Q3 GDP Weaker Than Expected Paving The Way For Future Rate Cuts

General Angela Calla 30 Nov

The Table Is Set For Rate Cuts In 2024

The Canadian economy weakened far more than expected in the third quarter, down 1.1% annually. However, the Q2 figures were revised up significantly from a 0.2% decline to a rise of 1.4%. Such are the vagaries of economic data. The Canadian economy is contracting despite the positive impetus of rapid population growth. Household consumer spending flatlined, and the savings rate rose, confirming that the central bank’s aggressive interest-rate hikes are doing their job to slow economic activity.

Statistics Canada also released preliminary data suggesting that GDP grew 0.2% in October, boosted by residential construction and increased oil and gas extraction and retail trade, after the better-than-expected 0.1% expansion in September.

The economic contraction was broadly based. Household spending hasn’t been this weak since 2009, except during the pandemic lockdowns. In addition, business investment was particularly feeble, down 14.4% for business equipment and -7.7% for nonresidential construction. Exports also declined 5.1% over the same period.  Investment in residential construction rose 8.3% annualized, the first increase since the beginning of 2022.

Job vacancy data, also released today, posted another decline, confirming that the economy has weakened and excess demand has been eliminated. On a per capita basis, Canada’s economy has contracted for the second consecutive quarter.

Tomorrow, Statistics Canada will release the labour market report for November.

 

Bottom Line

Today’s release is welcome news for the Bank of Canada. Tiff Macklem said last week that the Bank’s interest rate hikes were doing their job to return inflation to its 2% target. The Governing Council meets once again on December 6th. We expect a more dovish press release suggesting that the policy rate has likely peaked. Market-driven interest rates have fallen sharply since early October, taking fixed mortgage rates down significantly (see chart below).

Traders in overnight swaps are betting the Bank of Canada will loosen monetary policy as early as April 2024, little changed from before the release. I expect that the Bank of Canada will gradually cut interest rates beginning in the second quarter of next year, taking the overnight rate down 200 basis points to 3.0% by year’s end.

 

 

(Article courtesy of Der. Sherry Cooper, Chief Economist, DLC)

 

Angela Calla is an 19-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 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 Mortgage as a Retirement Tool

General Angela Calla 28 Nov

Reverse Mortgage is a valuable retirement tool.

You want to stay in the home you worked so hard to pay for, the home you raised your family in.

You are not ready to move to a retirement home.

You could use additional funds to:

–      Pay off debts

–      Handle unexpected expenses

–      Help children or grandchildren

–      Make a special trip or purchase

–      Improve day-to-day standard of living

With a reverse mortgage you can access up to 55% equity in your home and use however you wish. They are easy to qualify for and have no monthly payments.

Here is an example of how a reverse mortgage can help…..

Whitney was introduced to us to explore her options. She is receiving her government pensions, and she is widowed. She doesn’t have any other income coming in and is finding things very expensive. She would love to gift equity to her grandchildren to help with their education, she would like to take a few trips with friends, and make sure she is set up for any unexpected expenses. She is also not ready to move. She has heard negative things about reverse mortgages, she wants to leave the equity to her children as an inheritance. She set up an appointment with our team to find out more. We had a good conversation with her, explained how they work, had a great meeting with her and her children. After understanding her options and how the reverse mortgage works, she decided to proceed. We set her up and now she is living her life like she never dreamed was possible and with much more freedom.

We are free to work with. Expert guidance going into our 20th year. Located in Port Coquitlam, BC, helping individuals throughout BC and across Canada.

We look forward to hearing from you!

 

Angela Calla is an 19-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 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. 

BC Housing Secondary Suite Incentive Program

General Angela Calla 27 Nov

What is the Secondary Suite Incentive Program?

The Secondary Suite Incentive Program will help homeowners create affordable housing in their communities. The program will provide money to help homeowners create a new secondary suite on their property to be rented out for below market value.

Homeowners who qualify will receive up to 50% of the cost of renovations, up to a maximum of $40,000. The program will provide a rebate in the form of a forgivable loan—a loan that does not need to be repaid if the homeowner follows the terms of the program.

For the loan to be forgiven, the new unit must be located on the same property where the homeowner lives and must be rented out at below market rates, set by BC Housing, for at least five years.

Check out more details here: BC Housing

Here is a simplified fact sheet : Fact Sheet

 

Angela Calla is an 19-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 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. 

CKNW Apex Wrestling featuring Angela Calla Radio Commerical

General Angela Calla 23 Nov

 

 

Angela Calla is an 19-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 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. 

Angela Calla on the Jill Bennett Show

General Angela Calla 23 Nov

 

Angela Calla is an 19-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 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. 

Stress Test Changes

General Angela Calla 22 Nov

What is a stress test?

You may have heard the term ‘stress test’ but didn’t really know what that means.  Essentially, in June of 2021 the federal government required that any mortgage qualify at a rate of 5.25% or 2% higher than the contract value with the attempt to protect borrowers if rates increase.  With rates well above the 5.25%, borrowers are now being stress tested at current rates, plus 2% which in most cases if 8% or higher.

 

What’s the change?

The update will remove the stress test requirement for insured mortgage renewals only, including in cases where someone is switching lenders.

 

How does that make things different for borrowers?

Currently, if you’re worried about not being able to pass the stress test, you may feel pressure to stay with your existing lender, even if they don’t have the most competitive rates.

 

Don’t make this mistake, lenders are offering higher rates and not great terms upon renewal and in our ever-changing market that is the difference in your wealth protection and creation as our market shift.

Need more information, reach out to us at callateam@countoncalla.ca.

 

Angela Calla is an 19-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 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. 

2023 Fall Economic Statement

General Angela Calla 22 Nov

2023 Fall Economic Statement

Angela Calla is an 19-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 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. 

Mortgage Renewal Review

General Angela Calla 22 Nov

Friends don’t let friends renew their mortgage without talking to our team first!

One of our clients was out for a hike with a friend, and of course they were talking mortgages, inflation, and family.  In this discussion, they discussed how long it took for them to get an approval from their bank and how high the rate appeared to be.

They made an introduction to us, and we quickly were able to see this client qualified for a better rate.

In summary, from that simple review they saved $169 in monthly cashflow totaling $10,140.00 over the next 5 years of money in your pocket.  This change increased the amount paid to the principal by $3,868 and reduced the interest paid by $14,048.00.  This is a swing of saving of $17,916 over the term!

When we get the opportunity to review any mortgage, you can count on, unbiased advice, options, privacy, credit protection and if rates go down prior to funding, we automatically review every file before closing to ensure the lowest cost of borrowing for your profile. If its best for you to stay with your existing lender or plan, that is exactly what we reinforce for you.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Angela Calla is an 19-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 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. 

 

Apex Wrestling Event with SHARE – December 8, 2023

General Angela Calla 22 Nov

Apex Wrestling Event Partners with Share Society to Tackle Hunger in the Community.

Renowned Mortgage Expert Angela Calla Joins as Anthem Singer.

Apex Wrestling, a leading name in the local wrestling scene, is proud to announce its upcoming wrestling event in collaboration with SHARE Family & Community Services Society (SHARE), a non-profit organization dedicated to supporting vulnerable members of the community. This family-friendly extravaganza, scheduled to take place at the new home ring at Hastings Race Track and Casino, promises an evening of thrilling matches and entertainment for all.

Apex Wrestling is not only committed to providing top-notch entertainment but also to giving back to the community. Partnering with SHARE, partial proceeds from this event will go towards supporting the local food bank, helping families in need during these challenging times.

Adding to the excitement of the evening is the inclusion of Angela Calla, a well-known mortgage expert, author, financial influencer, and business leader. Angela will be lending her vocal talents as the Anthem Singer for the event, adding a touch of elegance and flair to the proceedings.

“I’m thrilled to be a part of this incredible event that not only brings joy to wrestling fans but also contributes to a great cause. It’s essential for us to come together as a community and support those in need, and I’m honored to play a role in that effort,” said Angela Calla.

The wrestling card for the evening will feature exciting matches, including performances by popular local wrestlers such as Tri-Cities Daddy Red DeNero and during the day as Mike Arbiot of The Fountainhead Network. These athletes are known for their skill, charisma, and ability to put on an unforgettable show for fans of all ages.

“We are excited about the new venue at Hastings Race Track and Casino. It provides a fantastic setting for our wrestlers to showcase their talents, and we’re grateful for the opportunity to partner with Share Society to give back to the community,” said Gerry Gionco , President of Apex Wrestling.

Details of the Apex Wrestling Event:
Date: Dec 8th 2023
Time: 7pm
Venue: Hastings Race Track and Casino
Tickets: Cash Payment at the Door. $20 minimum donation per person

Don’t miss this chance to witness an action-packed night of wrestling while supporting a worthy cause. Join Apex Wrestling, SHARE Society, and Angela Calla for an unforgettable evening that combines sports entertainment with community spirit.

For information on SHARE please contact claire.maclean@sharesociety.ca or 604-540-9161 ext 133 or visit www.sharesociety.ca

For media inquiries, interviews, or additional information, please contact:
Angela Calla 778-831-0200 or angela@countoncalla.ca

@angelacallamortgageteam
@canadianapexwrestling
@sharesociety
@hastingsraces

Angela Calla
Mortgage Expert & Author
______________________________________________
The Angela Calla Team has been helping borrowers obtain the best mortgage for over 19 years, proudly hosts “The Mortgage Show” on CKNW and is the best selling author of “The Mortgage Code” – a passion project that donates all proceeds to the Tri-Cities Mom Group, supporting mothers and families in our community.

 

Angela Calla is an 19-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 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. 

Canadian Inflation Fell to 3.1% (y/y) In October, Ensuring the BoC Holds Rates Steady

General Angela Calla 22 Nov

Good News On the Inflation Front Suggests Policy Rates Have Peaked

Today’s inflation report showed a continued improvement, mainly due to falling year-over-year (y/y) gasoline prices. The October Consumer Price Index (CPI) rose 3.1% y/y, down from the 3.8% rise in September. There were no surprises here, so markets moved little on the news. Excluding gasoline, the CPI rose 3.6% in October, compared to 3.7% the month before.

The most significant contributors to inflation remain mortgage interest costs, food purchased at stores, and rent.
Canadians continued to feel the impact of rising rent prices, which grew faster (y/y) in October (+8.2%) than in September (+7.3%). The national increase reflected acceleration across most provinces. The most significant increases in rent prices were seen in Nova Scotia (+14.6%), Alberta (+9.9%), British Columbia (+9.1%) and Quebec (+9.1%).
Property taxes and other special charges, priced annually in October, rose 4.9% yearly, compared with a 3.6% increase in October 2022. The national increase in October 2023 was the largest since October 1992, with homeowners paying more in all but one province, as municipalities required larger budgets to cover rising costs. Property taxes in Manitoba (-0.3%) declined for the third consecutive year, mainly due to reduced provincial education tax.

While goods prices decelerated by -1.6% as prices at the pump fell, prices for services rose 4.6% last month, primarily driven by higher prices for travel tours, rent and property taxes.

While grocery prices remained elevated, they also continued their trend of slower year-over-year growth, with a 5.4% increase in October following a 5.8% gain in September. While deceleration continued to be broad-based, fresh vegetables (+5.0%) contributed the most to the slowdown.

Excluding food and energy, inflation fell to 2.7% in October, down a tick from the September reading. Two other inflation measures closely tracked by the Bank of Canada–the so-called trim and median core rates–also eased, averaging 3.6% from an upwardly revised 3.8% a month earlier.

Bottom Line

According to Bloomberg calculations, another critical measure, a three-month moving average of underlying price pressures, fell to an annualized pace of 2.96% from 3.67% a month earlier. It’s an important metric because Bank of Canada Governor Tiff Macklem has said policymakers are tracking it closely to understand inflation trends.

Today’s news shows that tighter monetary policy is working to bring down the inflation rate. In its Monetary Policy Report last month, the Bank of Canada expected the CPI to average 3.5% through mid-2024. Cutting its economic forecast, the Bank forecasted it would hit its 2% inflation target in the second half of 2025.

Given today’s data and the likely significant slowdown in Q3 GDP growth, released on November 30, and the Labour Force Survey for November the following day, policy rates have peaked. Governor Tiff Macklem will give a speech on the cost of high inflation in New Brunswick tomorrow, and the subsequent decision date for the Governing Council is December 6th. The Bank’s inflation-chopping rhetoric may be relatively hawkish, but the expectation of rate cuts could spur the spring housing market.

The economists at BMO have pointed out that “three provinces now have an inflation rate below 2%, while only three are above 3%, so much of the country is already seeing serious signs of stabilization. (Unfortunately, the two largest provinces have the fastest inflation rates—Quebec at 4.2% and Ontario at 3.3%).” There is no need for the Bank to raise rates again, and they could begin to cut interest rates in the second quarter of next year.

(Article courtesy of Dr. Sherry Cooper, Chief Economist, Dominion Lending Centres)

Angela Calla is an 19-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 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. 

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