General Angela Calla 16 Dec
When asking this question to one of our clients (a new resident to Canada from China) they stated the following:
Angela Calla, AMP
Mortgage Expert
Host of “The Mortgage Show” on CKNW AM980 Saturdays at 7pm
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Phone: 604-802-3983 |
General Angela Calla 14 Dec
10 Questions Mortgage Borrowers
Should Ask But Often Don’t
1. If I have mortgage default insurance do I also need mortgage life insurance?
2. What steps can I take to maximize my mortgage payments and own my home sooner?
3. Can I make lump-sum or other prepayments on my mortgage, or will I be penalized?
4. How do I ensure my credit score enables me to qualify for the best possible rate?
5. What amortization will work best for me?
6. What mortgage term is best for me?
7. Is my mortgage portable?
8. If I want to move before my mortgage term is up, what are my options?
9. What steps can I take to help ensure I don’t become a victim of title or mortgage fraud?
10. How do I ensure I get the best mortgage product and rate upon renewal at the end of my term?
Angela Calla, AMP of Dominion Lending Centres is one of Canada’s Top Mortgage Experts and Host of The Mortgage Show Saturdays @7pm on CKNW and Mortgage Cents on TheFox 99.3FM she can be reached at acalla@dominionlending.ca 604-802-3983 www.angelacalla.ca
General Angela Calla 13 Dec
Make use of extra ‘gravy’ at Christmas
Garry Marr Dec 10, 2011 – 7:00 AM ET | Last Updated: Dec 12, 2011 1:18 PM ET
Christmas comes twice a year for some Canadians — or so they think.
The three-paycheque month is viewed across this country as some type of well-earned bonus that comes through the sleight of hand of being paid every two weeks as opposed to twice a month.
Instead of 24 paycheques a year, you get 26. When you get that “lucky” month depends on when your two-week pay period is calculated. For whatever reason, perhaps because people budget on a monthly basis, those two extra paycheques are considered gravy by many workers.
“Most people budget [monthly]. We do know people have their monthly mortgage payments and certainly households [expenses] are probably monthly but their paycheque is coming on a biweekly basis,” says Sandra Sutton, director of product strategy at Winnipeg-based Ceridian Canada Ltd.
Ceridian, which handles payroll for companies, says about 59% of Canadians get paid on a biweekly basis, opening up the possibility of the three-paycheque month. The good news is Ceridian also says 89% of people go for direct deposit — something that probably goes a long way to eliminating that feeling of money burning a whole in your pocket.
Ceridian can’t tell you specifically if people save more with direct deposit but the option does allow employees to split up their money into different accounts, pocketing some directly into a savings account or some other type of savings vehicle like an RRSP or TFSA.
Ms. Sutton says she herself gets paid semi-monthly but she once worked for an organization where people were paid biweekly and people did feel they had extra money.
“It was true. You had this extra chunk of money. You had already allocated for your regular two paycheques towards your mortgage and other bills. So, bonus?” she says.
Tom Hamza, president of the Investor Education Fund, says if you’re thinking you’ve got some sort of free month, then it likely means you are not doing a good job of co-ordinating your income with your bills.
“All of your payments should be co-ordinated,” says Mr. Hamza, well aware of the concept because he himself is paid every two weeks. “I’m a complete nerd. I think I’m the anomaly. We budget monthly based on paycheques. We put money aside. It makes sense that people think it’s free though.”
The problem is that’s a major mistake, and at the end of the day that third paycheque should probably be thought of more as opportunity.
“The other time people think money is free is RRSP time when they get their taxes [or refund] back from the government,” Mr. Hamza says.
“If you are complaining about not having enough money, use these opportunities to liberate what is yours. These are the times you should be dealing with your debt, if you are like many Canadians.”
Vancouver-based certified financial planner Anthony Windeyer, of Coast Capital, says there are a couple of ways of thinking when it comes to the so-called extra money.
“If you are an excellent saver and doing all the right things, I would suggest they could treat it like free money,” Mr. Windeyer says. “However, if you are having budget challenges and you know that’s the case, I would treat it as the ideal opportunity to get ahead of the curve and pay down some more debt.”
When you think about all the unpaid credit-card balances, leftover RRSP room, unopened registered education savings plans and underfunded tax-free savings accounts, there are plenty of places to put those extra paycheques.
In some ways, that extra paycheque is almost a bit of forced savings. It’s yours. Do what you want with it, but why not make it go a lot further by investing it?
Of course, it is December. So if this is your three-paycheque month, Merry Christmas
Angela Calla, AMP Dominion Lending Centres 604-802-3983
General Angela Calla 8 Dec
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If you’ve been thinking about buying a new home but don’t think that the cooler months make for an ideal time, you may actually benefit from changing your perspective. Though spring and summer are typically the most active real estate buying and selling seasons, house hunting in winter has its own benefits. Knowing what they are and how to use them to your advantage can put you on the path to homeownership sooner rather than later. One of the best reasons to buy a house in winter is that there is less competition out there. Because many people believe that buying a home in cooler months is a bad idea, they stay home waiting for spring to come instead of house hunting. After all, moving at this time can be inconvenient and messy if you have to deal with inclement weather. Additionally, families will be less likely to move in the months of September through June if their children are in school. It’s the perfect time to start looking for a home during months when there are fewer house hunters. With fewer buyers in the market, homes move more slowly and sellers are more willing to negotiate on their asking price. They often need to move from the property in the near future, and you can use that to your advantage to get a favourable deal on a house that may otherwise be out of your price range during the peak selling seasons. |
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Lenders also usually have fewer loans to process and less paperwork to deal with in the off-season. With lenders less hassled, you can expect a smoother mortgage approval process. Touring a home during the winter allows you to see things that you may not have been exposed to if you had come in the summer months. For instance, drafts may be a sign that windows need replacing or that there are air leaks that may need to be sealed. If the house feels warm without the thermostat being set too high, it may be an indication that the home has good insulation. If you decide to brave the cold and hunt for a home during winter, there are a few things you should keep in mind. First, don’t feel like you’re going to inconvenience someone by viewing their home during the holidays, evenings or weekends. Sellers want to sell just as much as buyers want to buy. Also, don’t be overcome by holiday decorations, which can make a house look cramped or have the opposite effect of making the house more emotionally appealing than it otherwise would be. Just like any holiday shopping sale, knowledgeable shoppers know where to find great opportunities. The same holds true for real estate. There are still homes for sale in winter and bargains to be found, so don’t let the seasons rule your search for a home. Regardless of when you decide to buy or sell, answers to your questions are just a phone call or e-mail away! |
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Angela Calla, AMP 604-802-3983 acalla@dominionlending.ca |
General Angela Calla 6 Dec
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Dominion Lending Centres Angela Calla Mortgage Team is proud to announce the launch of EnRICHed Academy’s “Smart Start for Financial Genius”! This program has been designed to educate young adults (13-23) and their families on the fundamentals that build wealth in an entertaining, funny and entirely interactive way. No program like this currently exists, and the need and demand across North America is at an all-time high. This is our way of giving back to communities across Canada, ensuring our youth embrace financial literacy. Click here to view the EnRICHed Academy trailer on YouTube. Why we created EnRICHed
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What EnRICHed looks like The program comes in a box and contains 5 DVDs of entertaining but highly educational video on creating a foundation for building wealth. There is a 100-page workbook that the family will work through that includes activities and exercises as well as other materials that correspond with the topics covered in the program. 15 key topics covered by EnRICHed
Feel free to give me a call or send me an email if you’d like to learn more about EnRICHed Academy. Angela Calla, AMP 604-802-3983 |
General Angela Calla 6 Dec
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With mortgage rates still hovering near historic lows, chances are you’ve considered breaking your current mortgage and renewing now before rates rise any further. Perhaps you want to free up cash for such things as renovations, travel or putting towards your children’s education? Or maybe you want to pay down debt or pay your mortgage off faster? If you’ve thought about breaking your mortgage and taking advantage of these historically low rates, feel free to give me a call to discuss your options. In some cases, the penalty can be quite substantial if you aren’t very far into your mortgage term, but we can determine if breaking your mortgage now will benefit you long term. People often assume the penalty for breaking a mortgage amounts to three months’ interest payments so, when they crunch the numbers, it doesn’t seem so bad. In most cases, however, the penalty is the greater of three months’ interest or the interest rate differential (IRD). |
The IRD is the difference between the interest rate on your mortgage contract and today’s rate, which is the rate at which the lender can relend the money. And with rates so low these days, the IRD tends to be greater than three months’ interest. Because this is a way for banks to recuperate any losses, for some people, breaking and renegotiating at a lower rate without careful planning can mean they come out no further ahead. Keep in mind, however, that penalties vary from lender to lender and there are different penalties for different types of mortgages. In addition, the size of your down payment and whether you opted for a “cash back” mortgage can influence penalties. While breaking a mortgage and paying penalties based on the IRD can result in a break-even proposition in the short term, if you look at the big picture, you’ll see that the true savings are long term – as we know that rates will be higher in the years to come. Your current goal is to secure a long-term rate commitment before it’s too late, and here lies the significant future savings. As always, if you have questions about breaking your mortgage to secure a lower rate, or general mortgage questions, I’m here to help! Angela Calla, AMP 604-802-3983 acalla@dominionlending.ca |
General Angela Calla 6 Dec
Good Morning,
No surprises this morning, the BOC rate remains stable the full report can be viewed here http://www.bankofcanada.ca/2011/12/press-releases/fad-press-release-2011-12-06/
Angela Calla, AMP
Dominion Lending Centres 604-802-3983
General Angela Calla 5 Dec
By Courtney Tower
–External Headwinds ‘Blowing Harder’ So Stimulus Still Needed
–Some Few Analysts See Rate Cut Rather Than Hikes In Future
OTTAWA (MNI) – The Bank of Canada likely will maintain the economic stimulus of its 1.0% policy interest rate on Tuesday, for the 11th successive rate-setting time, and those who parse its words will be looking only for any change of tone.
Governor Mark Carney at the Bank has made clear in statements and in the most recent (October) Monetary Policy Report that there will be no change for the foreseeable future. He does, though, continue to insist that the Bank will remain “flexible,” in the light of world and domestic future developments. He speaks most particularly of the never-ending European debt and banking weakness.
There is near-unanimity among analysts that the Bank will stand pat with the 1.0% rate that it moved to on September 8, 2010, from 0.75% in July last year. Some see that rate continuing through the third quarter of 2012, and some see it continuing deeply into 2013. But with headwinds “blowing harder,” as Carney has put it, from Europe and the United States and some slowing of growth in Asia, there are a few who see the Bank lowering rates rather than hiking them in the future.
Michael Gregory, senior economist at BMO Capital Markets, is not one of them. He sees inflation as posing no concern, that high consumer debt and high house prices argue for increases over rate reductions, and that the Bank believes there already is “considerable monetary policy stimulus” from the “historically low” 1.0% rate.
Gregory does note, though, that the Bank, having joined with the Federal Reserve and other key central banks in expanding global banks’ access to U.S. dollars, clearly sees “some risk of the headwinds blowing even harder.” He adds, in a research note to clients:
“The market sees this too, currently pricing in a 25-basis points BoC rate cut by next June.”
Most analysts believe the Bank will take the longer-term attitude, with Dr. Sherry Cooper, chief economist for BMO Financial Group, that the international central banks’ reduction of the cost of dollar swaps better enables European banks to borrow, but is no long-term solution. “It does not address the underlying fundamental problems,” she wrote on December 2. “The solvency issues, the recapitalization of the banks, and the imbalances in the eurozone, have yet to be dealt with — not to mention the politics of greater fiscal integration.”
At TD Economics, macro strategist Mazen Issa writes that, short of European collapse, the BoC would prefer “to remain on the sidelines” at 1.0%. He expects the Bank to say that the previously noted risks to the Canadian economy, of Europe and of weak demand from the U.S. and some slowing down in China, have all materialized. He believes the BoC will say again, as it has, that “the current stance of monetary policy is appropriate and (that the Bank) stands ready to provide liquidity if needed” because of worsening funding market pressures.
Canada’s own economic indicators have been mixed. Jobs growth is slowing, although full-time work is increasing from the huge pullback in September. Exports have picked up. The current account deficit has narrowed, but still is a deficit. Statistics Canada recently reported third-quarter growth of the economy at an annualized and booming 3.5%, far above earlier Bank expectations of 2.0% growth for Q3 — but much of that growth represents a rebound from serious temporary factors that gave Canada a very low Q2. The Bank forecasts slow growth for Canada in 2012.
Ten of 11 senior economists from business and universities in Canada, grouped together by the C. D. Howe Institute, a leading economic think tank, have called for the Bank of Canada to stand pat on Tuesday. Nine of the 11 would have the BoC continue with 1.0% at the following setting, January 17. For six months hence, two would cut the rate and one would raise it. In a year’s time, six would still have the 1.0% rate while three would have raised it by then and two would have reduced it.
The main and shared outlook was that “Europe’s slide into recession, the likely intensification of its financial crisis, and the huge potential hit to global growth, inclined the group to urge no change.”
** Market News International Ottawa **
To learn how to use the low interest rate market to your mortgages advantage call the Angela Calla Mortgage Team 604-802-3983