Buyers market appears to be here to stay next year

General Angela Calla 26 Oct

The deteriorating global picture is turning what had been a soft patch for Canada’s export-heavy economy into more than a year of sluggish growth, the Bank of Canada said today in a new quarterly forecast.

 A day after leaving their benchmark interest rate at 1% for a ninth consecutive meeting, Bank of Canada Governor Mark Carney and his officials fleshed out why they believe the economy will perform below its potential until 2013, and why they’re unfazed by hotter-than-expected inflation in recent months.

 Plus, although the central bank sees things improving within two years, policymakers again stressed that a failure to contain the European debt crisis could mean an even bleaker few months ahead.

 “The economic outlook in Canada has weakened, reflecting the substantially downgraded outlook for the global economy,” Carney and his policy team said today in their Monetary Policy Report.

 Click here to read more in the Globe and Mail

Tune into the Mortgage Show with AMP of the year in 2009 Angela Calla Saturdays @ 7pm on CKNW to learn how you can benifit from this information or call 604-802-3983

The most agonizing decisions homeowners make: Do you go fixed or variable?

General Angela Calla 26 Oct

Mortgage, that is. The decision could end up costing – or saving – big bucks on what is often the single biggest purchase many will make. Research shows that, in the past, a variable-rate mortgage has been cheaper than a fixed-rate one. But today’s market is different from decades past in two big ways. “The spread between fixed and variable rates is extremely low by historical standards. Moreover, we can no longer rely on a long-term down-trend in rates. “Given all that, the historical advantage of variable is less applicable today.” It can be confusing for homeowners. Both interest and short-term mortgage rates are sitting at rock-bottom lows. But inflation is the wild card here. Statistics Canada reported on Friday that the core inflation rate has climbed to 2.2% – its highest level in nearly three years.

Click here for the full Globe and Mail article.

Inflation may not be the gauge with rite hikes moving forward

General Angela Calla 25 Oct

Finance Minister Jim Flaherty confirmed he is working on a more explicit inflation mandate for Canada’s central bank, a move that comes as Canadians are increasingly paying more for everyday needs.

Speaking with reporters after Statistics Canada reported on Friday that the core inflation rate has climbed to 2.2 per cent – its highest level in nearly three years – Mr. Flaherty responded to the news by saying he’s more concerned about growth and jobs.

Read More

Call the Angela Calla Mortgage Team 604-802-3983 to see how we can help you with your mortgage or tune into The Mortgage Show Saturdays @ 7pm on CKNW

Prime holds steady

General Angela Calla 25 Oct


As expected there is no change to prime rate this morning. This means no change to those whom carry an adjustable/variable rate mortgage or line of credit. The full report can be viewed here

Reported last week at , if you or someone you care about is getting a new mortgage in the near future with the change in the spreads for variable rate mortgage; the consideration of a fixed rate may be suggestible with the closing of the gap the lenders have done over the last few weeks.

If someone that you care about could benifit from a review if their mortgage as their mortgage rate is over 4% or they are carring over $250 a month in outside debts, please introduce us over an email at or call 604-802-3983

Have a great week

Angela Calla, AMP Mortgage Expert

Dominion Lending Centres-Angela Calla Mortgage Team

Fixed Mortgage Rate Time by Angela Calla

General Angela Calla 17 Oct

October 17th 2011- for immediate release

Has the pendulum ever swung over the last year in terms of fixed or variable-rate mortgages!

Reports show us that 88% of the time you will get ahead with a variable rate. And besides the always predictable pay out penalty with the variable rate mortgage that people enjoy compared to the ugly interest rate differential (IRD) payout penalty that can come with a fixed, the spread and cost of security are making more attractive regardless of the ugly trait.

This may be the 12% of the time where going fixed will be the new trend – until rates start to rise.

Here’s why using a 300k mortgage example using rates from the beginning of


-Variable-rate mortgage at 2.2% is $1138 month -Fixed at 3.89% is $1405 a month -Cost of security is $270 a month

 As variable-rate mortgages are less profitable for lenders while cost effective for Canadians, the gap has been reduced knowing that rates are expected to remain low over the next while.

Today’s example:

-Variable-rate mortgage at 3% for $1262 a month -Fixed at 3.29% for $1309 a month -Cost of security is $47 a month

 This change in fixed versus variable rates is a difference of $223 a month in the cost of security. So for many Canadians, fixed represents a much more comfortable solution.

For first-time homebuyers, one of the most popular choices is a fixed rate as it also helps them qualify for more house. With a variable rate, they must qualify at the Bank of Canada qualifying rate, in most cases, allowing them to purchase on average 30% less house.

Think a fixed rate will protect you from rate change? Guess again! If you don’t manage your mortgage with inflation via an ongoing strategy, when mortgage rates return to normal levels you can have payment shock – even after paying your mortgage for five years of up to $300 a month in the above example.

Bottom line, if you can get a variable rate at Prime Minus 25 or below, it should be a primary consideration. When the spreads get this close, however, a fixed should be your first consideration.

But keep in mind that each option needs to be managed properly so you’re optimizing your mortgage product. Timely information is the key to your success, whether you choose fixed or variable.

Angela Calla is a licensed Mortgage Broker with Dominion Lending Centres, AMP of the Year in 2009, one of Canada’s top mortgage experts and Host of The Mortgage Show on CKNW AM 980 Saturdays at 7pm based in Vancouver, BC.

She can be reached at: 604-802-3983;;


Angela Calla, AMP

Mortgage Expert

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

Phone: 604-802-3983

Fax: 604-939-8795

Facebook: Angela Calla Team, AMP Your Mortgage Expert Toll Free: 1-888-806-8080


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Housing Market continues to be strong

General Angela Calla 12 Oct

The Canadian housing market continues to defy the odds in the face of a world economic slowdown, as new statistics from CMHC show new home construction soaring again.

The latest numbers put September starts at 205,900 on an annualized basis, a pace in line with the best period of this housing boom when starts checked in at over 200,000 each year from 2002-2008. This time out it appears the condo sector is driving the market – a trend seen across the country.

 That construction is expected to be a key economic driver. Royal Bank is forecasting 2.4% growth in Gross Domestic Product in the third quarter on an annualized basis with the housing sector responsible for 50 basis points of that growth.

 Bank of Montreal economist Doug Porter noted this week there are now 4.3 construction jobs in the US for every one in Canada – way off the historical norm of seven to one. He said in a note “it’s tough to believe” Canada can continue at its present pace.

 Click here for the full Financial Post article.

To learn more about your options with the current market call The Angela Calla Mortgage Team at 604-802-3983 tune into The Mortgage Show Saturdays @7pm on CKNW AM980

Tax savings on your mortgage, thank you Fraser Smith

General Angela Calla 12 Oct

While the creator of the eponymous Smith Manoeuvre, Fraser Smith, is sadly no longer with us, the tax-savings movement he spawned is very much alive and well in Canada.

Born in 1938, Smith died of cancer on September 25th at age 73.

His “manoeuvre” was and is a way for Canadians to achieve what American homeowners enjoy as a matter of course: writing off interest on their mortgages. In Canada, you can’t directly deduct mortgage interest cost on a principal residence from your taxes.

Smith developed a perfectly legal end run that let homeowners convert the bad debt of non-deductible mortgage interest into the good debt of tax-deductible investment loans. The manoeuvre combined the traditional step of paying down mortgage principal with re-borrowing monthly principal payments for the purpose of investing in stocks or other securities. Interest on the latter can be written off for tax purposes.

 Click here to read more from the Financial Post

To learn more about mortgages for tax efficency call The Angela Calla Mortgage Team 604-802-3983 tune into The Mortgage Show Saturdays @ 7pm on CKNW AM980


Before you buy a home

General Angela Calla 4 Oct


Preparing for a mortgage will increase your chances for approval. Don’t buy or lease big-ticket items or increase debt for 6-12 months prior. Purchasing things such a new car, furniture or major appliances worsens debt-to-income ratios, which can make you ineligible for the best available loan terms.

Contact the Angela Calla Mortgage Team for your mortgage pre approval 604-802-3983


Quick tips for boosting your credit

General Angela Calla 4 Oct

Planning ahead to ensure your credit is healthy before applying for a mortgage can translate into a better mortgage rate and product – which can save you significant money throughout the term of your mortgage.

Following are five steps you can use to help attain a speedy credit score boost:

1) Pay down credit cards. The number one way to increase your credit score is to pay down your credit cards. Revolving credit like credit cards seems to have a more significant impact on credit scores than car loans, lines of credit, and so on.

2) Limit the use of credit cards. Racking up a large amount and then paying it off in monthly instalments can hurt your credit score. If there is a balance at the end of the month, this affects your score – credit formulas don’t take into account the fact that you may have paid the balance off the next month.

3) Check credit limits. If your lender is slower at reporting monthly transactions, this can have a significant impact on how other lenders may view your file. Ensure everything’s up to date as old bills that have been paid can come back to haunt you. Your best bet is to pay your balances down or off before your statement periods close.


4) Keep old cards. Older credit is better credit. If you stop using older credit cards, the issuers may stop updating your accounts. As such, the cards can lose their weight in the credit formula and, therefore, may not be as valuable – even though you have had the cards for a long time. You should use these cards periodically and then pay them off.

5) Don’t let mistakes build up. You should always dispute any mistakes or situations that may harm your score. If, for instance, a cell phone bill is incorrect and the company will not amend it, you can dispute this by making the credit bureau aware of the situation.

If you have repeatedly missed payments on your credit cards, you may not be in a situation where refinancing or quickly boosting your credit score will be possible. Depending on the severity of your situation – and the reasons behind the delinquencies, including job loss, divorce, illness, and so on – I can help you address the concerns through a variety of means and even refer you to other professionals to help get your credit situation in check.

As always, if you have any questions about you credit situation or your mortgage in general, I’m here to help!

Angela Calla Mortgage Team 604-802-3983