

Protecting Your Pre-Approval

Once you have gone to the trouble of getting pre-approved and determining the boundaries of your budget and mortgage payments, you will want to make sure that you take action to protect the rate you have been offered.

To protect your pre-approval, there are a few things to keep in mind:

• Refrain from having additional credit reports pulled once you have been pre-approved
• Refrain from applying for new credit, closing off credit accounts or making large purchases until after the sale is complete
• Be prepared to show a paper-trail – any unusual deposits in your bank account may require an explanation. Also, if your down payment comes from savings, the bank will want 90 days of statements to ensure the funds are accounted for.

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at callateam@dominionlending.ca or 604-939-8777.

As exciting as it is to start your journey towards home ownership (or even up- and down-sizing), there are a few things you should consider first.

Most importantly, you need to determine your purchase range. Having the proper budget for your future home is the best way to ensure future financial success! To create a proper budget, you need to look at your monthly income and expenses to determine how much you can afford in monthly mortgage payments. Download my Mortgage Toolbx app directly above this article and create a profile today to access all of the amazing features, including mortgage estimates and budgeting tools. From there, you can determine your purchase price! Ideally, it is best to try and find a home that fits your needs that is below your maximum budget, which will give you a lower mortgage payment and a little more financial freedom and security for the future.

Beyond determining what you can afford, you need to identify your housing needs. It is important to know that, unless you build it yourself, no home will have everything you are looking for. However, you can find a home with most of the things you want and all of what you need if you are able to be a little bit flexible and realistic about your deal breakers. You should have a list of your must-have items that you cannot do without, such as needing a second bathroom or a third bedroom for a growing family. Your list of must-have items, or needs, should be things you cannot change; flooring and paint color should never be on this list.

Once you have your list of needs and your budget, you can connect with me and begin the pre-approval process (more information on that below). I can also help to connect you with a real estate agent to begin your search.
Remember, whether it is your first or fourth house, home-hunting can be a process. Be prepared to revisit your list and homes several times to find the right fit. It is out there! As long as you stay within your budget, you will not only build equity in your new home but you will have a solid financial foundation to continue growing from.

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at callateam@dominionlending.ca or 604-939-8777.

Owning a home remains the largest single investment for most Canadians so it’s not surprising that the fear of an economy turned upside down hits home for many.

The Canada Mortgage and Housing Corporation (CMHC) recently warned the pandemic, and resulting lockdown of the economy could drive Canada’s average home prices down by 9-18%. As job loss and uncertainty forced many Canadians to the sidelines, the federal housing agency expects the housing sector will not return to pre-pandemic levels until the end of 2022.

Most of the concern centers on oil-producing regions hit hard by the crash in crude prices. Housing analysts also point out vulnerability in big cities such as the booming Vancouver and Toronto condo markets.

That’s potential bad news for speculators or those who just bought a home in a vulnerable region and want to sell in the next three years. For most long-term homeowners who can maintain a sufficient source of income, the best and safest investment remains the roof over their head.

According to the CMHC, average Canadian house values have increased by over five percent annually over 25-year periods going back to the Second World War. That includes the 2008 global financial meltdown when predictions for a housing market collapse never materialized.

Many homeowners have already benefited from the pre-pandemic housing boom, and for new homeowners, any decline over the next three years can easily be absorbed once the market gets back on track.

For potential homeowners, the next three years could finally open an affordable window to the residential real estate market.

While a home should never be the only investment in a retirement portfolio, it’s unique from other investments in terms of risk. Other equity investments have intrinsic values, but they can be difficult to measure consistently in relation to their price. Bitcoin, for example, has no intrinsic value because it is backed by nothing. The only value in bitcoin is a belief by investors that it has the intrinsic value of its trading price.

Real estate is the only investment you can actually live in. It’s an asset you can rest your head in it at the end of the day no matter what value the market places on it. In addition to the potential for it to go up in value over time, a home pays a sort of dividend equal to the cost of rent, and upon sale, it’s the ONLY investment where you pay no tax on the gains!

Homeownership also allows average investors to build equity by borrowing at a low-interest rate in the form of a mortgage by using the property as collateral. Over time, that equity can be used to borrow to fund lifestyle, build a portfolio or investment or properties, or fund a business or help a loved one financially.

Perhaps the biggest and hardest measure of the intrinsic value of a home to quantify comes from its newfound role as a sanctuary during a global pandemic. The value of a home in a time when social distancing could become the norm for years to come is immeasurable. Being cooped up with the people closest to your heart can be frustrating at times but can offer rewards well beyond its market value.

Although the economy has been turned upside down there will always be an economy as long as there is a demand for something. Investment trends may come and go but the desire to own a home will always drive demand.

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at callateam@dominionlending.ca or 604-939-8777.

There has been a lot of discussion around mortgage insurance qualifications as of late. We can rest assured knowing private default insurer Genworth Canada saw no need to follow CMHC and tighten its mortgage rules. Canada Guaranty, which has the lowest loss ratio in the mortgage insurance industry, made the same determination, saying, “Given the implementation of the qualifying stress test and historic default patterns, Canada Guaranty does not anticipate borrower debt-service ratios at the time of origination to be a significant predictor of mortgage defaults.”

CMHC is not banning all borrowed down payments. It will still allow down payment funds that originate from:

• A loan from one’s own RRSP (using the Home Buyers Plan).
• A HELOC on another property that the borrower owns.
• A HELOC on a property their parents own (if the parents gift those funds to the borrower).
• Note: CMHC will no longer allow down payment funds from unsecured borrowing. That includes from a HELOC on a property the borrower’s parents own — if the parents loan those funds to the borrower.
• CMHC adds that “eligible traditional sources of down payment may include: savings, the sale of a property, non-repayable financial gift from a relative, funds borrowed against their liquid financial assets, funds borrowed against their real property, or a government grant.”

It’s Now Official: Our neighbour to the south is now in recession.

Double the Deferrals: Canada’ has nearly twice as many people deferring mortgage payments than the U.S.

Rate cuts: There have been a lot of decreases (and misreporting on this). We help secure these for those who qualify.

Record Home Prices: It’s almost like GTA home prices are taking their cues from the stock market. If HouseSigma’s estimate is right and the trend continues, GTA home values could potentially set a record in June.

Fully Reversed: Rates on reverse mortgages sprang up in April, but now every single reverse mortgage rate in Canada is below 5% — for the first time ever.

Brokers Kill It: Despite all the headwinds from online competitors, banks, a slowing economy, and mortgage regulations (or perhaps because of mortgage regulations), Canada’s two leading mortgage broker firms are cleaning up. Dominion Lending Group posted a vigorous 30% growth rate and $8.4 billion of closed mortgages in the first quarter. Meanwhile, Rival M3 Mortgage Group told the Spy it closed 32% more deals and $9.3 billion in Q1. M3’s EVP Dino Di Pancrazio said:

“Our brokers are less reliant of walk-in traffic and most are used to doing business at a distance.” They’re also used to “advising customers in many different financial situations and I think that this became increasingly valuable as some people saw their salaries cut or lost their jobs.”

Even in the face of unprecedented change, there are positive factors to consider. We will get through this and recover stronger than before.

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at callateam@dominionlending.ca or 604-939-8777.

In addition to yesterday’s announcement from Genworth Financial, Canada Guaranty confirmed that there will be no changes to their underwriting policy that we’ve seen contemplated as a result of recent industry announcements.

“Canada Guaranty utilizes a dynamic underwriting process where our underwriting policies are consistently updated to reflect evolving economic environments and emerging mortgage default patterns. This philosophy has resulted in the lowest loss ratio in the industry. Recent insurer announcements relating to down payment and minimum credit score represent a very small component of Canada Guaranty’s business, and we will continue to be prudent in these areas. Given the implementation of the qualifying stress test and historic default patterns, Canada Guaranty does not anticipate borrower debt service ratios at the time of origination to be a significant predictor of mortgage defaults.”

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Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at callateam@dominionlending.ca or 604-939-8777.

Do you or a loved one live with a disability?

I love learning how families can learn what options are out there to help them. While I’m not a financial planner, I am grateful to know the best ones. If you want to see how this can help you or a loved one, email us at callateam@dominionlending.ca and I can introduce you. ❤️

This Webinar replay talks about the Disability Tax Credit and the Registered Disability Saving Plan. It has some very specific details that pertain to Diabetes but overall information would be useful for all.

Angela Calla is a 16-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 all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

Genworth MI Canada Inc. (the “Company“) (TSX: MIC) confirms that it has no plans to change its underwriting policy related to debt service ratio limits, minimum credit score and down payment requirements. One of the Company’s competitors announced changes to their internal underwriting guidelines with respect to the aforementioned underwriting criteria on June 4, 2020.

“Genworth Canada believes that its risk management framework, its dynamic underwriting policies and processes and its ongoing monitoring of conditions and market developments allow it to prudently adjudicate and manage its mortgage insurance exposure, including its exposure to this segment of borrowers with lower credit scores or higher debt service ratios,” said Stuart Levings, President and CEO.

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Angela Calla is a 16-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 all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.