In his morning address to the nation, Prime Minister Justin Trudeau on Wednesday announced expanded eligibility rules for the Canada Emergency Response Benefit and a plan to top up pay for some essential workers amid the novel coronavirus pandemic.

The CERB will become available to Canadians who have exhausted their employment insurance (EI) benefits since Jan. 1, seasonal workers who can’t find work because of COVID-19 and those who earn up to $1,000 a month, the prime minister said.

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Angela Calla is a 16 year award-winning woman of influence mortgage expert. Alongside 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 all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

A bit about rates and government programs for those who are interested in some of the plumbing behind the scenes. With the Bank of Canada (BoC) dropping the overnight rate multiple times, we have seen lenders’ prime rates drop. But not all at the same time. The reason is, for many lenders like MCAP, something called CDOR is much more important than the BoC overnight rate. These two measures should correlate. Not this time. CDOR actually went up at first! Our cost of funds went up. I attach a little graph below. The BoC BA purchase program and CP purchase program is starting to fix many things, including CDOR. Thank you to the BoC! (can’t wait for CORRA). MCAP Prime is now able to be 2.45%. For fixed rate mortgages, government of Canada bond yields have declined, but MBS (mortgage backed securities) and CMB (Canada Mortgage Bond) spreads have widened, a lot. CMHC’s $150 billion IMPP should help bring these spreads in over time. Thank you CMHC! This would allow lenders to charge lower fixed rates soon. The spread on CMHC’s next purchase will guide the whole market.

Sourced from the President & CEO of MCAP, Mark Aldridge.

Angela Calla is a 16 year award-winning woman of influence mortgage expert. Alongside 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 all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

Mortgage payments:

What are some common ways you can make mortgage payments? What do amortization periods mean for homeowners?

You can make payments monthly, accelerated biweekly, semi-monthly or weekly. It’s important to protect yourself for things out of your control. When we set up a mortgage for any client, we always set them up with the minimum monthly payment and the longest amortization for their situation. Then they can use their pre-payment privileges to increase the payments and pay off their mortgage in as little as 5 years! This is far better then handcuffing them to something which will cost them more down the road.

Then if something happens and they don’t have cash aside for an emergency they don’t have to get in debt with credit cards or lines of credit that will cost them more in the long run. If they started with a higher payment and short amortization if anything happens, they’re in a difficult spot.

A mortgage is a one-way street and it costs money to break it if needed.

What should first-time homeowners know about mortgage payments that could protect them as borrowers?

If you shop for a mortgage on your own, your credit can be negatively impacted. Lenders may flag your file if they think you are modifying your application and you won’t qualify for their new client specials that may be available at a later date. It’s best to always consult with a mortgage professional first to thoroughly understand your options.

Is there a “best choice” for the length of time you hold a mortgage?

If you are thinking of buying a home, you should see what you qualify for right away. If you are self employed, you should look into qualifying up to 2 years in advance so you can see what income you should have and evaluate any money you’ll need to take out of your company for a down payment. The sooner you know your options the sooner you’ll know if there’s something reporting incorrectly on your credit report or that you need to focus on paying off outside debt. This will ensure you are positioned in the best way possible when you do find a home. When you buy is up to you but positioning yourself best starts as soon as you have the thoughts of becoming a homeowner.

If you are getting a “real” pre-approval in place you should expect to submit an application, sign a credit consent agreement, letter of engagement, and supply income and down payment supporting documentation. Some people will have this on hand while some people may need to ask their Human Resources department or accountant and download the appropriate statements etc. Once it’s been submitted to your mortgage professional in its entirety it will generally take a full business day to review a straight-forward file.

Should homeowners try to pay off their mortgage early?

It’s all about balance and looking at everything going on. If they can afford it, we have a strategy that we implement called the inflation hedge – they make small increases throughout having the mortgage that will protect them from future payment shock but not leave them cash poor. It’s a well balanced approach. Each strategy is customized based on the profile of the borrower and personal capacity to protect equity, build wealth and avoid accumulating outside debt.

Angela Calla is a 16 year award-winning woman of influence mortgage expert. Alongside 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 all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

Mortgage approval:

What are the ways you can ensure pre-approval on a mortgage? How can you protect yourself while searching for a mortgage?

Beware of those “pre-approval in 60 seconds” apps. Those are only pre-qualifications meant for infotainment purposes. This is not an actual pre-approval in any way shape or form. There is a big difference.  The only way you can shop in confidence and protect yourself is with a “real” pre-approval.

In order to have a “real” pre-approval, your credit, income and down payment must be verified via the appropriate documentation (please note some documents have a shelf life of 30 days). The lender will then subject this to their approval of the property. Throughout the pre-approval period circumstances (job, debts, etc.) must stay the same. The Lender ALWAYS reserves the right to ask for additional documentation at any time.

How long does pre-approval last and should you seek pre-approval if you don’t have a home in mind?

A pre-approval can last up to 18 months for new construction or 120 days for an existing property. It’s important to note: the lenders that have the best rates don’t “hold rates” they only work on “live deals” there is a cost to hold money which is why only some lenders offer it.

How long does mortgage approval take?

Once an accepted offer is in place it’s best to have 5-7 business days to finalize your details. The lender will call your employer, review required strata documents relative to that property and may want to review an appraisal.

Anything a first-time homebuyer should know before they finalize their mortgage?

Just because you hold a rate with one lender, doesn’t mean that will be your final choice. Based on the property you choose and your closing dates, we may recommend a different lender once a contract is in place. It’s important to understand that strategy and process is circumstantial.

Utilizing a mortgage broker will protect your credit, give you the power of choice and unbiased advice.  The access a mortgage professional will give you is unparalleled.

Once you have an offer in place you may be able to qualify for a monoline lender; this will help protect your equity as their pre-payment penalties are the lowest. If you are like 7/10 Canadians that end up breaking their mortgage early because of divorce, a growing family, job transfer, no longer love your neighbours or strata, this will help you protect your equity.

A mortgage professional with a proactive strategy put in place will help you achieve your financial goals and use the constantly changing market to your advantage.

Shopping for a mortgage based on interest rates alone is the biggest mistake any potential mortgage holder can make. There are about 4 lines of rates available at all times based on your down payment, credit score, property type, amortization, occupancy, area of the property, utilized income, and closing date – the list goes on. Your mortgage professional will go over all the options that are applicable to you.

Angela Calla is a 16 year award-winning woman of influence mortgage expert. Alongside 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 all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

Whether you’ve been directly affected by the COVID-19 pandemic or are looking to take preventative measures to ensure your financial stability, here are some tips to help you understand Mortgage Deferrals.

What is a Mortgage Deferral?

A mortgage deferral, if approved, allows you to delay the payments for the time granted, and is done on a case by case basis. These vary greatly and is based solely on the decision of the lender.  We have seen approvals between one and six months, with extended delay times for approval.

Once the deferral is over your payment will increase to be higher and on top of your regular payments. The amount will be added to each payment remaining on the term. The longer the deferral the higher your payments will be after the deferral period.

Do you qualify?

As of this moment, only those who do not have the ability to work or make payments as a result of COVID-19 will qualify. If you are still employed at this time you will not qualify.  Everyone’s situation is unique. We recommend you contact your mortgage broker or lender directly.

What about rental properties?

Some lenders will now allow deferrals on up to 4 properties regardless of occupancy. To support renters who are facing a loss of income during the pandemic, a new supplement (TRS) will offer up to $500 a month to help renters pay part of their rent and help ensure landlords continue to receive at least some rental income right now. While the rental supplement is designed to help renters pay their rent during this emergency, renters will be responsible for any outstanding rent owing after the state of emergency has ended.

Reverse Mortgages

If you or someone you know has lost money in the stock market and is over the age of 55 a reverse mortgage can allow you to access your equity in a lump sum, monthly payment or combination of the two. A reverse mortgage is not viewed as income. You will still receive any entitled pensions and not have to take further losses in the stock market if that’s how you were drawing your living expenses. They will not have to traditionally income qualify, they will make no monthly payments and have access to there equity, this is a way better alternative than utilizing high-interest rate credit cards to get by.

Angela Calla is a 16 year award-winning woman of influence mortgage expert. Alongside 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 all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

It’s an honor to again be part of the Top 75 Mortgage Brokers in Canada. We’ve been blessed with the opportunity to help so many people in many unique situations over the years.

Angela Calla is a 16 year award-winning woman of influence mortgage expert. Alongside 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 all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

Angela Calla delivers useful information and mortgage clarity during these difficult times at the Tri-Cities Chamber of Commerce webinar. To book a personalized presentation that would benefit your network email us at callacom@dominionlending.ca

WATCH HERE

Links from today’s presentation:

Media

Global News Interview

The Mortgage Show

Facebook

The Angela Calla Team

Angela Calla Blog

List of Lenders

Credit Card Deferrals

Budgeting Tools

Reverse Mortgage

Mortgage Toolbox App Download

Amazon

The Mortgage Code

Other Helpful Links

BC Hydro

Fortis BC

ICBC

Angela Calla is a 16 year award-winning woman of influence mortgage expert. Alongside 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 all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

ATTENTION TENANTS AND LANDLORDS!!

BC Temporary Rental Supplement is NOW OPEN!

Please note you will need to prove income loss and tenancy, this is directly from the application process:

Proof of Income Loss

Submit one of the following for every family member aged 19 years or over whose employment income has decreased as a result of COVID-19.

• Record of Employment
• Copy of application for Employment Insurance or screenshot of current EI claim from My Service Canada online account
• Copy of application for Canada Emergency Response Benefit or screenshot of current CERB claim from My Service Canada online account
• Letter from your employer regarding reduced hours and reason

Proof of Tenancy and Rent

Submit one or more of the following to confirm tenancy and current monthly rent.

• Tenancy Agreement / Notice of Rent Increase
• Recent Rent receipt (within past 3 months)
• Bank statement showing recent rent payment to your landlord (within past 3 months)
• Letter from Landlord confirming tenancy and monthly rent

APPLICATION FORM HERE

Angela Calla is a 16-year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders to 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 all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

Some major Canadian banks are cutting credit card interest for clients that are facing financial hardship because of COVID-19.

Vancity, a local credit union, announced on April 8 that it would defer minimum payments and drop interest rates entirely – to 0% – for their cardholders who are facing financial difficulty because of the pandemic.

In a release on Friday, RBC said it will be by cutting interest by 50$ for small business and personal clients who are already deferring minimum payments on their credit cards.

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Angela Calla is a 16-year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders to 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 all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.