11 Dec

A shifting market…again

General

Posted by: Angela Calla

The recent data sure has changed the tone of rates in the coming months.

The prime rate – what variable rates are based on, while a few short weeks ago was expected to rise three times in the next 18 months now with the data on the slowing of the market and uncertainty in projects moving forward as expected, there are signs increases could be delayed until next spring.

The bond market- what fixed rates are based on, has dropped, which means rates (after the banks have hung on as much as possible ) should come down slightly.
What does his mean for borrowers? Let’s break it down per segment

1- Homebuyers – more affordability due to the recent dip in prices – pending price category anywhere from 10-30%. Remember, working with an unbiased mortgage professional we do a full look back upon closing to ensure the lowest cost of borrowing.

2. Home sellers – price sharp if you want to sell or else no point in being on the market.

3. Renewals rejoice – payment shock shall be reduced upon renewal.

4. Those carrying debt outside of a mortgage ex: credit cards, car payments, lines of credit – now is your time to see how much money moving that debt into a new restructured mortgage will improve your cash flow. It’s the most effective strategy for protecting your credit.

The most constant theme in everything above: The market is always changing, yesterday’s news is exactly that. Aligning yourself with the front-line experts who will help you with clarity in the ever-changing market. This is why while experts can give you the data on the current market – it’s always subject to change. The decisions a borrower makes is their responsibility to adapt to.

Angela Calla is a 14 year award-winning woman of influence mortgage expert. Along side 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.

11 Dec

How to avoid the Holiday Debt Hangover

General

Posted by: Angela Calla

Let’s face it, the memories we create with people are what last a lifetime. Have you ever sat with someone who said – I wish I could live a longer to have more stuff? Or would they rather have time with loved ones? Here’s a few ideas to make a memory.

1. What are you both passionate about? Food? Volunteer to cook for the Ronald McDonald house or distribute food at SHARE or your local food bank as an example.

2. Print your favourite photo of you and your friend from that year; these are prized possessions from what we see in homes and offices.

3. We are surrounded with beauty living in the most beautiful city in the world. Plan to do the Coquitlam crunch , Stanley park Seawall in Vancouver or Grouse Grind in North Vancouver; plan a date with quality time and health.

4. It’s time to purge for the New Year. Clear the clutter from your house, then donate it to your local mother’s group or society that’s collecting donations. It feels good to give and someone’s “no more” is someone else’s treasure. The Tri-Cities Mom’s Group is great. I’m sure you likely have a local chapter. The Diabetes Association will come to your house to pick up your stuff for free! As you clear the clutter, remember that you are also doing an emotional and spiritual cleanse. This should remind you just how wasteful at times we can be and when we have clutter in our homes, it translates to our minds. We need to make room for more space and clarity to bring more love and opportunities in our lives.

5. Give the gift of education. Knowledge is power and if you are going to buy gifts, look to do so with a social conscience and buy from companies that support the organizations you would like to see supported.

6. As a best-selling author of the Mortgage Code and 70% of Canadians being homeowners and 100% needing somewhere to live, I feel my book is a fabulous investment for your loved ones. The book is empowering and ALL the proceeds go to The Eagle Ridge Hospital and building a new Emergency Room. Group purchases and employee or team benefits available and private signings based on availability.

7. If a material gift is a must, what about your points on your credit cards? If you have points, perhaps you can use them to buy gift cards to help with improving cash flow. Sometimes retailers do a gift with purchase to stretch that dollar even further.

Enjoy the season!

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

5 Dec

Bank of Canada’s Dovish Tone

General

Posted by: Angela Calla

As was universally expected, the Bank of Canada’s Governing Council held overnight interest rates steady at 1-3/4% as it heralded a weaker outlook for the Canadian economy. The dovish tone in today’s Bank of Canada statement is in direct contrast to its attitude when it last met on October 24. Since that time, the global economy has moderated, and oil prices have fallen sharply. Troubling prospects for Alberta’s energy sector have weighed on the economy as the U.S. has expanded shale oil production. Benchmark prices for “western Canadian oil–both heavy and, more recently, light–have been pulled down even further by transportation constraints and a buildup of inventories”. The Notley government in Alberta ordered production cuts this week leading the Bank to conclude that Canada’s energy sector will be “materially weaker” than expected.

The Canadian economy grew at a 2% annual rate in the third quarter, mainly in line with the Bank’s expectation, however, September data suggest significantly less momentum going into Q4. The biggest disappointment was the plunge in business investment, which likely reflected trade uncertainty (see chart below). Business investment outside of the oil sector is likely to improve with the signing of the new trade agreement USMCA, the new federal tax measures to improve capital depreciation write-offs, and ongoing capacity constraints.

Household credit appears to be stabilizing following a significant slowdown in recent months. However, the rise in interest rates this year has had a more substantial impact on credit-sensitive spending than many had expected. For example, plunging car sales add to evidence that higher borrowing costs are dampening economic activity possibly to a more significant extent than the central bank expected. Light vehicle sales dropped 9.4% in November, the most since 2009. As well, Bank of Canada data show growth in residential mortgages decelerated to 1.4% in September on an annualized three-month basis, the weakest pace since 1982.

The Bank has raised borrowing costs five times since July 2017. New home building declined for the third consecutive quarter, down an annualized 5.9% in Q3. Moreover, according to the Toronto Real Estate Board (TREB), Toronto’s housing market posted its biggest monthly sales decline since March while prices remained little changed. Sales in Canada’s largest city fell 3.4% in November from the previous month TREB reported today (see chart below).

The housing market in the Toronto region has been stabilizing after a slowdown in sales and prices earlier this year amid more stringent mortgage-lending rules. The market picked up its pace through the summer, though sales have declined for the third month in a row.

The drop in sales could in part be attributed to a decline in new listings, which fell 26% year-over-year. “New listings were actually down more than sales on a year-over-year basis in November,” Garry Bhaura, the president of the board, said in a statement. “This suggests that, in many neighbourhoods, competition between buyers may have increased. Relatively tight market conditions over the past few months have provided the foundation for renewed price growth.”

Here is a sampling of other factors that highlight some of the headwinds confronting the Canadian economy:

Economic data have been coming in below expectations according to Citibank’s Surprise Index, which tracks the difference between market expectations for economic indicators and their actual values. This index has trended downward since last summer and has been below zero since mid-October–around the time of the Bank of Canada’s last Monetary Policy Report (MPR) and the most recent rate hike.

The Macdonald Laurier Institute’s Leading Indicator fell 0.1% in October. The composite gauge’s first decline since January 2016 was primarily driven by a pullback in S&P/TSX Composite Index, which fell 6.5% on the month, as well as marked decreases in commodity prices.

As well, inflation pressures have diminished. For example, gasoline prices have tumbled by about 25 Canadian cents back toward a dollar a litre since October. The latest policy statement says, “CPI inflation, at 2.4% in October, is just above target but is expected to ease in coming months by more than the Bank had previously forecast, due to lower gasoline prices. Downward historical revisions by Statistics Canada to GDP, together with recent macroeconomic developments, indicate there may be additional room for non-inflationary growth. The Bank will reassess all of these factors in its new projection for the January MPR.”

Bottom Line: “Governing Council continues to judge that the policy interest rate will need to rise into a neutral range to achieve the inflation target,” the bank said in the statement, adding the appropriate pace of increases will depend on the “effect of higher interest rates on consumption and housing, and global trade policy developments.”

“The persistence of the oil price shock, the evolution of business investment, and the Bank’s assessment of the economy’s capacity will also factor importantly into our decisions about the future stance of monetary policy,” the bank said.

As recently as October, investors were expecting at least three more rate hikes in 2019. Currently, those expectations have lessened to no more than two. The Bank had previously estimated the “neutral” range for overnight rates at between 2.5% and 3.5%. Today’s more dovish statement might well indicate that rate hikes over the next year will be to levels well below this neutral range.

-Dr. Sherry Cooper

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 and insures.

20 Nov

MORTGAGE INTEREST RATE TIERS

General

Posted by: Angela Calla

Since we know that lenders can back-end insure our mortgages and that this specifically makes these mortgage investments more attractive to investors, what does it mean for borrowers (every day people like you and me)?

To recap, any mortgage that is inexpensive for a wholesale lender to get financing for allows the lender to pass on savings to their clients, meaning mortgages that are insured get the best rates! An insured mortgage is where a borrower pays the mortgage default insurance because they have less than 20% down payment and is required on all mortgages where the down payment is less than 20%.

But, lenders can also pay for insurance for their client! An “insurable” mortgage is one where the clients puts 20% down (or more), and their mortgage is approved as though a client is paying for insurance, but the actual insurance is paid for by the lender.

Rates for insurable mortgages are generally very similar to insured mortgages. An “uninsurable” mortgage is one where mortgage insurance is not available.

The graph below outlines what type of mortgages are insured, insurable or uninsurable.

So what does this all mean for you, the borrower?

If your mortgage is insurable, you may be able to get the best rates. What is interesting to note is that if you have a mortgage that was previously uninsured, your current lender cannot insure your mortgage but your mortgage may be insurable if you transfer to a new lender – this is where our opportunity lies!

As an aside, if your mortgage was previously “insured,” and you paid for mortgage insurance, you will also be offered the best rates upon transfer or renewal.

Please call your local Dominion Lending Centres mortgage professional if you have any questions.

-Ethan Pinsky

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

8 Nov

Sales are down, but house prices continue to rise in Hamilton and Burlington

General

Posted by: Angela Calla

Housing prices in Hamilton and Burlington continue to rise, even though sales continue to drop compared to 2017.

The Realtors Association of Hamilton-Burlington (RAHB) reported 1,035 sales of residential properties in October 2018, a 13.1 per cent decrease from the same month last year.

Overall sales are 17.7 per cent lower than last year at this same time; however, the average sale prices have increased for the month. Single-family home prices increased 5.9 per cent compared to October 2017, townhouse prices remained virtually the same, and apartment-style property prices are up by 11.6 per cent according to properties processed through MLS.

Read the full article here: Sales Are Down, But House Prices Are Up

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

7 Nov

WHY CAN’T YOU PORT YOUR MORTGAGE?

General

Posted by: Angela Calla

Policies are always changing, and when you port a mortgage, a FULL application must be approved and completely underwritten with full, credit, income, property and policy review.

It’s a mistake to believe that just because you already had a mortgage, you will easily get a new one. Policies and rates are changing rapidly and you need a strategy to stay informed. SO BEFORE you consider a move, understand the worst case scenario of what you qualify for without porting your mortgage so you avoid disappointment of falling into the 70% of people that don’t end up porting. Mortgages can be made simple, when you are empowered with relevant information relating to the current market and your life stage. Depending on those factors, you might be happy to get rid of your old mortgage and get in with the new! We have a mortgage for that, and can help. On average less than 3% of mortgages are portable.

Let me list a few of the reasons why:

1. Dates– most lenders have a different policy on the dates that will allow to port the mortgage; it can be weeks or months. Your closing date will determine that.

2. Amortization– porting a mortgage means you port the same amortization, so if you are moving up the property ladder, that may mean your payments are significantly increased making it less affordable or meaning you can’t qualify with your income.

3. Amounts– some have a 10% variance limit up or down, where the penalty will trigger or it’s no longer a fit within the policy.

4. Change in credit– depending on the credit score and outside debts you have will determine if you still fit the credit profile your previous mortgage had.

5. Income– if there has been a change in your income type or amount this will also impact the options.

6. Property type– some lenders only lend on single-family homes, or a particular zoning, or don’t do private sales- even if they did when you originally got your mortgage with them.

7. Rate– maybe the change in rates either way of the product type you took doesn’t allow for a port due to one or a few of the combined factors. For example, going from insured to uninsured comes with different policies.

8. Product– maybe the product you had no longer exists for your particular profile.

9. Inspections – maybe the lender approved it initially but after your inspection just as you wanted a reduction in price, they decide they are no longer going to lend on it or decide it doesn’t fit the profile or they wont do it under that program (instead you need a purchase plus improvements or a hold back they may or may not participate in and maybe want a different fix that you or a strata council agree on).

10. Bridge – if you want to buy before you sell, all the above factors come into play. Maybe the original lender doesn’t allow the length of time you need, there cost to bridge is much higher, or maybe they don’t approve that portion of the loan, which puts you back at square one.

Purchasing a home is complex, with many moving parts and needs to be understood as such. When you have The Angela Calla Mortgage Team by your side while lots of things can come up, we can guide you through what is best for your family, which is why we encourage you to be educated, and empowered so you are ready for your next part of your ownership journey.

Angela Calla is a 14 year award-winning woman of influence mortgage expert. Along side 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.

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29 Oct

‘A buyer’s market’: The sub-million dollar detached house returns to Vancouver

General

Posted by: Angela Calla

It wasn’t all that long ago that the prospect of buying a detached home in the City of Vancouver for under $1 million seemed like a dream from another era.

The so-called “million dollar line” that used to divide Vancouver’s east and west side has now crept well into the suburbs, and back in January there was just one such property in the city listed and sold for under the $1 million bar.

Read the full article here : ‘A buyer’s market’

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 and insures.

26 Oct

How to leverage your mortgage when ‘life happens’

General

Posted by: Angela Calla

Owning a home remains a priority for many Canadians – yet changes in the interest rate environment and high housing prices in certain markets may prompt a number of questions. How can prospective homebuyers be prepared for changes down the road? How can people in high-rent markets, such as Vancouver, for example, make sure they choose a mortgage they can afford?

Mortgage professional Angela Calla, host of “The Mortgage Show” on CKNW Radio, believes it is important to get “the right advice,” she says. “A mortgage decision has to be reflective of a person’s situation in life as well as the market – and working with a mortgage broker who has access to a range of products and understands the process can help to be prepared for potential challenges.”

Read more: Here

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

24 Oct

Bank of Canada Raises Rates

General

Posted by: Angela Calla

Bank of Canada Raises Overnight Rate Target

As expected the Bank of Canada raised its overnight rate .25%, banks are expected to follow.

View the full report here: https://www.bankofcanada.ca/press /

Key Takeaways

  1. Canada continues to attract business investment, LNG deal being finalized placed confidence in growth of the economy.
  2. Despite Tariffs Canadian exports are strong, and now that trade agreement is done the bond market has responded with confidence moving forward.

More gradual increases are expected to come –

The next scheduled date for announcing the overnight rate target is Wednesday December 5, 2018. To learn more about what to do if you have a variable or fixed rate see our October Mortgage Update here http://angelacalla.ca/blog

Any questions?  We are here to help. John, Julie and Dave are standing by at 604-939-8777 or callateam@dominionlending.ca

 

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 and insures. Most recently a best selling author of The Mortgage Code available on Amazon.

 

16 Oct

October Mortgage Update – Rates On The Rise Both Variable & Fixed

General

Posted by: Angela Calla

With the Bank of Canada holding rates steady this September, the same is not the case for the bond market, which impacts fixed rates. In every interest-rate market there are many factors leading to an increase and we are hoping to provide a little bit of clarity on what is happening and what it means to you and your loved ones. We tell you this in advance to be proactive to take care of you, as our mortgage family, so as you hear the news about the changes you have comfort we are here to lead with clarity.

At this time, we see fixed rates increasing as the bond market increases, and our economists anticipate an increase October 24th  2018 from Bank of Canada for variable rates as well. This is largely due to the trade deal now being completed and the LNG deal approved.

Why do we note this information and how does it relate to you?

If you are in a variable rate, you will want to: 

  1. Review your lock-in options by contacting us or your lender directly (every lender has different policies in allowing us to help or not). Knowing it’s unlikely the prime rate will reduce and fixed rates are on the rise, there could be a sweet spot to review your options now.
  2. If you decide not to lock in, it’s time to review your discount to see if a higher one can be obtained elsewhere.

Locking in won’t be for everyone, especially if you are making higher payments and your mortgage is below $300,000, which most people fit and will continue on that path. Also if your discount is above .6 below prime you may want to wait and watch the market. Locking in will be around 1% higher rate than you are likely presently paying.  If knowing you can likely lock in around 4% now is most attractive to you, this may be your time.

If you are in a fixed rate:

  1. If you obtained your mortgage in the last year, stay put.
  2. If you are looking to move up the property ladder or consolidate debt, get your application in to us ASAP so we can hold options for up to 120 days.
  3. If you are up for renewal this year or know someone who is, secure your options now with us to weight out the savings prior to renewal with us keeping a watchful eye on the market.

Keep in mind that if you or someone you care about has an average mortgage of $350k and got it a few years ago at 2.49% now a qualified applicant can expect about 3.89% which is a payment increase of $254 dollars a month, so increasing your payment now will protect your equity, and you from future payment shock.

Please reach out to us so we can help ensure you or a loved is on the right path in our ever changing market. 604-802-3983 or callateam@dominionlending.ca

Here to help, Angela Calla

Angela Calla leads The Angela Calla Mortgage Team with Dominion Lending Centres, and is an award winning #1 best seller of The Mortgage Code.

Buy it now!   The Mortgage Code