Understanding Reverse Mortgages

General Angela Calla 19 Dec

A Comprehensive Guide to Understanding Reverse Mortgages in Canada: Designing Your Ideal Lifestyle and Debunking Myths
Introduction:

As Canadians embrace longer life expectancies and evolving financial goals, reverse mortgages have gained prominence as a versatile financial tool. In this comprehensive guide, we’ll explore the intricacies of reverse mortgages in Canada, shedding light on how they can be used to design your ideal lifestyle. Additionally, we’ll debunk common myths surrounding reverse mortgages, providing you with accurate information to make informed decisions about this unique financial solution.

Understanding Reverse Mortgages in Canada
1. What is a Reverse Mortgage?
A reverse mortgage is a financial product designed for Canadian homeowners aged 55 and older. It allows homeowners to convert a portion of their home equity into tax-free cash without selling their property. Unlike traditional mortgages, there are no monthly mortgage payments required.

2. How Does It Work?
The homeowner receives funds either as a lump sum, regular payments, or a combination of both. The loan, along with accumulated interest, is repaid when the homeowner sells the home, moves out, or passes away. The remaining equity belongs to the homeowner or their estate.

Designing Your Ideal Lifestyle with a Reverse Mortgage
1. Supplementing Retirement Income:
A reverse mortgage can provide a steady stream of income to supplement retirement funds, enabling homeowners to maintain their desired lifestyle.

2. Home Renovations or Upgrades:
Accessing home equity allows homeowners to fund renovations or modifications, making their living space more comfortable and suitable for aging in place.

3. Debt Consolidation:
Reverse mortgages can be used to pay off existing debts, reducing financial stress and improving overall financial well-being.

4. Travel and Leisure:
Enjoying your retirement to the fullest is possible with a reverse mortgage. Whether it’s travel, hobbies, or leisure activities, accessing home equity provides the financial flexibility to pursue your passions.

Debunking Common Myths about Reverse Mortgages
1. Myth: You Lose Ownership of Your Home with a Reverse Mortgage
Reality: Homeownership remains with the borrower. The homeowner retains title and can continue to live in the home as long as it remains their primary residence.

2. Myth: You Can Owe More Than Your Home’s Value
Reality: Canadian reverse mortgages are non-recourse loans. This means that neither the homeowner nor their estate will be responsible for repaying more than the appraised value of the home.

3. Myth: Reverse Mortgages are a Last Resort for Financial Distress
Reality: Reverse mortgages are a financial planning tool and can be used proactively to enhance retirement lifestyle, manage finances, and meet specific goals.

4. Myth: You Can Be Forced to Move Out of Your Home
Reality: As long as the homeowner maintains the property, pays property taxes, and keeps up with home insurance, they can live in their home indefinitely, even with a reverse mortgage.

Conclusion:
Understanding reverse mortgages in Canada is essential for designing a lifestyle that aligns with your retirement goals. By debunking common myths and exploring the versatile uses of reverse mortgages, you can make informed decisions that enhance your financial well-being. As you consider this financial option, consulting with professionals like the Angela Calla Mortgage Team ensures that you receive personalized advice tailored to your unique situation. With accurate information, you can unlock the potential of reverse mortgages to create your ideal lifestyle in retirement.

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. 

Debunking Canadian Mortgage Myths: What You Shouldn’t Believe

General Angela Calla 19 Dec

Debunking Canadian Mortgage Myths: What You Shouldn’t Believe

Introduction:

In the dynamic landscape of Canadian real estate, misinformation can circulate easily, leading to misconceptions about mortgages. As you embark on your homeownership journey or consider refinancing, it’s crucial to separate fact from fiction. In this blog post, we’ll debunk common myths surrounding Canadian mortgages, empowering you with accurate information to make informed decisions about one of the most significant financial commitments in your life.

Myth 1: You Need a 20% Down Payment to Buy a Home

Reality: Contrary to popular belief, a 20% down payment is not a mandatory requirement to purchase a home in Canada. While a larger down payment can offer advantages, many lenders offer mortgage options with lower down payment requirements. Various government-backed programs and mortgage insurance options cater to buyers with more modest down payments.

Myth 2: Fixed-Rate Mortgages are Always the Best Option

Reality: The choice between fixed and variable-rate mortgages depends on your financial goals and risk tolerance. While fixed-rate mortgages offer stability with predictable payments, variable rates can provide potential savings in certain economic conditions. Understanding your preferences and consulting with a mortgage professional can help you make the right decision based on your unique situation.

Myth 3: Refinancing is Always a Money-Saving Move

Reality: Refinancing can be a valuable tool, but it’s not always a guaranteed money-saving strategy. It’s crucial to assess the costs associated with refinancing, including closing costs and potential penalties. Additionally, understanding your long-term financial goals and the impact of refinancing on your overall mortgage term is essential for making informed decisions.

Myth 4: Your Mortgage Rate Is the Only Factor Influencing Affordability

Reality: While the mortgage rate is a significant factor in determining affordability, it’s not the sole consideration. Other costs, such as property taxes, insurance, and potential maintenance fees, contribute to the overall cost of homeownership. Evaluating the complete financial picture ensures a more accurate understanding of what you can afford.

Myth 5: Paying Off Your Mortgage Early Always Saves Money

Reality: While paying off your mortgage early can save on interest payments, it’s essential to consider other financial priorities. Depending on your overall financial situation, investing in other areas such as retirement savings or education funds may offer better long-term benefits. Assessing your financial goals holistically is crucial for making informed decisions.

Conclusion:

Navigating the Canadian mortgage landscape requires accurate information and a discerning eye to debunk common myths. By separating fact from fiction, you empower yourself with the knowledge needed to make informed decisions about your mortgage. Whether you’re a first-time homebuyer or considering refinancing, consulting with a mortgage professional, like the Angela Calla Mortgage Team, ensures that you have access to expert guidance and personalized advice tailored to your unique financial situation. As you navigate the world of Canadian mortgages, armed with accurate information, you can confidently make choices that align with your financial goals and set the stage for a successful homeownership journey.

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 Mortgage Renewal: What You Need to Know

General Angela Calla 19 Dec

Understanding Mortgage Renewal in Canada

  1. Know Your Renewal Date:

Mark your calendar! Your lender will typically notify you of your mortgage renewal well in advance. It’s crucial to be aware of this date to allow ample time for preparation and decision-making.

 

  1. Assess Your Financial Situation:

Take a closer look at your current financial standing. Consider changes in income, expenses, and any shifts in your long-term financial goals. Understanding your financial situation will influence your decisions during the renewal process.

 

Negotiating Rates:

  1. Research Current Rates:

Before entering negotiations, research the current mortgage rates in the market. This knowledge provides you with a benchmark to gauge the competitiveness of the rates your lender offers during the renewal process.

 

  1. Negotiate with Your Lender:

Don’t hesitate to negotiate with your existing lender. They want to retain your business, and often, they are willing to adjust rates or offer additional benefits to keep you as a customer. Be prepared to leverage your creditworthiness and loyalty to secure favorable terms.

 

Consider Your Options:

  1. Stick with Your Current Lender:

Renewing with your current lender is a straightforward option. However, it’s essential to explore the terms they offer and ensure they align with your financial goals.

 

  1. Shop Around:

Don’t be afraid to explore other lenders in the market. Shopping around allows you to compare rates and terms, potentially leading to a more advantageous mortgage package.

 

Assessing Your Mortgage Needs:

  1. Review Your Mortgage Terms:

Take this opportunity to review your current mortgage terms. Assess whether they still meet your needs or if adjustments are necessary. This could include changes to the length of the mortgage term or considering a switch from a fixed to a variable rate, or vice versa.

 

  1. Consult with a Mortgage Professional:

Seeking advice from mortgage professionals, like the Angela Calla Mortgage Team, can provide valuable insights into market trends and help you make informed decisions about your mortgage renewal.

 

Conclusion:

Canadian mortgage renewal is a pivotal moment in your homeownership journey, and understanding the process is key to making sound financial decisions. From negotiating rates to assessing your financial situation and exploring your options, this guide empowers you to navigate the renewal process with confidence. Whether you choose to renew with your current lender or explore new opportunities in the market, taking a proactive approach ensures that your mortgage aligns with your evolving financial goals. As your mortgage term approaches its end, use this guide to guide you through the renewal process, and secure a mortgage that suits your needs and sets the stage for continued financial success.

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. 

Understanding Mortgage Pre-Approval: Your Key to a Successful Home Purchase

General Angela Calla 19 Dec

Embarking on the journey to homeownership is an exhilarating experience, but it comes with its fair share of financial considerations. One crucial step that can significantly enhance your homebuying journey is obtaining a mortgage pre-approval. In this guide, we’ll demystify the mortgage pre-approval process in Canada, highlighting its importance, providing insights on how to get pre-approved, and showcasing the advantages it offers when you’re ready to shop for your dream home.

 

The Importance of Mortgage Pre-Approval, 1st download our app to be one of the best free tools for Pre- Qualification https://www.dlcapp.ca/app/angela-calla?lang=en

  1. Know Your Budget:

Mortgage pre-approval gives you a clear understanding of how much you can afford to spend on a home. This knowledge ensures that you focus your search on properties within your budget, preventing wasted time on homes that may be out of financial reach.

 

  1. Increased Negotiating Power:

Sellers are often more inclined to negotiate with buyers who have a mortgage pre-approval. It demonstrates to the seller that you are a serious and qualified buyer, increasing your chances of securing the property.

 

  1. Avoid Disappointment:

Imagine finding your dream home only to realize it’s beyond your financial means. Mortgage pre-approval prevents this heartbreak by setting realistic expectations and allowing you to explore homes within your price range.

 

How to Get Pre-Approved for a Mortgage

  1. Gather Financial Documents:

Prepare key financial documents, including proof of income, employment verification, credit history, and information about your debts and assets. Lenders will use this information to assess your financial stability.

 

 

  1. Submit an Application:

Fill out a mortgage pre-approval application with your chosen mortgage broker. Be thorough and accurate in providing the required information. The more detailed and precise your application, the smoother the pre-approval process.

 

3. Wait for Approval:

Once your application is submitted, the lender will assess your financial situation and creditworthiness. If approved, you will receive a pre-approval letter outlining the maximum loan amount you qualify for.

 

Advantages of Mortgage Pre-Approval When Shopping for Your Dream Home

  1. Focused Home Search:

Armed with a pre-approval, you can focus your home search on properties within your budget, saving time and ensuring a more efficient process.

 

  1. Confidence in Bidding:

When you find the perfect home, you can confidently make an offer, knowing that you have already secured financing. This positions you as a strong and reliable buyer in the eyes of the seller.

 

  1. Quick Closing:

Pre-approval expedites the mortgage application process when you find the right property, allowing for a quicker closing timeline. This can be advantageous in competitive real estate markets.

 

Conclusion:

In the dynamic world of Canadian real estate, mortgage pre-approval stands out as a key tool for savvy homebuyers. By understanding its importance, following the steps to obtain pre-approval, and leveraging its advantages in your home search, you set the stage for a successful and stress-free homebuying journey. Consider reaching out to professionals like the Angela Calla Mortgage Team to guide you through the pre-approval process and ensure that you are well-prepared to turn your homeownership dreams into reality. With mortgage pre-approval as your key, unlock the doors to your future home with confidence and peace of mind.

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. 

Demystifying Canadian Mortgage Rates: A Comprehensive Guide

General Angela Calla 19 Dec

Decoding the Factors Behind Canadian Mortgage Rates

  1. Economic Factors:

Mortgage rates in Canada are closely tied to the economic landscape. Factors such as inflation rates, unemployment figures, and overall economic health play a pivotal role. The Bank of Canada monitors these indicators to make decisions on the country’s benchmark interest rate, influencing mortgage rates. Fixed rates are tied to the Bond Market.

  1. Bank of Canada’s Influence:

The Bank of Canada sets the benchmark interest rate, which serves as a reference point for lenders when determining their own rates. Changes in the benchmark rate can lead to adjustments in mortgage rates, affecting borrowers across the country.

  1. Government Policy:

Government policies and regulations, including mortgage stress tests and lending restrictions, can impact the availability and affordability of mortgages. Staying informed about these policies is crucial for prospective homeowners.

Strategies for Securing the Best Mortgage Rates

  1. Maintain a Strong Credit Score:

Your credit score is a key factor in determining the interest rate you’ll be offered. A higher credit score typically translates to lower interest rates. Regularly check and improve your credit score to secure more favorable mortgage terms.

  1. Comparison Shopping:

Different lenders may offer varying mortgage rates and terms. It’s essential to shop around, comparing rates and negotiating with lenders to secure the best deal. The mortgage market is competitive, and informed borrowers can leverage this to their advantage using a mortgage professional who has the borrowers interest at heart, any one lender only sells there own products giving them a sales bias.

  1. Use a Mortgage Broker:

Mortgage brokers, like the Angela Calla Mortgage Team, can be invaluable in navigating the mortgage market. They have access to a network of lenders and can help you find the best rates based on your financial situation and goals. They shop without bias, protecting your credit score giving you the power of choice.

Empowering Yourself with The Mortgage Code

In your journey to understand and secure the best Canadian mortgage rates, a valuable resource awaits – “The Mortgage Code” by Angela Calla. This insightful book, available on Amazon, offers practical advice and insider tips from Angela Calla, a renowned mortgage expert. Whether you’re a first-time homebuyer or a seasoned homeowner, “The Mortgage Code” is a comprehensive guide that complements your knowledge, providing insights into the Canadian mortgage market.

Conclusion:

Demystifying Canadian mortgage rates is a crucial step in making informed decisions about your homeownership journey. By understanding the factors influencing rates and implementing strategic approaches, you can position yourself to secure the best possible mortgage terms. Additionally, the Angela Calla Mortgage Team and “The Mortgage Code” book serve as valuable allies in your quest for financial empowerment. As you navigate the Canadian mortgage market, empower yourself with knowledge and trusted resources to achieve your homeownership goals. Buy the book on Amazon or Audible here  https://www.amazon.ca/Mortgage-Code-Helping-Property-Mistakes-ebook/dp/B07HFHR8TV or reach out for personalized mortgage assistance 604-802-3983 or 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. 

First-Time Homebuyer’s Guide: Navigating the Canadian Real Estate Landscape

General Angela Calla 19 Dec

Embarking on the journey to homeownership is an exciting and significant step. For first-time homebuyers in Canada, navigating the real estate landscape can be both thrilling and daunting. In this comprehensive guide, we’ll provide a roadmap tailored to first-time buyers, covering crucial topics such as down payments, government incentives, and homebuyer programs. This guide aims to be your go-to resource, offering valuable insights to ensure a smooth and informed entry into the Canadian real estate market.

Understanding Down Payments

  1. The Basics:

As a first-time homebuyer in Canada, understanding down payments is fundamental. In most cases, a minimum down payment is required, typically ranging from 5% to 20% of the home’s purchase price. The larger the down payment, the lower your mortgage loan amount and monthly payments.

  1. Saving Strategies:

Start saving early for your down payment. Consider creating a dedicated savings account, exploring government-sponsored savings plans, or using financial windfalls like tax refunds or bonuses to boost your down payment fund.

Exploring Government Incentives

  1. First-Time Home Buyer Incentive (FTHBI):

The FTHBI is a federal program designed to assist first-time homebuyers by reducing their monthly mortgage payments. Eligible buyers can receive a shared-equity loan from the government, lowering the overall cost of homeownership.

  1. Home Buyers’ Plan (HBP):

The HBP allows first-time buyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) to use towards a home purchase. This program provides a tax-friendly way to fund your down payment.

  1. First Time Home Savers (FHSA):

The First Time Home Savers account The First Home Savings Account (FHSA) is specifically designed to help first-time homebuyers save for their down payment without having to pay taxes on the interest earned on their savings.

This means that the interest earned on the savings in the account is not taxed, nor are withdrawals from the account. Plus, since your contributions to this account are not taxed, your money will have the opportunity to grow faster in an FHSA than a traditional savings account. More on this new for 2023 here https://angelacalla.ca/general/first-home-savings-account-fhsa/

Navigating Homebuyer Programs

  1. Land Transfer Tax Rebates:

Be aware of provincial land transfer tax rebates available for first-time homebuyers. These rebates can significantly reduce the upfront costs associated with purchasing a home.

  1. Mortgage Insurance Options:

Explore mortgage insurance options, especially if your down payment is less than 20%. Mortgage insurance protects lenders in case of default but also provides an opportunity for first-time buyers to enter the market with a lower down payment.

  1. Download our app to be pre qualified in seconds learning payment comfort and calculation closing costs https://www.dlcapp.ca/app/angela-calla?lang=en

The Importance of Professional Guidance

  1. Mortgage Brokers:

Consider enlisting the help of a mortgage broker, such as the Angela Calla Mortgage Team. Mortgage brokers have access to a wide range of lenders and can help you find the most suitable mortgage product for your unique financial situation.

  1. Real Estate Agents:

Work with a qualified real estate agent who specializes in first-time homebuyers. They can guide you through the process, help you find suitable properties, and negotiate on your behalf.

Conclusion:

Navigating the Canadian real estate landscape as a first-time homebuyer requires a thoughtful approach and a comprehensive understanding of key factors. By mastering the essentials of down payments, taking advantage of government incentives and homebuyer programs, and seeking professional guidance, you can embark on your homeownership journey with confidence. Remember, the Angela Calla Mortgage Team is here to support you throughout the process, ensuring that your first home purchase is a successful and rewarding experience. As you take your first steps into the world of real estate, use this guide as your compass, and embrace the exciting adventure of homeownership in Canada.

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. 

 

Bank of Canada Holds The Overnight Policy Rate Steady at 5% For the Third Consecutive Meeting

General Angela Calla 15 Dec

The Bank of Canada Held Rates Steady and Took A More Neutral Tone

It was widely expected that the Bank of Canada would maintain its key policy rate at 5% for the third consecutive time. It will continue to sell government securities (quantitative tightening) to normalize its balance sheet. Market participants weighed and measured each word of the BoC press release and assessed that the Bank took a less hawkish stance.

This time, the release said, “Higher interest rates are clearly restraining spending: consumption growth in the last two quarters was close to zero, and business investment has been volatile but essentially flat over the past year. Exports and inventory adjustment subtracted from GDP growth in the third quarter, while government spending and new home construction provided a boost. The labour market continues to ease: job creation has been slower than labour force growth, job vacancies have declined further, and the unemployment rate has risen modestly. Even so, wages are still rising by 4-5%. Overall, these data and indicators for the fourth quarter suggest the economy is no longer in excess demand.”

 

 

 

 

At the prior meeting in late October, the Bank said that the labour market remained “on the tight side” but acknowledged today that it was loosening. Indeed, the October Monetary Policy Report suggested that the inflation rate would not hit its 2% target level until late 2025.

Today, the tone was much more optimistic, suggesting that policymakers are increasingly confident interest rates are restrictive enough to bring inflation back to the 2% target. Still, Bank officials want to see more progress on core inflation before it begins to ease. It said, “The Bank’s preferred measures of core inflation have been around 3½-4%, with the October data coming in towards the lower end of this range.”

The central bank focuses on “the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour” and remains resolute in restoring price stability.

Bottom Line

Bond yields peaked in early October and have fallen by nearly 100 basis points. This has led to reductions in fixed mortgage rates; however, those cuts have been far less than historical experience would have suggested, given the rally in 5-year government bonds.

Cuts in variable mortgage rates await a reduction in the overnight policy rate, which triggers a commensurate decline in the prime rate, which is currently stuck at 7.2%. I expect the BoC to begin cutting the policy rate by the middle of next year, taking it down a full percentage point to 4% by yearend

(Article courtesy of Dr. Sherry Cooper, Cheif 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. 

Canadian Housing Markets Bottoming

General Angela Calla 14 Dec

Housing Markets Prepare For A 2024 Rebound

Before we get into the details of the November housing market data released this morning by the Canadian Real Estate Association (CREA), big positive news for housing occurred yesterday. The US Federal Reserve gave its clearest signal yet that its historic policy tightening campaign is over by projecting more aggressive interest-rate cuts in 2024. This ignited one of the biggest post-meeting rallies in bonds and stocks in recent memory. Global shares spiked higher. Short-term Treasuries posted their best day since March, while world currencies surged against the US dollar and corporate bonds rallied. Canadian markets followed suit. If anything, Canada is far more interest-sensitive than the US, and our economy is far weaker.

As the charts below show, monthly mortgage payments relative to after-tax income are far higher in Canada than in the US, even more so given the tax deductibility of mortgage interest and property taxes south of the border. The US economy grew by a whopping 5.2% in the third quarter compared to a decline of 1.1% in Canada.  Therefore, the Bank of Canada will likely cut interest rates sooner and more aggressively than in the US, improving housing affordability.

 

 

 

 

 

The CREA data for November showed a bottoming housing market. Home sales recorded over Canadian MLS® Systems edged down by 0.9% from October to November 2023, the smallest decline since July.

New Listings

Sellers move to the sidelines as well. The number of newly listed homes fell 1.8% month-over-month in November. This followed a 2.2% decline in October.

With new listings down by more than sales in November, the national sales-to-new listings ratio tightened slightly to 49.8% compared to 49.4% in October. It was the first time this measure has increased since April. The long-term average for the national sales-to-new listings ratio is 55.1%.

There were 4.2 months of inventory nationally at the end of November 2023, up only slightly from 4.1 months at the end of October. As such, this measure also looks to be stabilizing and is still almost a full month below its long-term average of nearly five months of inventory.

The second chart below shows that we are definitely in a buyers’ market.

 

 

 

 

 

 

 

Home Prices

The Aggregate Composite MLS® Home Price Index (HPI) declined by 1.1% month-over-month in November 2023, reflecting softer market conditions since the end of the summer. Prices often react with a slight lag, so it will be interesting to see if month-over-month declines get smaller or stop getting larger in December in response to a stabilizing demand-supply balance.

While price declines remain mainly an Ontario phenomenon, home prices are now softening in the Fraser Valley, Winnipeg, and Halifax. Elsewhere in Canada, prices are mostly holding firm or, in some cases (Alberta, Saskatchewan, New Brunswick, Price Edward Island, Newfoundland and Labrador), continuing to climb. The Aggregate Composite MLS® HPI was up 0.6% on a year-over-year basis.

Bottom Line

The Bank of Canada policymakers will meet again on January 24th. While it will likely be several months before the Bank begins to cut the policy rate, market-driven interest rates have fallen sharply. Fixed mortgage rates have also come down but more moderately. I expect to start easing monetary policy in the spring, taking the overnight rate down by roughly 100 bps by yearend 2024. Housing activity will strengthen in 2024 and 2025, although the economy will be burdened by a substantial rise in monthly mortgage payments as many renewals or refinancing’s rise, peaking in 2026.

(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. 

December Newsletter

General Angela Calla 7 Dec

Welcome to the December issue of my monthly newsletter!

As we get closer to the end of the year, we have some special New Year resolutions for your home! Plus, check out some of my favourite holiday desserts. In addition, don’t miss the latest economic insights direct from Dr. Sherry Cooper!

New Year Resolutions for Your Home

The New Year is approaching! While we are in the spirit of goal planning and setting our intentions for the coming months, don’t forget about your home!

There are several things you can do to make your home and finances work for you in 2024:

Review Your Home Budget (or make one!): Money can be a stressful subject, but creating a home budget and keeping it updated whether annually, bi-annually, or monthly can truly help you get a handle on your cash flow and what you are spending on. An annual review of your budget at minimum to account for changes in wages, loan payments, expenses and more is a great way to get 2024 off to a balanced start! This is also a good opportunity to think about future renovations, vacations or expenses so you can start a savings fund to meet your goals!

 Embrace Minimalism: Heading into January is a great time to take stock of your home and life. For many people, embracing minimalism has allowed them to declutter their minds and increase clarity to focus on what matters in life. Clearing out old furniture, clothes, or anything that doesn’t bring you peace, is a great way to live in the moment and align your home.

 Cut Your Carbon Footprint: Your home is a great place to cut energy! Everything from switching off the lights when you leave a room to dialing down your air conditioner and heating, to installing LED bulbs and energy-saving showerheads or toilets, can help you save in the long run and ensure your home is more energy-efficient for the New Year!

Get Growing: Got a green thumb or simply looking for a new hobby? Consider starting a garden at home! Whether you place large planters in your backyard, some pots on the patio, or grow some herbs in your kitchen, this can be a great way to nurture your mind and body! Plus, it adds a little extra life to your home!

Improve Your Work/Life Balance: If you are still working at home and haven’t yet nailed down a dedicated space for your office, 2024 is your year! Having a separate space for your work versus your life can help you with decluttering your brain and maximizing your time and focus both on the clock and off.

Make the Most of Your Mortgage Renewal: As discussed in our last issue, your mortgage renewal is a great opportunity to make your home put in the work for you! With lots of renewals coming up in 2024, now is the time to start thinking ahead! Choose to consolidate debt, utilize home equity, get a better rate, and more at renewal time.

 Contribute to Your RRSP: Don’t forget — February 29, 2024, is the last day to make RRSP contributions for the 2023 tax year! Before your RRSP deadline, there are a few things to consider to help you get a jump start in planning for the future and increasing your peace of mind: should you invest in an RRSP or focus on paying down your mortgage? Is a debt consolidation mortgage right for you? Should you consider the Home Buyers’ Plan to help fund your down payment on your first home?

Favourite Holiday Desserts

The holidays are a wonderful time of year for the merriment, music, lights… and treats!

You’ll need to throw out the scale for this list of scrumptious holiday dessert ideas.

Gingerbread Cookies: Did you know? The oldest recorded gingerbread recipe, dating to the 16th century, is kept in the Germanic National Museum in Nuremberg! A tried-and-true classic for a reason, gingerbread is a particularly festive go-to! Whether you create gingerbread men or a gingerbread house – or a whole town (we won’t judge!) – you need the right recipe!

CLICK HERE TO DOWNLOAD THE RECIPE CARD!

Nanaimo Bars: Over the years, this delicious treat has gone by many names… The first recipe originated in the 1952 edition of the Women’s Auxiliary Nanaimo Hospital Cookbook where it was simply named “chocolate square”. A similar recipe was later published in a 1953 edition of the Edith Adams’ Cookbook with the name “Nanaimo Bar”. The recipe clipping still hangs in the Nanaimo Museum! A no-bake dessert bar, this mouth-watering treat consists of three main layers: graham wafer crumb and shredded coconut for the bottom, a custard-flavored butter icing in the middle, and a chocolate ganache on top.

CLICK HERE TO DOWNLOAD THE RECIPE CARD!

Peppermint Fudge: Originating in the 19th century, fudge is not necessarily new… but with so many additions to flavourings, it never gets old! This season, try one of our favourites – peppermint fudge! Easy to make and waiting to be enjoyed.

 CLICK HERE TO DOWNLOAD THE RECIPE CARD!

Peanut Brittle: Brittle is thought to be one of the first candies ever made… and there is a lot of confusion around how it came to be. Some claim it happened by accident as a New England woman was making taffy and accidentally added baking soda in 1890! Another theory dates brittle as far back as the Celts where it was enjoyed as a traditional Celtic dessert, making its way from Europe to America! Still today, peanut brittle continues to stand the test of time as a favored treat.

 CLICK HERE TO DOWNLOAD THE RECIPE CARD!

Economic Insights from Dr. Sherry Cooper

As we move into yearend, we have every reason to believe that the economy has slowed and inflation, while still above target, has dropped significantly. But slower inflation does not mean falling prices in most markets. Yes, gasoline prices are down, and food inflation has slowed, but the purchasing power of households has not improved.

Consumer confidence is down as many households fear their mortgage renewals, where rising monthly payments will dig even deeper into their discretionary income.

Mortgage arrears are still at historical lows, but credit card and auto loan delinquencies are rising. Housing markets have slowed considerably, even as lenders cut their fixed mortgage loan rates. Declines in variable-rate loans generally await an easing in monetary policy by the Bank of Canada, which is still likely at least six months away.

The good news is that interest rates have likely peaked. So far, the economy is on a glide path for a ‘softish’ landing. I doubt we will see two consecutive quarters of negative growth. And, if we do, the central bank will respond sooner with rate cuts.

The fiscal authorities’ hands are tied. Many accuse Ottawa of increasing budgetary red ink too quickly over the past eight years, especially during the pandemic. Now that market-determined interest rates have risen sharply, the debt financing costs are spiking. The Liberals’ popularity is waning, and while business is calling for investment tax credits and everyone wants more affordable housing, the feds can only marginally affect these issues, given budgetary and political constraints.

The latest gimmick is to reduce short-term rentals by restricting Airbnb properties in some ways, but that will again have a meagre impact. Encouraging construction with GST elimination and cheaper credit is helpful. Still, even if they do lead to 30,000 new rental properties, that’s a drop in the bucket when planned permanent immigration is slated for 500,000 people per year.

The real rebound in economic activity is coming when the BoC signals it will cut the overnight policy rate. In the meantime, it is now a buyers’ market in many localities as home prices decline. The spring housing market could show a meaningful pickup in anticipation of lower rates and more housing supply. Motivated sellers will be out there, and buyers can pre-approve and take their time finding the right fit. The multiple-bidding wars are over. The housing market will lead the economy upward next year.

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. 

Difference between Adjustable Rate Mortgage and Variable Rate Mortgage

General Angela Calla 4 Dec

Do you know the difference between an ARM and VRM mortgage?

An ARM (Adjustable Rate Mortgage) changes your payments when the prime rate moves, offering potential cash flow benefits when rates go down. On the other hand, VRM (Variable Rate Mortgage) maintains fixed payments despite changes in the prime rate, keeping your payments stable throughout the term. In our fluctuating interest rate environment, it’s crucial to choose the right one for your financial plan.

In 2023, many Canadians reached a trigger rate when there VRM did not cover the interest of the mortgage and were forced to pay a lump sum down, switch to a fixed rate or take out another loan. Knowing this difference will help in planning moving forward.

With our everchanging interest rate environment you want to ensure you have the right one for your financial mortgage plan! One allows you to take advantage of rates going down with improved cashflow , while the other keeps the same payment. Reach out to us directly to ensure you always have the best mortgage for you angela@countoncalla.ca 604-802-3983

Click the video to hear more!

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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