Canadian Homebuyers Trying to Beat Rate Hikes

Latest News Angela Calla 21 Dec

Housing Demand Outpaces Supply

Today the Canadian Real Estate Association (CREA) released statistics showing national existing-home sales rose 0.6% in November following the whopping 8.6% surge the month before. Sales could have been higher had it not been for the limited supply of homes for sale. Homebuyers are anxious to finalize purchases before the Bank of Canada hikes interest rates next year.Across the country, sales gains in Calgary, Edmonton, the B.C. interior, Regina and Saskatoon offset declines in activity in the GTA and Montreal.

The actual (not seasonally adjusted) number of transactions in November 2021 was firm historically, edging down a scant 0.7% on a year-over-year basis, missing the 2020 record for that month by just a few hundred transactions.

On a year-to-date basis, some 630,634 residential properties have traded hands via Canadian MLS® Systems between January and November 2021, far surpassing the annual record 552,423 sales for all of 2020.

“The fact is that the supply issues we faced going into 2020, which became much worse heading into 2021, are even tighter as we move into 2022. Interest rate hikes will make it even harder for new entrants to break into the market next year, even though activity may remain robust as existing owners continue to move around in response to all of the changes to our lives since COVID showed up on the scene. As such, the issue of inequality in the housing space will remain top of mind. One wildcard will be what policymakers decide to do with the national mortgage stress test, which could act as a kind of cushion against rising rates for young and/or first-time buyers. It could also make things that much harder for them,” said Shaun Cathcart, CREA’s Senior Economist.

New Listings

The number of newly listed homes rose by 3.3% in November compared to October, driven by gains in a little over half of local markets, including the GTA, Lower Mainland, Montreal, and many markets in Ontario’s Greater Golden Horseshoe.

With new listings up by more than sales in November, the sales-to-new listings ratio eased a bit to 77% compared to 79.1% in October. The long-term average for the national sales-to-new listings ratio is 54.9%.

About two-thirds of local markets were seller’s markets based on the sales-to-new listings ratio being more than one standard deviation above its long-term mean. The other one-third of local markets were in balanced market territory.

There were just 1.8 months of inventory on a national basis at the end of November 2021, tied with March 2021 for the lowest level ever recorded. The long-term average for this measure is more than 5 months.

Home Prices

In line with some of the tightest market conditions ever recorded, the Aggregate Composite MLS® Home Price Index (MLS® HPI) was up another 2.7% on a month-over-month basis in November 2021.
The non-seasonally adjusted Aggregate Composite MLS® HPI was up by a record 25.3% year-over-year in November.

Year-over-year price growth has crept back up to nearly 25% in B.C., though it remains lower in Vancouver, on par with the provincial number in Victoria, and higher in other parts of the province.

Year-over-year price gains are still in the mid-to-high single digits in Alberta and Saskatchewan, while gains have risen to about 13% in Manitoba.

Ontario saw year-over-year price growth hit 30% in November, with the GTA continuing to surge ahead after trailing most other parts of the province for most of the pandemic.

Greater Montreal’s year-over-year price growth remains at a little over 20%, while Quebec City was only about half that.

Price growth is running above 30% in New Brunswick (higher in Greater Moncton, lower in Fredericton and Saint John), while Newfoundland and Labrador is now at 10% year-over-year (lower in St. John’s).

Bottom Line–Lots of News Today

Canada continues to contend with one of the developed world’s most severe housing shortages; as our borders open to a resurgence of immigration, excess demand for housing will mount. The impediments to a rapid rise in housing supply, both for rent and purchase, are primarily in the planning and approvals process at the municipal and provincial levels. Liberal Party election promises do not address these issues.

Inflation pressures are mounting everywhere. The US posted a year-over-year inflation rate for November at 6.8%, up from 6.2% posted the month before. This undoubtedly led the US Federal Reserve to issue a hawkish statement today, intensifying their battle against inflation. They announced that they will double the pace at which it’s scaling back purchases of Treasuries and mortgage-backed securities to $30 billion a month, putting it on track to conclude the program in early 2022, rather than mid-year as initially planned.

Projections published alongside the statement showed officials expect three quarter-point increases in the benchmark federal funds rate will be appropriate next year, according to the median estimate, after holding borrowing costs near zero since March 2020.

According to Bloomberg News, “The faster pullback puts Powell in a position to raise rates earlier than previously anticipated to counter price pressures if necessary, even as the pandemic poses an ongoing challenge to the economic recovery. The Fed flagged concerns over the new omicron strain, saying that risks to the economic outlook remain, including from new variants of the virus.”

On more positive news, Canada’s inflation rate held steady at 4.7% y/y in November, well below the pace in the US. Excluding food and energy products, CPI ticked slightly lower to 3.1% from a year ago in November, or 2.7% on an annualized seasonally adjusted basis relative to the pre-shock February 2020 level. Roughly half of that 2.7% can still be attributed to rising expenses related to home-owning and car purchase or leasing. But the breadth of inflation pressure has also widened, with 58% of the consumer basket seeing faster-than-2% annualized growth in November from pre-pandemic (2019) levels on average over the last three months. That compares to 47% in February 2020. The broadening is expected to carry on in 2022 as rising input, transport and labour expenses continue to flow through supply chains for a wider swath of goods and services. Further disruptions to supply chains and energy markets from Omicron and the BC flood later in November are expected to add to price uncertainties in the near term.

In a speech today, Governor Tiff Macklem of the Bank of Canada assured the public that the Bank of Canada would remain the country’s number-one inflation fighter. Macklem clarified that flexibility in their new mandate won’t apply in situations — like now — when inflation is considerably above target.

At a press conference after the speech, Macklem noted he wasn’t comfortable with current elevated levels of inflation and the “time is getting closer” for policymakers to move away from the forward guidance. Markets are pricing in five interest rate hikes next year by the Bank of Canada.

This article is from Sherry Cooper Assoc.


Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

Homebuyer

OSFI confirms Minimum Qualifying Rate for uninsured mortgages

General Angela Calla 20 Dec

OTTAWA ─ December 17, 2021 ─ Office of the Superintendent of Financial Institutions

Today, the Office of the Superintendent of Financial Institutions (OSFI) confirmed that the minimum qualifying rate for uninsured mortgages will remain the greater of the mortgage contract rate plus 2 percent or 5.25 percent.

In an environment characterized by increased household indebtedness and low-interest rates, it is essential that lenders test their borrowers to ensure that mortgages can continue to be paid during more adverse conditions. This environment supports today’s decision to maintain the current minimum qualifying rate.

Mortgages are typically one of the largest exposures that banks carry on their balance sheets. Ensuring that borrowers can continue to repay their mortgage loans strongly contributes to the safety and soundness of Canada’s financial system.

OSFI reviews and communicates the minimum qualifying rate at least every December. Throughout the year, we will continue to monitor the appropriateness of the minimum qualifying rate and will make further adjustments, if conditions warrant.  

Quote

“Sound mortgage underwriting is critical for maintaining the stability of the financial system. This is especially true now when changing conditions such as potentially rising interest rates could make repaying mortgages more difficult in the future.”

– Peter Routledge, Superintendent

Quick Facts

  • Uninsured mortgages are residential mortgages with a down payment of 20 percent or more.
  • OSFI makes decisions on the minimum qualifying rate for uninsured mortgages based on data from its ongoing monitoring of federally regulated financial institutions as well as its analytical work on system-wide and sectoral developments.
  • OSFI works with its federal financial regulatory partners, notably the Department of Finance Canada and the Bank of Canada when setting the minimum qualifying rate for uninsured mortgages.
  • The Department of Finance is responsible for setting the minimum qualifying rate for insured mortgages.

You can view this news release on the Government of Canada.


Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

OSFI

Top 4 Considerations for Mortgage in 2022

General Angela Calla 16 Dec

As we approach a new year, there are always a few things to keep in mind when it comes to our mortgage. We have put together a few considerations to keep at the forefront of the ever-changing market.

Sliding Scale
With home prices surging all over the country you may be surprised to learn that purchases over a million dollars may need a larger down payment than 20%. (Purchasing for Over $1 Million? Don’t Forget These Considerations). With the increase of working from home and the ability to live in different provinces, you will want to be clear with your mortgage professional on the prices and areas to ensure you have enough down payment for your purchase.

Reverse Mortgages
The Bank of Mom and Dad is very popular, and the number of gift amounts has risen. A recent report from Yahoo Finance noted that 30% of home buyers had help from family. This coupled with the fact that seven out of ten retirees saying they don’t feel they have enough for retirement makes the reverse mortgage the perfect non-taxable or cash flow impacting way parents can reach both of these goals. Now they don’t have to downsize to live out their life goals (with no inventory there is nowhere to go anyways!).

Utilize Home Equity
Get out of credit card debt and payout those student loans and cars if you wanted to buy a second home. With home prices rising as much as 30% and debt holding people back from moving up the property ladder, this is the perfect time to get that equity working for you. $50,000 in outstanding debt can be rolled into a mortgage for $250/month. Compared that to whatever you are paying for your loans, chances are, you will save hundreds or even thousands per month! So, get the compound effect working for you instead of against you. This goes a long way when you consider $480/month in outside loan payments takes away $100,000 in mortgage qualification! Not when you turn the tables.

Pre-Pandemic Interest Rates Will Likely Return
If you or a loved one has a mortgage renewal in 2022 you will want to renew it in the first quarter of the year and the Bank of Canada has mentioned, they still plan on sticking with their forecast of rising rates later in the year (Bank of Canada Holds Rate Target Steady Until April to September 2022).


Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

Bank of Canada

Federal Fiscal Update: Canada Has Weathered The Pandemic Storm Relatively Well

General Angela Calla 16 Dec

Finance Minister Chrystia Freeland extolled the performance of the Canadian economy in response to the extraordinary support provided by the federal fiscal authorities and the Bank of Canada in the past 21 months. The economic recovery has been the second strongest in the g-7, and the death rate from Covid-19 was the second-lowest. Emergency spending by the federal government was enormous, but the federal government maintained its triple-A credit rating. The Canadian government on Tuesday cut its deficit forecast for the current fiscal year, citing higher tax revenues and less emergency aid spending while earmarking new funds to fight the Omicron coronavirus variant.

“As we look ahead, we are mindful of elevated inflation,” Freeland said in the forward of the update. “We know inflation is a global phenomenon driven by the unprecedented challenge of re-opening the world’s economy. Turning on the global economy is a good deal more complicated than turning it off. We, like other countries, are experiencing the consequences of a time unlike any other.”

Here are some of the key forecasts presented in the fiscal update:

  • The budget deficit came in at $327.7 billion in the last fiscal year (FY) 2020-21–almost $27 billion less than forecast in the spring budget. As it turns out, revenue came in $20 billion stronger than expected, while expenses were $6 billion lower than expected.
  • This year’s red ink is expected to be $144.5 billion versus the $154.7 billion forecast in April.
  • Canada’s debt-to-GDP ratio at 47.5% last FY will peak at 48% this FY versus 51.2% expected in April and fall subsequently to 44% in FY 2026-27. This compares to the pre-pandemic levels of roughly 31%.

“It has been a hard 21 months,” said Freeland. “As we brace ourselves for the rising wave of Omicron, we know that no one wants to endure new lockdowns,” Finance Minister Chrystia Freeland said in prepared remarks.

The Trudeau Liberals are pointing to improvements in the labour market, personal incomes and corporate profits as it forecasts tens of billions of dollars in additional revenue annually through 2026.

There is $13 billion in additional spending since the budget aimed at “finishing the fight against COVID-19” and another $4.5 billion in provisions for any Omicron response this fiscal year. There is $1.7 billion for rapid COVID tests in the fiscal update and $2 billion for COVID therapeutics and treatments. In a nod to the persistence of COVID, the previously announced extensions of the wage, rent and recovery benefits in the fall will put another $6.7 billion on the COVID tab this fiscal year.

When it comes to feeding Canada’s economic growth in the years to come, Ottawa is touting the importance of immigration to address labour shortages. The fiscal update earmarks $85 million in the 2022-23 fiscal year to speed up the application process to bring in workers for key industries hit by labour shortage coming out of the pandemic.

The “Underused Housing Tax Budget 2021” announced the government’s intention to implement a national, annual 1.0% tax on the value of non-resident, non-Canadian-owned residential real estate in Canada that is considered vacant or underused. It is proposed that the tax be effective for the 2022 calendar year.

Bottom Line

Today’s fiscal update document may well be most notable in what it omitted. There was no mention of the many new spending promises marked in the summer’s Liberal election platform. Those promises added up to $78 billion over five years.

The Opposition parties in the House of Commons harped on rising inflation and its negative impact on Canadian households and businesses. To be sure, the Trudeau government is not responsible for the surge in global inflation arising from the supply disruptions, labour shortages and enormous pent-up demand. Still, with the Bank of Canada poised for rate hikes next year, the Liberals could well be accused of stoking inflation with additional fiscal stimulus. We will undoubtedly hear more on the election promises when the government’s 2022 budget is announced, likely sometime this spring.

Article source: Sherry Cooper Assoc.


Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

Fiscal update

How We Can Help with a Plan Wherever You Are

General Angela Calla 15 Dec

With a new year approaching it’s very common to consider a home purchase. Some of us may feel unsure of where to start, or how to set up a plan.

I’m here to let you know, wherever you are today, that we can help. Help ensure that you have the best resources to achieve your goals for the years ahead using our experience and developed networks.

Maybe you want to own a home but have no down payment and don’t even have the money to spare just yet, or feel that it is just too far ahead?

Perhaps you would like to move up the property ladder but wonder if you would qualify or if there is debt from credit cards and lines of credit holding you back.

Maybe you are having a life transition and the emotions of it feel like a lot to bear. I can tell you we understand how you feel and will hold your hand through all of it.

There are a lot of myths floating around out there, especially with millennial homebuyers. I did an interview with Global News that touched on just this topic.

But you don’t need to worry! We have teamed up with financial planners to ensure that you have a budget together, are not overpaying on insurance, and plugging your money in the best places. That way you can acquire tax refunds, find pensions, find reduced insurance costs, or even set up a monthly savings plan to help you reach your goal to own a home.

We are teamed up with mortgage brokers to ensure your mortgage is working to your best advantage so that you have the best rate and can consolidate your debt to improve your cash flow, increasing your future purchasing power.

And life changes, we have been through a few, and if buying or selling is in your future, I will help with that.

If you would like an introduction to any of the above, please email me with the best number for us to connect. You can also get started by downloading our Dominion Lending Centre Mortgage App, available on iOS and Android.

We are committed to helping you with anything we can to achieve the best year for you and your loved ones to come.


Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

Plan

Bank of Canada Holds Rate Target Steady Until April to September 2022

General Angela Calla 14 Dec

Bank of Canada Leaves Expectations For 2022 Rate Hikes Intact

The Bank of Canada decided to keep its target for the overnight rate at 0.25%, in line with forecasts and to maintain its forward guidance, which sees a rise in the overnight rate sometime in the middle quarters of 2022. Until then, policymakers vowed to provide an adequate degree of monetary stimulus to support Canada’s economy and achieve the inflation target of 2%. On the price front, the ongoing supply disruptions continue to support high inflation rates, but gasoline prices, which have been a significant upside risk factor, have recently declined. Still, the BoC expects inflation to remain elevated in the first half of 2022 and ease towards 2% in the second half of the year. Finally, recent economic indicators suggested the economy had considerable momentum in Q4, namely in the labour and housing markets. Still, the omicron variant of the coronavirus and the devastation left by the floods in British Columbia has added to downside risks.

The Bank’s press release went on to say, “The Governing Council judges that in view of ongoing excess capacity, the economy continues to require considerable monetary policy support. We remain committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2% inflation target is sustainably achieved. In the Bank’s October projection, this happens sometime in the middle quarters of 2022. We will provide the appropriate degree of monetary policy stimulus to support the recovery and achieve the inflation target.”

In October, the Bank ended its bond-buying program and is now in its reinvestment stage. It maintains its Government of Canada bonds holdings by replacing securities as they mature.

Bottom Line

Traders continue to bet that the Bank of Canada will hike interest rates by 25 basis points five times next year. This would take the overnight rate from 0.25% to 1.5%. I think this might be overly hawkish, expecting a more cautious stance of three rate hikes next year to a year-end level of 1.0%. This expectation has already had an impact on economic activity. According to local real estate boards reporting in the past week, November home sales were boosted by buyers hoping to lock in mortgage rates before they rise further next year.

You can read this article at Sherry Cooper Assoc. 


Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

Bank of Canada

How a reverse mortgage works in Canada — and why you should consider one

General Angela Calla 14 Dec

This is a fairly well-balanced article on Reverse Mortgages that is worth the read if you are a homeowner within 10 years of retirement, are in retirement, OR have parents that are retired already.

What is missing from this article (and most that I see on the subject) are two important considerations I have gleaned from working with some high-level Financial Planners and Investment Advisors over the last decade and a half:

1) In retirement, activating your home as part of a well-thought-out retirement plan will “slow the pace of redemption” (financial planning jargon for “make your investments/savings last longer”, often much longer).

This means you will have a better retirement, your investments will last longer and you will get to do more of the things you want to do throughout. You will also have a larger remaining estate at the end of your plan, or life, to pass on to your estate (children), dispelling the myth that tapping into your home equity will cause you to lose everything. (Read the study by Sacks & Sacks, two Ph.D.’s in Economics on “Reversing the Conventional Wisdom”)

2) Once you are approved and the Reverse Mortgage allows you to remain in control for the rest of your life! I cannot emphasize enough how much control this gives you in retirement especially if you are still in a spousal relationship, the protection this offers is unparalleled:

2a) Nothing else in the marketplace approves you for life,

2b) If one spouse passes away, the Reverse Mortgage simply passes to the surviving spouse with no re-qualifying, huge protection that nothing else offers in the marketplace,

2c) The two caveats are:

  • That you have to keep your property taxes up to date, which you would have to do with any mortgage or home equity line of credit, and
  • That you keep valid house fire insurance, which you would have to do with any mortgage or home equity line of credit

By the way, I have had so many clients who have significant assets use reverse mortgages while working with their Financial Planners and Advisors that I have lost count. Don’t think a Reverse Mortgage means you have failed in planning for retirement, in fact, the smartest homeowners understand that using all of your assets to fund retirement lowers the overall risk of having to rely on one source. Think of it as diversifying your portfolio, but during the redemption (withdrawal) phase of financial planning. Is a Reverse Mortgage for 100% of homeowners, no, but it should be for the vast majority of homeowners and it certainly should be looked at by 100% to make sure that you are making an educated decision about retirement.

You can read the full article mentioned in this blog at MoneySense.


Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

reverse

Angela Calla Mortgage Team Update

General Angela Calla 8 Dec

Good Afternoon,

We hope this finds you safe and healthy in these early days of December. At The Angela Calla Mortgage Team, we are always looking for ways to help you review options to save you money and increase monthly cashflow.

I was asked recently to contribute to an article for MoneySense magazine and I wanted to share with you a few of the key points we covered in todays changing market and this quote from the article.

“It is essential that we normalize making plans when it comes our mortgage”

Let’s look at a couple of our clients from this week as examples.

Ryan of Surrey, works as a Project Manager in construction. After working with our team, we were able to save them $3785.05 per month! With two kids this would go a long way to plan for their future or any potential job interruptions.

Similarly, Lisa from Coquitlam works as a Taxpayer Services Agent. In total we saved them $2,592.52 per month after working with us! With retirement approaching, they can rest with ease to make up for the shortfalls they had with their investments and speed up their retirement.

Both of these circumstances, with our help reviewing the numbers, the clients ended up breaking their existing mortgage, and using the equity to pay out their credit cards, lines of credit, or any outstanding debts, for a fresh start in 2022!

Who do you care about that would like to ensure they are saving the most amount of money on their mortgage?

Simply reply back to this email with the best phone number to reach you at and we can help.

Wishing you and yours all the very best for this holiday season!


Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

Savings

Bank of Canada Holds Benchmark Interest Rates Steady in Final Decision of 2021

General Angela Calla 8 Dec

The Bank of Canada made its eighth and final (scheduled) interest rate decision of the year and for the eighth time, left its overnight benchmark unchanged at 0.25%. As a result, the Bank Rate stays at 0.5%.

These low rates have been a feature of monetary policy since March 2020 with the initial pandemic lockdown of the economy. 

Going into today’s announcement, the question on the minds of economists and borrowers alike is when will the Bank change its policy?  We looked for clues in the Bank’s statement and summarize what was said below:

Inflation

  • CPI inflation is elevated and the impact of global supply constraints is “feeding through” to prices on a broader range of goods
  • The effects of these constraints will likely take some time to work their way through, given existing supply backlogs
  • Gasoline prices, a major factor pushing up CPI inflation, have recently declined
  • Core measures of inflation are little changed since September
  • The Bank is closely watching inflation expectations and labour costs to “ensure that the forces pushing up prices” do not become embedded

Canadian housing & economic performance

  • Housing activity had been moderating, but appears to be regaining strength, notably in resales
  • Canada’s economy grew by about 5.5% in the third quarter, in line with expectations and bringing the level of GDP to about “1.5% below the last quarter of 2019, before the pandemic began”
  • Third-quarter 2021 GDP growth was led by a rebound in consumption, particularly services, as restrictions were further eased and higher vaccination rates improved confidence
  • Persistent supply bottlenecks continued to inhibit growth in other components of GDP, including non-commodity exports and business investment
  • Recent indicators suggest the economy had considerable momentum heading into Q4
  • Broad-based job gains in recent months have brought the employment rate “essentially back” to its pre-pandemic level
  • Job vacancies remain elevated and wage growth has picked up
  • Devastating floods in British Columbia and uncertainties arising from the Omicron (COVID-19) variant “could weigh on growth” by compounding supply chain disruptions and reducing demand for some services

Global economy

  • The global economy continues to recover from the effects of COVID-19
  • Economic growth in the United States has accelerated, led by consumption, while growth in some other regions is moderating after a strong third quarter
  • Inflation has increased further in many countries, reflecting strong demand for goods amid ongoing supply disruptions
  • Omicron has prompted a tightening of travel restrictions in many countries and a decline in oil prices, and “injected renewed uncertainty”
  • Accommodative financial conditions are still supporting economic activity

Outlook: Stimulus continues

The Bank continues to expect CPI inflation to remain elevated in the first half of 2022 and ease back towards 2% in the second half of next year.

The Bank’s Governing Council noted that in view of ongoing excess capacity, the economy continues to require “considerable monetary policy support.” Accordingly, it remains committed to holding its policy interest rate at the effective lower bound until economic slack is absorbed so that the Bank’s 2% inflation target is sustainably achieved.

In the Bank’s October projection, the inflation target would be sustainably achieved “sometime” in the middle quarters of 2022. It did not provide further updates to this timing. Consequently, the market is left to speculate about when rates will rise.

The Bank did note, however, that it will continue to provide the “appropriate degree of monetary policy stimulus” to support the recovery and achieve its inflation target.

Time to borrow

With the benchmark rate unchanged – for now –  but signs of a coming shift in monetary policy, it pays to think proactively about your property financing plans for 2022. First National is ready to help with prompt service and always competitive rates.

January 26, 2022 is the Bank of Canada’s next scheduled touch point on monetary policy. Please watch for First National’s Executive Summary the same day for an assessment. 

You can read always read the article on: First National


Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

Bank of Canada

DiY Holiday Gifting?

General Angela Calla 6 Dec

When it comes to the holidays, buying gifts can be overwhelming and expensive. Fortunately, it isn’t the only option! If you have some extra time and talent, do-it-yourself gifts are a wonderful way to make your friends and family feel cherished.

Thankfully, you don’t have to be a pro-level crafter to make someone a nice gift! Here are some great ideas for homemade gifts to help you get started: 

  • Family Recipe Book – To share all of your favourite meals and homemade recipes. Try writing out a journal or simply gluing recipe cards down in a book! You could even put the cards in a photo album for an easy and clean flipbook
  • Yummy Treats – Do you have a signature cookie recipe? Or maybe a special seasoning you create from scratch? Gifting homemade treats is a great way to celebrate the holidays! From filling a cute tin container with gingerbread to a mason jar brimming with your homemade mixture, your family and friends are sure to feel the love
  • Say Cheese! – From getting personalized mouse pads to mugs to candles, highlighting a favourite photo(s) and memory from the year can be a great way to show your loved ones how much you cherish them
  • Let Them be Pampered – Creating homemade bath bombs, soaps and/or scrubs is not as hard as you think! Creating a cute little pamper set with a couple different items can be the perfect pick-me-up for anyone on your gift list.
     

Fabrics from the Heart – Are you an excellent sewer? Cross-stitcher? Love to create with fabric and yarn? Gifting homemade washcloths, blankets, scarves or even clothing makes an exciting and unique gift that your family and friends are sure to love! 


Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click  here to view the latest news on our blog. 

Gifts

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