Housing decline does not mean housing crash is about to be realized

General Angela Calla 19 Sep

Courtesy of Financial Post September 19th 2012

“What we see now is probably, at worst, a soft landing,” Rick Waugh told reporters after an address to business leaders in Toronto.

Senior executives at the country’s third-biggest bank by assets have looked at ongoing evidence of a slowdown in some cities and they’re not surprised by what they are seeing, Mr. Waugh said.

The numbers are “well within our expectations,” he said.

Unlike the U.S. and Europe that are dealing with the fallout of severe real estate downturns, Canada is protected by the strength of the domestic economy and the banking system, which mostly avoided fallout from the financial crisis, Mr. Waugh said.

Read full article here http://business.financialpost.com/2012/09/18/housing-correction-underway-in-canada-soft-landing-likely-bankers/

To learn your options in the housing market contact

Angela Calla Mortgage Team 604-802-3983 callateam@dominionlending,ca

Deal of the week on @cknw #mortgageshow #burnaby

General Angela Calla 7 Sep

As heard on this weeks Mortgage Show on CKNW with Angela Calla Saturday September 8th 2012. To get pre approved for this property or any other purchase email us at callateam@dominionlending.ca or call 604-802-3983

This weeks deal of the week has been brought to you by:

Robert Boies
Royal LePage Coronation West
cell: 604 341 3009 t: willingtwo
E-mail: robboies@royallepage.ca


Please note that properties like this move quickly and getting set up with Rob Boies directly robboies@royallepage.ca will keep you abreast of all of these types of oppertunities meeting your speciafications

Thanks for visiting

Angela Calla, AMP


Changes to HELOC’s and No Down Payment Mortgages

General Angela Calla 7 Sep

Sept 5th 2012 

Good Morning,

For the 16th time the BOC has made no change to it’s prime rate. This means there will be no change to your line of credit or variable mortgage rate or payment if you have one. Full press release here: http://www.bankofcanada.ca/2012/09/press-releases/fad-press-release-2012-09-05/

That doesn’t mean we aren’t seeing changes elsewhere.  As I released some time ago, some lenders have cut their HELOC (Home Equity Lines Of Credit) down to 65% from the 80% already. Other lenders will follow shortly with little to no notice. Scotiabank today released they have said goodbye to the no down payment mortgage for home purchases as of Sept 15th 2012 of this year, and other lenders will also follow with little to no notice.

Read Changes to Lines of Credit here:http://www.angelacalla.ca/blog_post?id=7696&title=Changes-upcoming-to-secured-Lines-of-Credit

Read Scotiabanks says goodbye to no downpayment mortgages here: http://www.angelacalla.ca/blog_post?id=7883&title=Scotiabanks-says-goodbye-to-no-downpayment-mortgages

Knowing that mortgage options can change like the weather (regardless of rates staying put) it’s important not to wait to review your options. If you have a renewal, carrying debt outside of your mortgage, planning to buy a home or just curious if you are optimizing your mortgage to it’s best ability; contact us today to see how we can help you at callateam@dominionlending.ca or 604-802-3983

Angela Calla

Dominion Lending Centres-Angela Calla Mortgage Team

Host of The Mortgage Show Saturdays @ 7pm on CKNW AM980

604-802-3983 callateam@dominionlending.ca

t @angelacalla www.angelacalla.ca

Scotiabanks says goodbye to no downpayment mortgages

General Angela Calla 5 Sep

Banks to End Cashback Down Payments

Cash-back-mortgageCashback down payment mortgages are on the endangered list.

One of the biggest remaining lenders with a cashback down payment mortgage is Scotiabank, which announced today that it is terminating its “Free Down Payment” program, effective September 15.

A source at the bank confirms that it is scrapping the offer in light of banking regulator OSFI’s B-20 Underwriting Guidelines.

OSFI has decreed that “Cashback should not be considered part of the down payment.” Most Federally regulated lenders must therefore eliminate these offerings no later than October 31, 2012.

Cashback mortgages – essentially 100% financing – are a niche product that are seldom appropriate for owner-occupied purchases (sometimes they make sense for rentals). There are exceptions, but most of the folks who want them are simply a bit too eager to buy.

The Canadian Association of Accredited Mortgage Professionals (CAAMP) supports OSFI’s call to end cash back products in lieu of 5% down payments. “Borrowers should have ‘skin in the game’,” it says.

There aren’t many federally-regulated lenders with 5% cashback down payment mortgages left. Last time we checked, National Bank and B2B Bank were two of the banks still doing them. Those options likely won’t be around for long.

Despite the above, banks (including Scotiabank) will continue selling cashback mortgages so long as the funds aren’t being used as equity. Buyers sometimes use cash back for things like land transfer tax, lawyer’s fees, moving costs, closing costs, furnishings, landscaping, renovations, and so on.

Cashbacks are also used for refinances to 85% loan-to-value (the official refinance limit without cash back is 80% LTV on insured mortgages).

Sidebar: There’s a chance that a small number of provincially regulated lenders will continue offering cashback down payment mortgages. We’ll see who’s left standing after October 31.

Courtesy of Canadian Mortgage Trends

Want to know your options to purchase a home? Contact The Angela Calla Mortgage Team 604-802-3983 callateam@dominionlending.ca