16 Nov

I’ve Never Heard of That Lender Before

General

Posted by: Angela Calla

One of the benefits of working with an independent mortgage professional; compared to getting your mortgage through a single institution, is choice. And as there are even more mortgage rules coming into place January 1st 2018, now more than ever, having access to a wide variety of mortgage products is going to ensure you get the mortgage that best suits your needs.

Working with an independent mortgage professional will give you access to varying products from many different lenders, some of these lender you may have never even heard of, but that’s okay. Sure, RBC, BMO, and CIBC, are more household names compared to say, MCAP, RMG, or Merix Financial, but as each lender has a different appetite for risk (there is always a risk when lending money) how do you know which lender is going to have the products that are going to be the best fit for you?

Typically the conversation develops into something like this: “I’ve never heard of this lender before, are they safe, I mean… I have no idea who they are”? And although that is a valid question, there is a simple answer. Yes. Yes they are safe. All the lenders we work with are reputable and governed by the same regulator as the big banks. Ultimately, you have their money, they don’t have yours! But let’s answer a few of the common questions often asked about these lenders accessed only through an independent mortgage professional.

Why haven’t I heard of any of these lenders?
Instead of spending all their money on huge marketing campaigns (like the Canadian big banks) which drives up the cost of their product, broker channel lenders rely on competitive products and independent mortgage professionals to secure new clients.

What happens if my lender gets purchased by another lender?
This actually happens quite a bit, however, it’s business as usual for you. Even if your mortgage contract gets sold, the terms of your mortgage stay intact and nothing changes for you.

What happens if my lender goes bankrupt or is no longer lending at the end of my term?
This would be the same as if the lender was purchased by another lender. The only difference is, at the end of your term, we would have to find another lender to place your next term. And as this is already good practice, it’s business as usual. Again, you have their money, they don’t have yours. The contract would stay in force.

Why don’t these lenders have physical locations?
Much like why you haven’t heard of these lenders, they save the money on advertising and infrastructure, and instead focus on creating unique products to give their clients more choice. These lenders rely on independent mortgage professionals for awareness and compete on product not public awareness.

Do they really have better products?
Yes. Well, I guess we have to define what is meant by better products. If by better products you mean a variety of products that suit different individuals differently, then yes. Across the board, each lender has a different appetite for a different kind of risk. For example, while one lender might not include child tax income as part of your regular income, another might. While one lender might look favourably on a certain condo development, another might not. Each lender sees things a little differently. Knowing the products and preferences at each lender is what we do!

When it comes to mortgage qualification, some broker channel lenders are more flexible than others (or the banks) and offer different programs that cater to self-employed, people who are retired, own multiple properties, or rely on disability income. While as it relates to the features of the mortgage, different lenders offer many different features.

Some mortgages can be paid off at an accelerated pace with little to no penalty, some accommodate different payment structure, some products are set at lower rate, but sacrifice flexibility.

At the end of the day, the goal should be to qualify for a mortgage that has the features that suit your individual needs. Regardless of which lender that is. If you would like to talk about your financial situation, and see which lender best suits your needs, please don’t hesitate to contact a Dominion Lending Centres mortgage specialist.

Michael Hallett
Dominion Lending Centres – Accredited Mortgage Professional

Angela Calla has been a licensed mortgage broker for 14 years. She has been with Dominion Lending Centres since its inception in January 2006. Residing in Port Moody, British Columbia, Angela is a regular expert guest on several news stations, television shows, radio programs and local and national publications. She was the AMP of the year in 2009, and has consistently been one of DLC and the industry’s top performers since 2006. She can be reached at callateam@dominionlending.ca or 604-802-3983

8 Nov

Angela Calla & Terry Hawes in CPA Magazine on Real Estate Investing

General

Posted by: Angela Calla

A major driver of economic growth, Canada’s real estate and housing market has been a hot prospect for buyers here and abroad for decades. And with good reason. Even with recent price hikes in some markets, Canada has shown a lot of underlying stability in comparison with other countries. Plus, our property laws to this point have generally favoured investors.

For those eager to get in on the action, take heed. Whether you’re a first-time buyer or a seasoned one, there are plenty of considerations to take into account when buying property for personal use or as an investment.

Here’s a sampling: The Real Estate Investor’s Toolkit

The best mortgage plan is one that is developed by assessing your goals and life stage. The Angela Calla Mortgage Team will help you personally call us at 604-802-3983 or email callateam@dominionlending.ca. To contact Angela Calla directly call 604-802-3983 or visit www.angelacalla.ca

1 Nov

Tri-Cities Chamber of Commerce

General

Posted by: Angela Calla

Angela Calla at the Tri-Cities Chamber of Commerce Luncheon. Angela is nominated in two categories, 2017 Young Professional of the Year and 2017 Business of the Year (1-10 Employees).

Carlo Zarillo presenting Angela with the nomination

Angela with Marisa Jellicoe from Altac Services who is up for Business of the Year. Friend of The Angela Calla Mortgage Team.

Have a look at the other nominees in the category of Young Professional of the Year. Good luck to all!

27 Oct

A-List 2017 Tri-City News Awards

General

Posted by: Angela Calla

Such an honour to win the A-List 2017 Award for best Mortgage Broker in the Financial Advisor category as voted for by the residents of the Tri-Cities. Thank you to everyone who voted and everyone who is a part of my success. Especially, my amazing team that I am blessed to work along side everyday!

Congratulations to all the winners!

Mike and Zolan of Dulux Paints

Sharon Perry, Accountant and Catherine Shelast, We Hair

Glen Braid, Diamonds by Design and Rob Boies, Royal LePage

Chris Wilson, Coquitlam City Council

19 Oct

Tougher Rules for Mortgage Lending

General

Posted by: Angela Calla

Ottawa plans to move forward with regulations that would make it tougher for Canadians to qualify for uninsured loans, affecting consumers with down payments of 20 per cent or more.

In final guidelines published Tuesday, the Office of Superintendent of Financial Institutions even tweaked its original proposal forcing borrowers to also qualify for mortgages based on a potentially higher Bank of Canada five-year posted rate, a restriction Ottawa forced on all government-backed loans back in 2016.

Read full article: Toughers Rules for Mortgage Lending

The best mortgage plan is one that is developed by assessing your goals and life stage. The Angela Calla Mortgage Team will help you personally call us at 604-802-3983 or email callateam@dominionlending.ca. To contact Angela Calla directly call 604-802-3983 or visit www.angelacalla.ca

19 Oct

Motion to give residents priority for pre-sale homes approved in Vancouver

General

Posted by: Angela Calla

Vancouver City Council has approved a motion to give Metro Vancouver residents priority in pre-sale home purchases in the city.
The motion, proposed by Mayor Gregor Robertson, was approved by Council members in a regular meeting on Tuesday.

It was approved in a 7-2 vote, with both NPA councillors George Affleck and Melissa De Genova opposed.
The motion asks City staff to create a framework for new development applications that gives people who live and work in Metro Vancouver the first chance to buy new pre-sale homes here.

Read the full article: Motion to give residents priority for pre-sale homes approved in Vancouver

The Angela Calla Mortgage Team gives you clarity on the best mortgage by being transparent, unbiased free mortgage advise with choice. We are here to help you personally with your mortgage at 604-802-3983 or callateam@dominionlending.ca

16 Oct

What is an interest rate differential (IRD)? How do you calculate it?

General

Posted by: Angela Calla

A mortgage in its simplest form is a contract. It has terms, conditions, rights and obligations for you and the lender. When you sign on the dotted line, you are agreeing to those terms for the length of time laid out in the contract. However, sometimes life throws us an unexpected event that brings around the need to make key decisions and changes. One of these changes, for whichever reason, might be needing/wanting to break your mortgage contract before the end of the term. Can you do that? What are the penalties? Let’s take a look!

To answer the initial question of can it be done, the answer is yes. Most mortgage lenders will allow this provided they receive compensation. Compensation is known as an Interest Rate Differential or IRD. When you started your fixed rate mortgage you had a rate of xx.x%, but the best they can lend to someone else right now is 1% less, so they want the difference. Seems fair, right? However, like most contracts, the fine print tells the true tale. The method in which the IRD is calculated is what borrowers should be aware of.

Let’s examine a few different calculations that can be used for IRD.

Method “A” -Posted Rate Method – Generally used by major banks and some credit unions

This method uses the Bank Of Canada 5 year posted rate to arrive at the formula to calculate the penalty. It also considers any discounts you received. These are the ones you will commonly see on their websites or when you first walk into the Bank or Credit Union. Now, rarely does anyone settle on that rate-there is a discount normally that is given. This gives you the actual lending or contract rate. When this method is used, you will be required to pay the greater of 3 months interest or the IRD. What that looks like is:

Bank of Canada Posted Rate for a five-year term: 4.89%
You were given a discount of: 2%
Giving you a rate of 2.89% on a five-year fixed term mortgage.

Now you want to exit your contract at the 2-year point, leaving 3 years left. The posted rate for a 3-year term sits at 3.44%. The bank will subtract your discount from the posted 3-year term rate, giving you 1.45%. From there your IRD is calculated like so:

2.89%-1.45% =1.44% IRD difference x3 years=4.32% of your mortgage balance.

On a mortgage of $300,000 that gives you a penalty of $12,960.

For most, that is a significant amount that you will be paying! It can equate to thousands and thousands of dollars, depending on the mortgage balance remaining. So what other methods are used? Let’s take a look at the second one.

Method “B”-Published Rate Method – Generally used by monoline (broker) lenders and most credit unions

This method is more favourable as it uses the lender published rates. Generally, these rates are much more in tune with what you will see on lender websites and appear to be much more reasonable. Again, let’s look at an example.

Your rate: 2.90%
Published rate: 2.60%

Time left on contract: 3 years

Equation for this: 2.90%-2.60%=0.30% x3 years=0.90% of your mortgage balance. A much more favourable outcome. On a $300,000 mortgage that would equate to only $2,700.

The above two scenarios operate under the idea that the borrower has good credit, documented income, and a normal residential type property. It is also a fixed rate mortgage, not a variable one. For variable rates, if the contract needs to be broken, generally the penalty will be a charge of 3 months interest, no IRD applies.

So, if you do find yourself in a position where you need to end your contract early get in touch with a Dominion Lending Centres mortgage broker to review your options. To avoid any surprises all together though, it is advised to consult with a mortgage professional right from the start. We are committed to ensuring that you make an educated decision when selecting a lender. Yes, we want to get you the best rate, but we also want to make sure you are taken care of.

Courtesy of Geoff Lee, DLC

The Angela Calla Mortgage Team gives you clarity on the best mortgage by being transparent, unbiased free mortgage advise with choice. We are here to help you personally with your mortgage at 604-802-3983 or callateam@dominionlending.ca

16 Oct

3 Tips That Could Save You Thousands on Your Mortgage

General

Posted by: Angela Calla

Sean Cooper wiped off his $255,000 mortgage in exactly three years and two months, at age 30. Read the article below to see how these 3 tips can save you thousands.

#1) Shop around – and not just for the lowest rate
#2) Make lump-sum payments whenever you can
#3) Accelerate your mortgage payments

Full article: 3 Tips That Could Save You Thousands on Your Mortgage

Angela Calla, Mortgage Expert, AMP of the Year in 2009 has been helping British Columbian families save money with the best mortgage strategy for over a decade from her Port Coquitlam office location. She is a regular contributor to national and regional media outlets and long time host of The Mortgage Show on CKNW Saturdays at 7pm, and sits on many advisory boards for mortgage lenders & insures. Contact us directly at 604-802-3983 or callateam@dominionlending.ca its never too early or too late to start planning to position yourself best in the market

10 Oct

The Now News – Business Excellence Nominees

General

Posted by: Angela Calla

The Now News Announces Business Excellence Nominees

Angela Calla has been a licensed mortgage broker for 14 years. She has been with Dominion Lending Centres since its inception in January 2006. Residing in Port Moody, British Columbia, Angela is a regular expert guest on several news stations, television shows, radio programs and local and national publications. She was the AMP of the year in 2009, and has consistently been one of DLC and the industry’s top performers since 2006. She can be reached at callateam@dominionlending.ca or 604-802-3983