It was widely expected that US consumer price inflation would decelerate in July, reflecting the decline in energy prices that peaked in early June. The US CPI was unchanged last month following its 1.3% spike in June. This reduced the year-over-year inflation rate to 8.5% from a four-decade high of 9.1%. Oil prices have fallen to roughly US$90.00 a barrel, returning it to the level posted before the Russian invasion of Ukraine. This has taken gasoline prices down sharply, a decline that continued thus far in August. Key commodity prices have fallen sharply, shown in the chart below, although the recent decline in the agriculture spot index has not shown up yet on grocery store shelves. US food costs jumped 1.1% in July, taking the yearly rate to 10.9%, its highest level since 1979.

The biggest surprise was the decline in core inflation, which excludes food and energy prices. The shelter index continued to rise but did post a smaller increase than the prior month, increasing 0.5 percent in July compared to 0.6 percent in June. The rent index rose 0.7 percent in July, and the owners’ equivalent rent index rose 0.6 percent.

Travel-related prices declined last month. The index for airline fares fell sharply in July, decreasing 7.8%. Hotel prices continued to drop, falling 2.7% on the heels of a similar decrease in June. Rental car prices fell as well from historical highs earlier this cycle.

Bottom Line

The expectation is that the softening in inflation will give the Fed some breathing room. Fed officials have said they want to see months of evidence that prices are cooling, especially in the core gauge. They’ll have another round of monthly CPI and jobs reports before their next policy meeting on Sept. 20-21.

Treasury yields slid across the curve on the news this morning while the S&P 500 was higher and the US dollar plunged. Traders now see a 50-basis-point increase next month as more likely than 75. Next Tuesday, August 16, the July CPI will be released in Canada. If the data show a dip in Canadian inflation, as I expect, that could open the door for a 50 bps rise (rather than 75 bps) in the Bank of Canada rate when they meet again on September 7. That is particularly important because, with one more policy rate hike, we are on the precipice of hitting trigger points for fixed payment variable rate mortgages booked since March 2020, when the prime rate was only 2.45%. The lower the rate hike, the fewer the number of mortgages falling into that category.

(The article is courtesy of The Sherry Cooper Assoc.)

Angela Calla is an 18-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. 

Summer is finally here so be sure to enjoy it! To help you beat the heat AND save money while you do, here are some tips:

Use Portable and Ceiling Fans: Instead of cranking the A/C (and your electricity bill) consider cooling down with portable and ceiling fans.

They can help ease the stress on your unit when used together or help eliminate the need for it all together. Portable fans work by creating a breeze, helping to circulate the air and causing a wind-chill effect that hits your skin and helps keep you cool. For an extra blast of coolness, place a bowl of ice in front of the fan to create a refreshing mist of air!

• Avoid the Stove: While cooking can be a great way to warm up the house in the winter, it will create unnecessary heat in the summertime. Instead, consider cold meals such as salads or breaking out the BBQ.
• Keep the Curtains Drawn: As nice as it is to let the sun in, this can increase the heat in your house and cause extra stress on your A/C unit and fans. Instead, keep the curtains drawn (at least on very hot days) to help your home stay cool.
• Maintain the Air Filters: As always, the change of the season is a good time to check the air filters in your home. Dirty filters slow airflow and make the system work harder, which can lead to expensive repairs down the road. Replacing your air filters every three months is ideal to keep dirt and dust out of your system.

Swap to Energy Efficient Lighting: You have probably heard some of the reasons why LED lights have become so popular, but did you know that they also produce 75 percent less heat than incandescent bulbs, and can help keep room temperature down? This can help reduce monthly bills and keep your home more comfortable during the summer season!

Angela Calla is an 18-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. 

As of late, the impact of rising interest rates and inflation are causing many to struggle with their debt payments and expenses.

Here are just a few ways that CHIP reverse mortgage can help:

Prepayment for adult children – clients facing higher payments and looking for ways to reduce. Bank of mom/dad may be able to provide gift to paydown mortgage to bring payments down for kids or bring down TDS to allow them to move from a B to A lender.  No parent wants to see their kids struggle.

Renewal clients – those that are 55+ and at or nearing renewal and facing a much larger payment. In some cases, it may not be manageable from a cash flow perspective.  Consider a CHIP solution to eliminate the payment altogether

Clients in VIRM/HELOC – those 55+ and worried about an increase in VIRM payments or struggling with the increase in payment on the HELOC.  (Payment on a $300k Heloc balance has risen $500 since March!)   

Angela Calla is an 18-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. 

HomeEquity Bank’s very own Yvonne Ziomecki, EVP Marketing and Sales was recently a special guest of DLC’s COO Dong Lee on The Mortgage Show. In case you missed it, Dong and Yvonne spoke about a variety of topics, but especially about how brokers can use the CHIP Reverse Mortgage to help clients during this economic time.

Click on the links to watch clips answering some of Dong Lee’s questions below:

HomeRun Book & Pattie Lovett-Reid

Last year, Yvonne Ziomecki and President & CEO, Steven Ranson, co-authored a book about reverse mortgages. The book includes stories about how brokers have used reverse mortgages in their business. Click here to find out more about the book and also hear about how we have partnered with Pattie-Lovett Reid as our Chief Financial Commentator.   

Aging in Place As a Trend

How has the current landscape changed the perception of reverse mortgages in Canada? How has this perception affected both the growth of broker partners who have embraced the trend and of HomeEquity Bank? Click here to find out.  

How to Figure Out if A Reverse Mortgage is Right For Your Customer

How can you as a mortgage broker talk about a reverse mortgage solution with your clients, how can you identify which type of reverse mortgage product is right for your customer, and what should you consider before even offering the product? Click here to find out. 

Common Myths of a Reverse Mortgage

There continues to be myths that circulate about the reverse mortgage product in Canada. What are the most common myths and how can you debunk them? Click here to find out.  

Wrap Up with A Laugh

Yvonne finished her segment with one of our award-winning commercials. Click here to watch her end the segment with Dong Lee and enjoy the commercial. 

Remember, I am only an email or a phone call away. Don’t hesitate to reach out to me for ideas on how to speak to your 55+ clients about the CHIP Reverse Mortgage solution. If you are interested in reading the book about reverse mortgages, let me know and I can arrange to send you a copy of the book.

Angela Calla is an 18-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. 

When it comes to home renovations, we know things can add up quickly!

If you’re looking to update your home or make some changes to your space, there are a few simple things you can do that are affordable AND have a great return on investment:

1. Fresh Coat of Paint: It is amazing what a fresh coat of paint can do for the interior and exterior of your home or space. It is affordable, easy to do yourself and typically has a 60% return on investment, especially when it comes time to sell!
2. Refresh Your Floors: Flooring is the most worn element in any home. While replacing it may seem tedious, these updates tend to have a great return on investment garnering 100-150%. With options from updating carpet to hardwood, changing out your laminate or adding fresh tile to your bathroom or kitchen, new floors are an easy way to breathe new life into your home.
3. New Doors and Hardware: From installing brand new wood-stained garage doors to a statement front entrance to new baseboards and wainscotting or even a simple handle update, your home will feel fresh in no time! With a smaller WOW factor, even this minimal facelift can have a 50% return on your investment.
4. Updated Countertops and Cupboards: Kitchen renovations can typically be the biggest and most expensive, but they also have the best return on investment garnering a return of 75-100% after all it is the heart of the home. If you’re not ready to do a full kitchen renovation, consider updating your countertops and cupboard doors. You can expect to pay approximately $3,000 for granite or quartz countertops, which will freshen the space and make it look brand new!
5. Adding a Wooden Deck: Is your backyard functional? Does it scream summer get-together? If not, or if you think there is room for improvement, a great option can be adding a simple wooden deck! These can be built into almost any size or shape to suit your needs and is relatively affordable costing around $10,000 to $15,000 with a return of 80% when it comes time to sell.

If you’re looking to do a reno, contact me today about utilizing your home equity or refinancing your mortgage to apply funds to your new project!

Angela Calla is an 18-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. 

Here is a summary of Canada’s households and mortgages (see chart below).

Does this chart surprise you?

Angela Calla is an 18-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. 

The latest news has been focused on rising interest rates, surging inflation, and economic uncertainty with suggestions that the Canadian economy could be tripped into recession.

With all this information circulating, now is a good time to discuss ways to adapt your finances and protect your future.

Fortunately, there are a few key things you can do to get started today!

1. Set a budget and reduce monthly expenses and overall debt by including the following:

1. Review your income and expenses and identify areas for reduction – such as getting a cheaper cell phone plan, reducing streaming service subscriptions, reviewing transport costs, etc.
2. Make a list of your current high-interest loans (such as credit card balances). If your mortgage is up for renewal, you may be able to benefit by consolidating debt into your mortgage to save on interest and free up cash flow with one payment. Refinancing your mortgage before the renewal is also an option, but a review of the penalty cost versus your debt consolidation goal should be considered. As your mortgage professional, I can assist you with this analysis.
3. Allot a percentage of your income towards savings such as an emergency fund. Your goal should be to have the equivalent of 3 to 6 months of earnings in this fund to provide breathing room should you lose your job or face any unexpected expenses. Another form of emergency funds could also be a line-of-credit. Once set-up, these generally have no cost to you unless you use it in the event of an emergency.

Having a healthy and realistic budget will give you peace of mind and allow you to properly allocate your monthly cash flow between debt, expenses, and savings.

2. Evaluate your investment portfolio:

1. While you will want to avoid making any knee-jerk reactions, it maybe a good time to diversify your portfolio to help reduce risk. Consider rerouting your investment to real estate or other areas to ensure you have various sources of income and always talk to an expert.

3. Find additional income sources!

1. Many people have found innovative ways to increase their income by asking the following three questions:
   1. Are you a fit for a potential promotion?
   2. Do you have a review coming up?
   3. Do you have transferable skills that you can apply to consulting or additional contract work?

One final reminder – don’t panic. I know the word “recession” can be stressful but understanding what is happening and making appropriate adjustments will help you stay financially secure.

If you have any additional questions, I would be happy to chat with you anytime! Please don’t hesitate to reach out if you want to discuss the impact on your mortgage, or how to make changes.

Angela Calla is an 18-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.