CMHC makes more changes-impacting self employed

General Angela Calla 29 Jul

The biggest impact that we note from this change is the newly self employed. Many tradespeople or service providers have decided to contract themselves out to companies or clients directly, making them self employed. CMHC was the most understanding to this type of borrower and would consider there previous earning history. Now a 2 year average of their net income will only be considered. You will want to be mindful of your deductions if you need to apply for a mortgage during that time period of transition.
The Angela Calla Mortgage Team is here to help you and those you care most about to ensure they are always getting the best mortgage contact us today at 604-802-3983 callateam@dominionlending,ca
Tue, 22 Jul 2014 14:00:00 GMT | By Gordon Powers, MSN Money

CMHC again tightens mortgage insurance rules

Changes to the rules for government-insured mortgages mean some Canadians will have to look farther afield when it comes to financing a home.




The Canadian Mortgage and Housing Corporation (CMHC) has once again moved to crimp the residential mortgage market, introducing changes that will soon make it more difficult for many Canadians to obtain government-insured mortgages.

The changes came following the federal government’s decision to tighten the Crown corporation’s mandate as it attempts to increase market discipline in residential lending.

“CMHC helps Canadians meet their housing needs and contributes to the stability of the housing market and finance system,” says Steven Mennill, senior vice-president, insurance, CMHC. “The changes announced as part of the review ensure that CMHC’s products and services are aligned with these objectives.”

CMHC will no longer insure mortgages for self-employed Canadians unless their income is formally validated by a third party. More importantly, it’s not going to provide insurance for existing homeowners looking to purchase a second property.

At the same time, the agency is discontinuing its mortgage loan insurance for the financing of multi-unit condominium construction. This insurance made banks more likely to lend money to condo developers, a part of the market that risks oversaturation.

The good news is that its insurance for mortgage loans to homebuyers wishing to purchase a condominium is unaffected by this change.

As it stands now, homebuyers in Canada are legally required to purchase mortgage insurance if they don’t put down 20 per cent of the price of the home up front. CMHC will now limit its exposure to such loans, however.

It will no longer offer mortgage insurance for homes that cost $1 million or more; limit the maximum amortization period to 25 years; and cap the Gross Debt Service (GDS) ratio to 39 per cent and Total Debt Service (TDS) ratio to 44 per cent.

This latest change marks the fifth time the government — in an effort to dampen what it believes to be excessive speculation in the housing market — has tightened mortgage rules over the past few years. And it’s probably not the last.

CMHC says it doesn’t expect the new rules to have a big impact, estimating that the latest changes would affect only a small portion of the properties it insures. But the actual impact really depends on who you ask.

Instead of forking over even more cash for education costs, for instance, some enterprising parents prefer to buy a nearby property for their children to live in during their university years.

That way, they’ll build up a bit of equity and the kids won’t need to look for a different place to live each year, have to worry about subletting, or figure out how to store furniture over the summer break.

But, for many families, that’s going to be much more difficult now since this would count as a second property.

The same goes for those looking to purchase recreational properties such as cottages or a ‘pied-à-terre’ for those who regularly travel to another city for work. If their existing mortgage is insured, they may have to look elsewhere.

As well, parents who have a mortgage that’s insured will no longer be able to act as co-borrowers for their adult children on insured mortgages.

The changes may also affect those transitioning to other properties and even impact the overall rental market, at least in urban areas.

In the past, someone who owned a condo with an insured mortgage might have opted to rent it out when they bought a house. Trouble is, if they hang on to the condo, they’ll no longer be able to buy that house — at least not with a mortgage that’s insured by CMHC.

These changes mean many Canadians will have to look farther afield when it come to financing.

That means tapping prime lenders who insure through private insurers, mortgage investment corporations that finance with even higher rates and fees, and private lenders who offer second mortgages, predicted.

Worries for Woman Seniors

General Angela Calla 25 Jul

Guess what women seniors worry about most?

TORONTO, July 22, 2014 /CNW/ – Although retirement is meant to be a time to enjoy friends and family it’s finances that typically derail what can be a special time – especially for women seniors.

The Angela Calla Mortgage Team can help you with the information to evaluate if a reverse mortgage is right for you, contact us directly at 604-802-3983 or



Top 10 neighbourhoods heating up in BC

General Angela Calla 11 Jul

Surrey tops a list of B.C.’s best cities for real estate investment for the fourth year in a row, but two new cities cracked the top 10 because of better commutes. Surrey’s No. 1 spot on the Real Estate Investment Network (REIN) list was no shock with the city’s continued population explosion

Pitt Meadows & MapleRidge are right behind it at #2!

See the full list & Article here

Contact The Angela Calla Mortgage team directly for the best #mortgage options 604-802-3983

New Normal For The Mortgage Market

General Angela Calla 11 Jul

First-time homebuyers continue   to enter the Canadian housing market in substantial numbers, encouraged by   low interest rates and acting in response to their own favourable economic   circumstances, according to the Canadian Association of Accredited Mortgage   Professionals (CAAMP), in its newest consumer survey report, Looking for a “New   Normal” in the Residential Mortgage Market.

The report, which examines Canadians’ attitudes about their   home purchase decisions, found that homeowners appear to be “happy with the   decision to buy their home.” They say they feel confident they can weather a   downturn in the housing market and they consider mortgage debt to be “good   debt”.

Their attitudes are the same whether they live in Toronto,   Calgary or Vancouver where prices continue to rise, or in areas where home   prices are stabilizing.

Following are some highlights of the findings:


  • There were approximately 650,000 homes purchased over        the last year and, among those purchases, 55% were first-time buyers

  • More than 80% of homeowners in Canada have 25% or        more equity in their homes

  • Average mortgage interest rate for all homeowners is        3.24% (down from 3.52% the previous year), and 3.02% for mortgages        renewed within the last year

  • Only 4% of mortgages have rates of 5% or higher

  • 87% of all mortgages have amortizations of 25 years        or less. For homes purchased in the last year, 92% have a 25-year        amortization or less

  • In the last year, 74% of new mortgages were        fixed-rate mortgages – down from 84% in the previous survey a year ago

  • The percentage of new mortgagors with variable rates        was 20% – up from 13% in the previous survey

  • Combination mortgages were at 6% – up from 3% in the        previous survey

  • 39% of all new mortgages were obtained through a        mortgage broker – up from 31% in the previous survey



  • In the past year 11% of homeowners took out equity        from their home with the average amount being $51,000 – up from $48,000        in the previous survey

  • The #1 use for equity take out was debt        consolidation, followed by renovations in second spot and investment        purposes at #3

  • Last year, 35% of mortgage holders took steps to        accelerate repayment, including increasing their payment frequency,        making lump sum payments or increasing their regular mortgage payments

  • Consumer sentiment: percentage who expect a housing        bubble will burst (among all age groups) is just 9%

“From the consumer perspective we have a picture of a very   confident, healthy mortgage market,” said Jim Murphy, AMP, President and CEO   of CAAMP. “Key to the current stability in the mortgage market is the fact   that Canadians continue to pay down their mortgage debt faster than they’re   required and they continue to take out five-year, fixed-rate mortgages.   Canadians who renew their mortgages are seeing their interest costs reduced,   which is boosting their personal financial circumstances, and this will   continue to be a positive force during the coming year.”

Low interest rates stimulate   home purchase, mortgage debt reduction, optimism
  Canadians are reducing their mortgages by negotiating lower interest rates,   making lump sum prepayments and repaying their mortgages at, on average,   two-thirds of their contracted amortization periods. This has created an   attractive landscape for new homeowners, as historically low interest rates   have attracted increasing numbers of first-time buyers.

In the survey, Canadians express a strong belief that “real   estate in Canada is a good long-term investment” and agree that mortgages are   a form of “good debt.” Canadians still feel optimistic about the economy in   the coming 12 months, and say they have no regrets taking on the size of   mortgage they did.

As always, if you have questions about this report, or other   mortgage-related questions, I’m here to help!

Angela Calla Mortgage Team 604-802-3983 or



10 things to see if being a landlord is for you

General Angela Calla 11 Jul


Many people consider investing in real estate as a way to build a nest egg and have tenants help you pay the mortgage. There are many things to consider, however, before embarking on the investment property journey. Click here for 10 things to know from The Star.

The Angela Calla Mortgage Team is here to help you with the best mortgage plan to help you. Contact us directly to help youi with any #mortgage at 604-802-3983 or