Things to Consider BEFORE making a Pre-Payment

General Angela Calla 31 Aug

Things to consider prior to making a prepayment

Paying down your mortgage is a smart step that’s always encouraged.
We recommend you first consider the following for your financial well-being as making a lump-sum pre-payment on a mortgage is one sided. Once you’ve made the payment, there are only two ways to get the money back out. Sell or pay an exit fee to refinance.

This is what you should consider prior to a lump-sum payment:

1- Do you have any debts at an interest rate higher than your mortgage you can use the money for instead to stop paying unnecessary interest?

2- Do you have six months of living expenses set aside so you don’t have to acquire debt if something comes up?

3- Have you topped up your RRSPs or RESP if applicable to take advantage of any government matching programs or tax advantages that can result in an income tax refund?

4- Are you looking at doing any home renovations, new vehicle purchase or job changes in the next while?

5. Are you considering making another property purchase in the next while (as you will need a deposit handy in cash)

If all the above are covered, that’s awesome and congratulations in having this capital to pay down your largest debt! All lenders have different pre-payment terms and timing in which they allow. The goal is to get the most flexible mortgage initially, and we can help. This is the reason when The Angela Calla Mortgage Team sets up a mortgage initially, we start with the minimum payment, while other increases are happening separately once we have a strategy in place. If you decide to execute a pay down strategy with periodic payments, we can cancel that at any time with no costs. There is always a reason behind “why” we ask what we ask and “why” we set things up as we do initially with the end result being the lowest cost of borrowing and best wealth strategy being the result. Remember- check your statements. Even with confirmation a task has been complete, we are not the ones physically processing the payments and technology is not perfect. The borrower is ultimately responsible to ensure there strategies are carried out!

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at callateam@countoncalla.ca or 604-939-8777.

Canadian Housing Market Very Strong in July

General Angela Calla 24 Aug

Today’s release of July housing data by the Canadian Real Estate Association (CREA) showed a blockbuster July with both sales and new listings hitting their highest levels in 40 years of data. This continues the rebound in housing that began three months ago.

National home sales rose 26% month-over-month (m-o-m) in July, which translates to a 30.5% gain from a year ago (see chart below). July’s sales activity was the strongest for any month in history. According to Shaun Cathcart, CREA’s Senior Economist,  “A big part of what we’re seeing right now is the snapback in activity that would have otherwise happened earlier this year. Recall that before the lockdowns, we were heading into the tightest spring market in almost 20 years. Things may have gone quiet for a few months, but ultimately the market we’re seeing right now is mostly the same one we were heading into back in March. That said, there are some new factors at play as well. There are listings that will come to the market because of COVID-19, but many properties are also not being listed right now due to the virus, as evidenced by inventories that are currently at a 16-year low. Some purchases will no doubt be delayed, but the new-found importance of home, lack of a daily commute for many, a desire for more outdoor and personal space, room for a home office, etc. will certainly also spur activity that otherwise would not have happened in a non-COVID-19 world.”

For the third month in a row, transactions were up on a month-over-month basis across the country. Among Canada’s largest markets, sales rose by 49.5% in the Greater Toronto Area (GTA), 43.9% in Greater Vancouver, 39.1% in Montreal, 36.6% in the Fraser Valley, 31.8% in Hamilton-Burlington, 28.7% in Ottawa, 16.9% in London and St. Thomas, 15.7% in Calgary, 12.1% in Winnipeg, 9.7% in Edmonton and 5.4% in Quebec City.

New ListingsThe number of newly listed homes climbed by another 7.6% in July compared to June, to a level of 71,879–the highest level for any July in history. New supply was only up in about 60% of local markets, as the rebound in supply appears to be tapering off in many parts of the country. The national increase in July was dominated by gains in the GTA. More supply is expected to come on the market in future months, particularly once a vaccine is widely available.

With the ongoing rebound in sales activity now far outpacing the recovery in new supply, the national sales-to-new listings ratio tightened to 73.9% in July compared to 63.1% posted in June. It was one of the highest levels on record for this measure, behind just a few months back in late 2001 and early 2002.

Based on a comparison of sales-to-new listings ratios with long-term averages, only about a third of all local markets were in balanced market territory, measured as being within one standard deviation of their long-term average, in July 2020. The other two-thirds of markets were all above long-term norms, in many cases well above.

The number of months of inventory is another important measure of the balance between sales and the supply of listings. It represents how long it would take to liquidate current inventories at the current rate of sales activity.

Housing markets are very tight, especially in Ontario, as demand has far outpaced supply. There were just 2.8 months of inventory on a national basis at the end of July 2020 – the lowest reading on record for this measure. At the local market level, a number of Ontario markets shifted from months of inventory to weeks of inventory in July.

Home Prices

The Aggregate Composite MLS® Home Price Index (MLS® HPI) jumped by 2.3% m-o-m in July 2020 – the second largest increase on record (after March 2017) going back 15 years. (see Table below). Of the 20 markets currently tracked by the index, they all posted m-o-m increases in July.The biggest m-o-m gains, in the range of 3%, were recorded in the GTA outside of the city of Toronto, Guelph, Ottawa and Montreal; although, generally speaking, most markets east of Saskatchewan are seeing prices accelerate in line with strong sales numbers. Price gains were more modestly positive in B.C. and Alberta.

The non-seasonally adjusted Aggregate Composite MLS® HPI was up 7.4% on a y-o-y basis in July the biggest gain since late 2017.

The MLS® HPI provides the best way to gauge price trends because averages are strongly distorted by changes in the mix of sales activity from one month to the next.

The actual (not seasonally adjusted) national average price for homes sold in July 2020 was a record $571,500, up 14.3% from the same month last year.

The national average price is heavily influenced by sales in the Greater Vancouver and the GTA, two of Canada’s most active and expensive housing markets. Excluding these two markets from calculations cuts around $117,000 from the national average price. The extent to which sales continue to fluctuate in these two markets relative to others could have further compositional effects on the national average price, both up and down.

 
Bottom Line

CMHC has recently forecast that national average sales prices will fall 9%-to-18% in 2020 and not return to yearend-2019 levels until as late as 2022. I continue to believe that this forecast is overly pessimistic. Here we are in the second half of 2020, and the national average sales price has risen 14.3% year-over-year.

The good news is that the housing market is contributing to the recovery in economic activity. While the course of the virus is uncertain, Canada’s government has handled the COVID-19 situation very well from both a public health and a fiscal and monetary perspective. The future course of the economy here will depend on the virus. While no one knows what that will be, suffice it to say that Canada’s economy is en route to a full recovery, but it may well be a long and bumpy one.

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at callateam@countoncalla.ca or 604-939-8777.

 

Chrystia Freeland replaces Bill Morneau to become first female finance minister

General Angela Calla 20 Aug

Deputy Prime Minister Chrystia Freeland has taken on a major new role: finance minister.

In a physically distant ceremony at Rideau Hall on Tuesday, Freeland removed her face mask briefly to take the oath of office and become the country’s new minister of finance before replacing the mask to bump elbows with both Prime Minister Justin Trudeau and Gov. General Julie Payette, also masked.

Veteran Liberal Dominic LeBlanc was also sworn in to take over the intergovernmental affairs portfolio.

The mini-cabinet shuffle follows the resignation Monday night of Bill Morneau after reports of a rift between him and Trudeau over the best course forward on the economic recovery from the coronavirus pandemic.

​Freeland was asked on Tuesday to share whether she has had disagreements with the prime minister and how they handled those, and to reflect on what it means to be the first woman in the role.

“It’s actually something we talked about yesterday and we reflected, I think with good humour, on a few of the issues we have disagreed on. I’m actually not going to catalog those,” she said.

“My motto has been to have open, candid conversations with the prime minister in private but also to have a united front when we come out in public … that’s a really, really important part of any working relationship.”

On being the first female finance minister, Freeland said: “It’s about time that we broke that glass ceiling.”

“This particular economic challenge our country is facing, the economic challenge created by the coronavirus is hitting women particularly hard. It’s hitting mothers particularly hard,” she continued.

“Certainly I’m glad that I’ll have an opportunity as a woman, as a mother, to address this really important challenge our country is facing.”

Morneau had been under fire over his role in the WE Charity scandal, particularly his failure to recuse himself from cabinet discussions on the group given his family financial ties.

READ MORE and watch the Global News clip HERE

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at callateam@countoncalla.ca or 604-939-8777.

More homes were sold in Canada in July than in any month in history

General Angela Calla 18 Aug

Vancouver sales increased 44 per cent on the month and 24 per cent from July 2019.

Canadian home sales surged to a record in July as homebuyers emerged from lockdowns.

Transactions for existing properties reached 62,355 in the month, up 26 per cent from a month earlier, the Canadian Real Estate Association reported. Benchmark prices were 2.3 per cent higher on the month, as pent-up demand for homes collided with extremely low inventory levels.

More homes were sold in Canada in July than in any month in history… And, let me tell you, it sure felt like it!! Mortgage rates are at all-time historical lows, home owners are discovering that their current homes aren’t big enough, separations 😢 – all of these seemed to drive a flurry of sales activity.

Also, with rates so low, we saw many people refinancing and transferring their mortgages. What a summer… what a year! And we’re only in August.

It will be interesting, to say the least, to see what the rest of the year brings for the real estate and mortgage market.

Stay tuned! You know we’ll always keep you updated.

READ MORE HERE

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at callateam@countoncalla.ca or 604-939-8777.

Canada Finance Minister, Bill Morneau, Resigns

General Angela Calla 18 Aug

Canada’s finance minister resigned on Monday amid friction with Prime Minister Justin Trudeau over spending policies and after coming under fire for his ties to a charity tapped to run a student grant program.

Bill Morneau said he would not run for parliament again and would instead seek to become the next secretary general of the Organisation for Economic Cooperation and Development (OECD).

Just last week, Trudeau had expressed confidence in his finance minister as rumors swirled of a rift between the two men. Morneau, 57, has been in the job since Trudeau’s Liberals took power in 2015.

“This morning I went to the prime minister and I tendered my resignation,” Morneau told reporters at a hastily arranged news conference on Monday evening.

“It’s appropriate that the prime minister finds someone with a longer-term approach for the role since I’m not running for office,” he added.

Morneau’s Toronto seat, a mix of low-income flats and million dollar homes that the party has held since 1993, is unlikely to be at risk for the Liberals, who have a minority government.

One front-runner to replace Morneau is Deputy Prime Minister Chrystia Freeland, a close Trudeau ally, who has held several high-profile cabinet roles.

Morneau and his team have pushed back against other cabinet ministers about how much pandemic funding was needed, including to what extent the post-lockdown recovery could be helped by investing in environmental projects, sources told Reuters on Sunday.

Trudeau, who campaigned on a platform to tackle climate change, believes the 2021 budget should have an ambitious environmental element to start weaning the heavily oil-dependent economy off fossil fuels and he recently hired former Bank of England Governor Mark Carney as an informal adviser, aides say.

Canada’s budget deficit is forecast to hit C$343.2 billion ($253.4 billion), the largest shortfall since World War Two, this fiscal year. Total coronavirus support is nearly 14% of gross domestic product.

The Canadian dollar showed little reaction to the news.

“We had a little bit of a sell-the-rumour type weakness in the lead up to the resignation,” said Ray Attrill, head of forex strategy at National Australia Bank in Sydney. “There doesn’t seem to be any suggestion at this stage that this any broader implications for the Canadian government.”

Other possible replacements for the key post include Foreign Minister Francois-Philippe Champagne and President of Canada’s Treasury Board Jean-Yves Duclos.

In a statement, Trudeau thanked Morneau for his service over the past five years and said he would “vigorously support” Morneau’s bid to head the OECD.

OECD nominations are due by October. The United States plans to nominate deputy White House chief of staff Christopher Liddell for the secretary general job, a senior U.S. official said last month.

Adding to Morneau’s challenges, several cabinet members were upset when he disclosed he had forgotten to repay travel expenses covered for him by a charity at the heart of an ethics probe. Morneau and Trudeau are both facing ethics inquiries related to the charity.

Morneau’s resignation “is further proof of a government in chaos,” Conservative Party leader Andrew Scheer said on Twitter, adding the “government is so consumed by scandal that Trudeau has amputated his right hand to try and save himself.”

The clash reflected concerns among business leaders that Ottawa had little apparent interest in the economy, sources told Reuters.

Business and analysts have also fretted about Ottawa becoming distracted by the discord as it tackles the coronavirus crisis.

“I doubt you’ll be seeing other finance ministers around the world step down at this time of elevated economic and fiscal uncertainty,” said David Rosenberg, chief economist at Rosenberg Research & Associates.

“It’s like a boxer being forced to take his gloves off in the fifth round.”

READ MORE HERE

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at callateam@countoncalla.ca or 604-939-8777.

Repayment Plan Framework Released – Landlord BC

General Angela Calla 18 Aug

In an announcement on August 14 the Provincial Government released the full details on the Residential Tenancy Branch’s Repayment Plan framework. This announcement brings with it a significant change to the timing of the end date of the moratorium on ending tenancy for unpaid rent. It was previously announced that this would end when the Provincial State of Emergency is lifted, the updated regulations have changed this to a fixed date; August 17. LandlordBC fully supports this change as it removes the significant uncertainty surrounding the previously announced framework.

The changes are part of an update to the Residential Tenancy Regulations which set out a clear process landlords must follow to address rent due but unpaid between March 18th through to August 17. The updated regulations also provide guidance regarding late fees and rent increases.

Unpaid Rent and/or Utilities from March 18 to August 17, 2020

Please Note: Do not serve the repayment plan until August 18th. Use the RTB Repayment Plan form. 

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at callateam@countoncalla.ca or 604-939-8777.

Mortgage Update: Qualifying Rate Reductions

General Angela Calla 12 Aug

The stress test rate is about to fall for the second time in three months following cuts by Canada’s Big Six banks to their 5-year fixed posted rates.

Mortgage experts say the Bank of Canada will reduce the benchmark qualifying rate—a.k.a., “stress test rate”—from 4.94% to 4.79% this week.

National Bank of Canada cut its posted 5-year fixed rate by 15 bps on Monday, following similar cuts by BMO and CIBC over the weekend, while RBC and TD lowered their rates last week.

In May, similar big-bank posted rate reductions caused the qualifying rate to fall from its then-current level of 5.04%, since the rate is based on a mode average of the big banks’ 5-year fixed posted rate. That marked their first time since January 2018, when OSFI’s stress test was introduced, that the benchmark qualifying rate fell below 5%.

It will make qualifying easier, or permit some people to borrow fractionally more.

Just how much more? Well, not a whole lot in the scheme of today’s average home prices.

Rob McLister, founder of RateSpy.com, calculated that a buyer earning $70,000 a year and purchasing with the minimum 5% down would be able to afford roughly $4,000 more home, or about 1.2%.

“That’s not much to get excited about, but on a market-wide basis, small buying power improvements are inflationary for home prices, other things equal,” he wrote.

At 4.79%, the benchmark qualifying rate will be just 15 bps above the all-time low of 4.64%, last seen in July 2017, McLister notes.

Stress Test Still Well Above Market Rates

Despite the reduction, the stress test rate is still roughly 290 basis points above the lowest nationally available insured rate today.

And that’s despite the current interest rates expectations, including Bank of Canada Governor Tiff Macklem’s suggestion there will be no interest rate hikes for the next two or even three years.

“Interest rates are very low and they are going to be there for a long time,” Macklem said.

A Better Formula Still on Hold

While these recent small reductions to the mortgage qualifying rate are assisting affordability to a small degree, industry leaders have called on the federal government to proceed with a plan to change how the stress test rate is calculated.

In April, the Department of Finance said homebuyers purchasing with an insured mortgage would be stress-tested at a rate equal to the weekly median 5-year-fixed insured mortgage rate plus 2%.

At the time, when the stress test rate was 5.19%, the change would have reduced it to 4.89%. But in March, at the height of the COVID-19 pandemic, the government announced it would suspend the proposed changes.

A similar change for the uninsured mortgage stress test, which was being considered by the Office of the Superintendent of Financial Institutions (OSFI), was also put on hold.

The pause on new regulatory changes was sensible given the marketplace uncertainty in March. However, as we begin to open businesses again, now is the time for OSFI and Finance to consider the implementation of the new test.

Sourced here

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at callateam@countoncalla.ca or 604-939-8777.

Canadian Economy Recovers Almost Half Its COVID-Induced Loss in May and June

General Angela Calla 10 Aug

The Canadian economy bounced back sharply in May and June as Canadian provinces eased lockdown measures.

GDP expanded 4.5% in May, and activity in June was even more robust at an estimated 5% rise. Cumulatively, GDP rose 10% in May and June, after plummeting more than 18% in March and April. These figures are calculated on a month-over-month basis.

These figures point to about a 40% annual rate decline in second-quarter GDP in Canada, which is roughly in line with economists’ projections. South of the border, the US posted a 33% contraction in GDP for the second quarter, the most massive plunge on record (see details below). It’s not surprising that Canada’s economy tanked by more than the US in Q2, as Canada enacted more aggressive restrictions earlier than the US and eased them more slowly. These public health restrictions were well worth it, as Canada has had far greater success at flattening the curve of new cases and deaths. Moreover, Canada’s economy will likely outpace the US in Q3, showing the benefit of allowing the public health considerations to dominate.

READ MORE HERE

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at callateam@countoncalla.ca or 604-939-8777.

Global News Open House: Vacation Properties with Angela Calla

General Angela Calla 10 Aug

Not even a pandemic can slow buyers. More of us are working from home, staying in, homeschooling and all need a space to co-habitat together.

Canadians want more space. A place to recharge, work, and educate their children. BC in particular is being showcased for all the beautiful locations with waterfront views. Only minutes away we have more affordable real estate outside of the lower mainland with a slower lifestyle pace – a place where you can truly relax.

If you’re looking to enhance your lifestyle there could be some key steps getting in the way of your dream to move up the property ladder or acquire a second home to staycation this summer. We recently did a segment with Global to elaborate on what might prevent you from living this dream!

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at callateam@countoncalla.ca or 604-939-8777.