Essential Tips to Avoid Common Mistakes When Buying a Presale Property in BC

General Angela Calla 25 Jan

As a valued member of our community, we want to ensure that you make informed decisions when it comes to purchasing presale properties in British Columbia. Buying a presale property can be an exciting investment opportunity, but it’s crucial to navigate the process wisely to avoid potential pitfalls. In this article, we’ll outline some common mistakes to steer clear of when entering the presale market in BC.

 

Neglecting Due Diligence:

One of the most significant mistakes buyers make is not conducting thorough research. Before committing to a presale property, investigate the developer’s reputation, project timeline, and financial stability. Verify their past projects, reviews, and track record to gain confidence in your investment. You absolutely need to use your own realtor (independent of the developer and its associates) speak with your mortgage broker, financial planner, and lawyer Consideration for what will happen and what the back up plan is in the event of

– income change

-relationship or health status change

-potential resale restrictions,

-where the deposit and closing costs are coming from, there cost and risk in value for when the closing date is or can be delayed.

Its essential to not only look at your personal life circumstances, but what you will do if the market changes and more money is demanded due to shift in market conditions or time for completion.

 

Ignoring Market Trends:

Keep a close eye on the current real estate market trends in BC. Failing to understand market conditions can lead to overpaying for a property or investing in an area that may not yield the expected returns. Consult with real estate experts, review market reports, and stay informed about economic factors influencing property values. The costliest mistake we see if clients going to a developer directly, who is biased to sell there product they are NOT there to give unbiased advise.

 

Underestimating Costs:

Presale prices may seem attractive, but it’s crucial to account for additional costs such as closing fees, GST, Property Transfer Tax,  Property Taxes, and Strata Fees. Ensure you have a comprehensive understanding of all associated costs to avoid financial surprises down the line.

 

Overlooking Contract Details:

The presale contract is a legally binding document, and overlooking its details can lead to complications. Pay close attention to clauses related to completion dates, potential delays, and warranty information. Consult with a legal professional to ensure you fully comprehend the terms and conditions. While the presale market is regulated by the provincial government, contracts for presales or preconstructed units are not. He also said they can be sticky to negotiate, and the wording is weighted in favour of developers. Not only can the developer refuse to consider an “assignment” option, it’s also not required to deliver exactly what the buyer saw in a showroom.

 

Ignoring the Fine Print:

Developers often provide disclosure statements outlining important information about the project. Ignoring these documents can result in misunderstandings or unmet expectations. Take the time to read and understand all the fine print, seeking clarification on any points that may seem unclear. “That’s why the Real Estate Development Marketing Act requires developers to provide a disclosure statement and gives purchasers the right to cancel presale contracts within the first seven days, so consumers have time to think through their decision

 

Skipping Inspections:

Even though you’re purchasing a property that hasn’t been built yet, it’s crucial to hire a qualified inspector to assess the developer’s reputation and the quality of their previous constructions. An inspection can reveal potential issues and help you make an informed decision.

 

Overlooking Financing Options:

Buyers sometimes make the mistake of not exploring various financing options. Shop around for mortgage options with a mortgage broker, consider pre-approval, and be aware of the potential impact of interest rate changes on your financial situation. Always ensure you have a worst case scenario back up plan.

 

Neglecting Resale Potential:

Consider the long-term prospects of the property, including its resale potential. A presale property should not only meet your current needs but also be a sound investment for the future. Evaluate the neighborhood’s growth potential and amenities that contribute to long-term value. .”  When a developer allows a contract to be re-assigned then a fee of one to three per cent of the sale price is usually charged to the original buyer and they remain legally liable to complete the purchase if the new buyer fails to do so.

By avoiding these common mistakes, you can approach the presale property market in BC with confidence and make decisions that align with your financial goals. If you have any questions or concerns, don’t hesitate to reach out to us directly for an introduction to experienced professionals to assist in guiding you through all aspects to ensure you understand the pros and cons tailored to your specific situation.

Happy house hunting!

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. 

Seize Your Mortgage Benefits: Top Actions Before February 29!

General Angela Calla 24 Jan

With tax season around the corner, we wanted to get this in your hands, being committed to your financial success.

Key Points:

  1. Potential Tax-Deductible Mortgage Interest: Your mortgage statements are enroute in the mail or on your online portal with your lender. Consult with a tax specialist and financial advisor to unveil potential deductions, reducing your tax burden, or potentially finding better insurance solutions increasing your financial flexibility. We can make introductions for you (just reply back with the best phone number to reach you at) if you don’t have an expert on hand or would like a second opinion. If you would like to review a different payment strategy, or plan for your renewal, our team are always here to help personally.

 

  1. Maximize Down Payment with Grants & Tax Refunds: Act early with a financial planner to leverage tax returns or grants, securing a larger down payment if you are considering making a home or investment property purchase this year and unlocking better loan terms if you are up for mortgage renewal this year. We have seen our clients gain some big financial wins and achieve goals much faster utilizing this.

 

  1. Accelerate Mortgage Paydown: With insights from a financial planner, and working together with us to strategize on paying down your mortgage faster, minimizing interest costs, and achieving long-term financial gains. You can also review different paydown strategies and compare with our mortgage app: https://www.dlcapp.ca/app/angela-calla?lang=en

 

  1. Declarations for Speculation & Vacancy – Vacancy Declaration for the City of Vancouver needs to be declared by February 2, 2024.  For all other areas the Speculation and Vacancy Tax need to be declared by March 31. This is a reminder to review and ensure you check this of your list of tasks if you live in a region where this is applicable.

Time is of the essence. Reach out before February 29th to harness these key opportunities and transform your mortgage into a dynamic tool for financial success!

Always here to help you and those you care most about.

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 Rates Steady and Forecasts a Soft Landing

General Angela Calla 24 Jan

The Bank of Canada Holds Rates Steady And Expects Rate Cuts Later This Year

Today, The Bank of Canada held the overnight rate at 5% for the fourth consecutive meeting but provided an outlook suggesting that monetary easing will begin by mid-year. The Bank forecasts a soft landing for the Canadian economy, with inflation falling to 2.5% by the end of this year. While some economists predict a recession, the Bank suggests that “growth will likely remain close to zero through the first quarter of 2024” and “strengthen gradually around the middle of 2024.” This would be a soft landing.

While inflation ended 2023 at 3.4%, owing mainly to high and sticky shelter costs, “the Bank expects inflation to remain close to 3% during the first half of this year before gradually easing, returning to the 2% target in 2025. While the slowdown in demand is reducing price pressures in a broader number of CPI components and corporate pricing behaviour continues to normalize, core measures of inflation are not showing sustained declines.”

The press release says that the “Governing Council wants to see further and sustained easing in core inflation and continues to focus on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour.”  The Bank now believes the economy is in excess supply, inflation expectations and corporate pricing behaviour are moving in the right direction, and wage demands, at 5.4% year-over-year in the last reading–are still too high. Wages are a lagging indicator and with job vacancies returning to pre-pandemic levels, wage pressures are likely to dissipate as the year progresses.

 

 

 

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

This was a more upbeat Bank of Canada statement. There is a good chance that monetary tightening has done its job, and inflation will trend downward in the coming months. As we have seen, the road to 2% inflation is bumpy, but we are heading there probably sooner than the Bank expects. As predicted, they are staying the course for now, but multiple rate cuts are likely this year. The scheduled dates for announcing the policy rate are March 6, April 10, June 5 and July 24. The Bank of Canada will begin cutting the overnight rate somewhere in there.

For now, my bet is on the June meeting, but if I’m wrong, it will likely be sooner rather than later. Once they begin to take rates down, they will do so gradually, 25 basis points at a time, and over a series of meetings. We could well see rates fall by 100-to-150 bps this year. Risks to the outlook remain, as always.

I do not expect the overnight policy rate to fall as low as the pre-Covid level of 1.75% this cycle. Inflation averaged less than 2% in the five years before COVID-19, depressed by increasing globalization and technological advances. Those forces are now reversed.

(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. 

Bank of Canada maintains policy rate, continues quantitative tightening

General Angela Calla 24 Jan

Bank of Canada Press Release

The Bank of Canada today held its target for the overnight rate at 5%, with the Bank Rate at 5¼% and the deposit rate at 5%. The Bank is continuing its policy of quantitative tightening.

Global economic growth continues to slow, with inflation easing gradually across most economies. While growth in the United States has been stronger than expected, it is anticipated to slow in 2024, with weakening consumer spending and business investment. In the euro area, the economy looks to be in a mild contraction. In China, low consumer confidence and policy uncertainty will likely restrain activity. Meanwhile, oil prices are about $10 per barrel lower than was assumed in the October Monetary Policy Report (MPR). Financial conditions have eased, largely reversing the tightening that occurred last autumn.

The Bank now forecasts global GDP growth of 2½% in 2024 and 2¾% in 2025, following 2023’s 3% pace. With softer growth this year, inflation rates in most advanced economies are expected to come down slowly, reaching central bank targets in 2025.

In Canada, the economy has stalled since the middle of 2023 and growth will likely remain close to zero through the first quarter of 2024. Consumers have pulled back their spending in response to higher prices and interest rates, and business investment has contracted. With weak growth, supply has caught up with demand and the economy now looks to be operating in modest excess supply. Labour market conditions have eased, with job vacancies returning to near pre-pandemic levels and new jobs being created at a slower rate than population growth. However, wages are still rising around 4% to 5%.

Economic growth is expected to strengthen gradually around the middle of 2024. In the second half of 2024, household spending will likely pick up and exports and business investment should get a boost from recovering foreign demand. Spending by governments contributes materially to growth through the year. Overall, the Bank forecasts GDP growth of 0.8% in 2024 and 2.4% in 2025, roughly unchanged from its October projection.

CPI inflation ended the year at 3.4%. Shelter costs remain the biggest contributor to above-target inflation. The Bank expects inflation to remain close to 3% during the first half of this year before gradually easing, returning to the 2% target in 2025. While the slowdown in demand is reducing price pressures in a broader number of CPI components and corporate pricing behaviour continues to normalize, core measures of inflation are not showing sustained declines.

Given the outlook, Governing Council decided to hold the policy rate at 5% and to continue to normalize the Bank’s balance sheet. The Council is still concerned about risks to the outlook for inflation, particularly the persistence in underlying inflation. Governing Council wants to see further and sustained easing in core inflation and continues to focus on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour. The Bank remains resolute in its commitment to restoring price stability for Canadians.

Information note

The next scheduled date for announcing the overnight rate target is March 6, 2024. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR on April 10, 2024.

 

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 Adjustable-Rate Mortgages: A Comparative Analysis

General Angela Calla 23 Jan

As part of our commitment to keeping you informed about mortgage options, we wanted to share important insights on Adjustable-Rate Mortgages (ARMs) and how they compare to other mortgage types.

Below is a summary of key points for your consideration:

  1. What You Should Know:

ARMs have an interest rate and payment amount that can change.

If prime rates rise, your monthly ARM payment will increase.

If prime DECREASES your monthly payment would Decrease ( improving cashflow)

The principal payment is fixed, ensuring your amortization stays on schedule.

A 0.50% increase in interest rates would raise the monthly payment of a $500,000 mortgage by roughly $100, this works the same way for a decrease.

 

  1. How Do Adjustable-Rate Mortgages Work?

ARM rates change based on the prime rate.

An increase in interest rates results in immediate higher interest payments.

Monthly payments increase, OR decrease impacting budgeting and planning.

 

  1. Comparing Variable Rate vs. Adjustable Rate Mortgages:

Variable rate mortgages have a fixed monthly payment, leading to potential challenges if interest rates rise. ( think Trigger Rates reached in 2022)

Adjustable rate mortgages allow for changes in the interest payment while keeping the principal payment fixed.

 

  1. Mortgage Trigger Rate: read here

A trigger rate can cause a sudden increase in payments for variable-rate mortgages.

Adjustable-rate mortgages adjust payments to maintain consistent principal payments.

See the videos here from CBC and Global news https://angelacalla.ca/general/interest-rates-still-on-the-rise-global-and-cbc-coverage/

 

Example of an Adjustable Mortgage Rate:

A $500,000 mortgage with a 0.50% increase in the prime rate can raise monthly payments by $100.

 

  1. 2022 Scenario:

Bank of Canada’s rate hikes in 2022 increased prime rates from 2.45% to 6.45%.

For a $500,000 mortgage, monthly payments could rise by approximately $1,107.

Prime Jan 2024 is sitting at 7.2% making that monthly payment now approx. $ 1,220.00

 

  1. Why Choose an Adjustable Mortgage Rate?

Gradual payment changes. OR declines

Convertibility to a fixed rate.

Lower mortgage penalties (3 months’ interest).

 

  1. Is an Adjustable Mortgage Rate Right For Me?

Consider your financial situation and ability to cover potential payment increases.

Assess your tolerance for risk and willingness to adapt to changing interest rates.

These insights aim to provide clarity as you evaluate mortgage options.

 

If you have any questions or would like to discuss your specific situation further, please don’t hesitate to reach out. We are here to assist you in making informed decisions tailored to your needs.

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. 

Decoding Mortgage Rates: Understanding the Influence of Bonds and the Bank of Canada Prime Rate

General Angela Calla 23 Jan

In the ever-evolving landscape of Canadian mortgages, understanding the factors that influence interest rates is crucial for homeowners making decisions about their financial future. One of the key distinctions lies in the basis for fixed interest rates, which are tied to the bond market, while variable and adjustable rates are influenced by the Bank of Canada Prime Rate.

 

 Fixed Interest Rates and the Bond Market:

Fixed-rate mortgages offer stability and predictability to homeowners, as the interest rate remains constant over the term of the loan. The foundation of fixed interest rates is intricately connected to the bond market.

When you secure a fixed-rate mortgage, your lender essentially bundles your mortgage with others and sells it as a mortgage-backed security on the bond market. These securities are attractive to investors seeking a steady and predictable return. The interest rate on fixed mortgages reflects the prevailing yields on government bonds, particularly those with a similar maturity period.

The bond market operates as a vast marketplace where governments and corporations issue bonds to raise capital. The yields on these bonds fluctuate based on various economic factors, including inflation rates, economic growth, and central bank policies. As bond yields rise or fall in response to these factors, fixed mortgage rates adjust accordingly.

In essence, homeowners with fixed-rate mortgages are indirectly linked to the bond market’s ebb and flow, providing them with a shield against short-term interest rate fluctuations.

 

Variable and Adjustable Rates and the Bank of Canada Prime Rate:

On the flip side, variable and adjustable-rate mortgages are anchored to the Bank of Canada Prime Rate. The Bank of Canada sets the Prime Rate as a benchmark for lending rates in the country. This rate is influenced by broader economic conditions, inflation, and the central bank’s monetary policy.

Variable-rate mortgages typically have an interest rate that is a set percentage above or below the Prime Rate. If the Prime Rate increases, so does the interest rate on variable mortgages, resulting in higher monthly payments for homeowners. Conversely, a decrease in the Prime Rate can lead to lower interest rates and more manageable payments.

Adjustable-rate mortgages, while similar to variable-rate mortgages, have a more intricate structure. They are tied to the Prime Rate but also include a predetermined margin set by the lender. This margin remains constant, but as the Prime Rate fluctuates, so does the overall interest rate on the mortgage.

 

Choosing the Right Path:

As a Canadian mortgage holder, recognizing the connection between interest rates and their underlying market dynamics empowers you to make informed decisions about your mortgage strategy. Fixed rates provide stability in a changing market, while variable and adjustable rates offer the potential for savings in a lower interest rate environment.

Ultimately, the choice between fixed and variable rates depends on your risk tolerance, financial goals, and the current economic climate. Staying informed about the factors influencing mortgage rates ensures you can navigate the complex world of home financing with confidence and clarity.

Remember, whether riding the stability of fixed rates or the flexibility of variable rates, your mortgage journey is uniquely yours. Understanding the intricate dance between the bond market and the Bank of Canada Prime Rate puts you in the driver’s seat, ready to navigate the road ahead.

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. 

Money Matters: Making the Most of Mortgage Opportunities Today

General Angela Calla 23 Jan

With inflation on the rise in December, the Bank of Canada is expected to maintain its Prime Rate next Wednesday, offering no immediate signs of a decrease.  Wondering when rates will go down? I recently contributed to a Zolo article, simplifying this complex topic.

To understand when the prime rate might drop, keep an eye on inflation – traditionally, rates tend to decrease when inflation hits 2% or below. However, if inflation rises, another rate hike isn’t off the table.

“Calla believes that as long as inflation continues to trend close to the Bank of   Canada’s 2% target rate, Canadians should expect mortgage rates to fall in mid-2024. But, since no one can accurately predict what will happen, it’s best to take a cautious approach. “In terms of time and how much,” Calla says, “plan for the worst and hope for the best.””

Planning now is crucial for safeguarding and building your wealth. Whether you’re up for renewal or making a purchase, selecting the right mortgage product positions you to take advantage of rate drops swiftly, improving your cash flow.

Just last week, we saved a client an astounding $52,000, thanks to our comprehensive mortgage planning, which includes a rate drop check with every mortgage.

Reach out to us directly to set up your personalized mortgage plan or for an introduction to a financial planner. Your financial well-being is our priority.

 

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. 

Could 2024 Mark a Turning Point for Would-Be Homebuyers?

General Angela Calla 18 Jan

The Canadian real estate landscape is poised to favour prospective home buyers in 2024 as urban areas nationwide steadily veer towards becoming buyer’s markets, according to polling by online marketplace Zolo.

This will be further impelled by potential cuts in mortgage rates throughout the year, although not to the historically low levels seen during the pandemic.

Real estate investor and podcast host Daniel Foch said that there will be a clear silver lining for buyers despite the elevated-rate environment.

“2024 will likely prove to be one of the best times in the last five years to purchase a property in Canada,” Foch told Zolo. “If buyers can afford today’s rates, they’ll be in a good financial position at renewal when those rates eventually drop.”

Veteran broker and author Angela Calla told Zolo that the likelihood of mid-year rate cuts rises if inflation aligns with the central bank’s 2% target rate.

Given this context, Calla suggested homeowners should explore various rate options rather than hastily accepting the initial renewal offer from their lenders.

On the seller side, Zolo president and COO Mustafa Abbasi is anticipating a buyer’s market until spring, with a possibility of market balance depending on a subsequent decline in interest rates.

Abbasi said that in this environment, sellers should take the opportunity to maintain their properties in optimal condition and strategically price them slightly below prevailing market value.

(article courtesy of CMP)

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.caor at 604-802-3983.

Click hereto view the latest news on our blog. 

Dealing With High-Interest Debt?

General Angela Calla 18 Jan

Dealing with high-interest debt can be a major financial challenge for individuals, especially during this time of year. At The Angela Calla Mortgage Team, we recognize the burden that multiple debt payments can cause. Therefore, we have access to provide flexible debt consolidation solutions to help alleviate financial stress.

Here are FIVE key ways our debt consolidation through home refinancing can empower your clients for financial freedom:

  1. Consolidate for Savings

Help your clients save time and money by combining their high-interest debts into one lower monthly payment through home refinancing. This strategy not only simplifies their finances but also is highly likely to reduce the total interest paid over time.

  1. Manageable Payment Schedule

With our refinancing options, your clients can establish a more manageable payment schedule. This tailored approach ensures that their financial plan aligns with their lifestyle and income, making debt payments less daunting.

  1. Organized Financial Control

Offer your clients peace of mind by helping them organize their bills. Our refinancing solutions bring all their debts under one roof, providing clarity and control over their financial obligations.

  1. Stress Reduction

Late payments can be a serious source of stress. By consolidating their debts, your clients can reduce the anxiety associated with managing multiple due dates, varied interest rates, and late payments.

  1. Credit Score

Consistent, on-time payments are key to improving credit scores. Through debt consolidation via home refinancing, your clients can potentially see an increase in their credit score, opening doors to better financial opportunities in the future.

Reach out to us directly for a personalized plan for you

angela@countoncalla.ca

604-802-3983

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 Rises to 3.4% Y/Y In December

General Angela Calla 17 Jan

A Bumpy Road To The Inflation Target

Canada’s headline inflation number for December ’23 moved up three bps to 3.4%, as expected, as gasoline prices didn’t fall as fast as a year ago. These so-called base effects were also evident in the earlier US inflation data for the same month.

Additional acceleration came from airfares, fuel oil, passenger vehicles and rent. Prices for food purchased from stores rose 4.7% yearly in December, matching the increase in November (+4.7%). Moderating the acceleration in the all-items CPI were lower prices for travel tours.

On a monthly basis, the CPI fell 0.3% in December after a 0.1% gain in November. Lower month-over-month price movements for travel tours (-18.2%) and gasoline (-4.4%) contributed to the monthly decline. The CPI rose 0.3% in December on a seasonally adjusted monthly basis.

Two key yearly inflation measures that are tracked closely by the Bank of Canada and filter out components with more volatile price fluctuations — the so-called trim and median core rates — increased, averaging 3.65%, from an upwardly revised 3.55% a month earlier. That’s faster than the 3.35% pace expected by economists. The trim rate rose due to the movements of rent and passenger vehicle prices.

Another important indicator, a three-month moving average of underlying price pressures, rose to an annualized pace of 3.63% in December from 2.94% in November, according to Bloomberg calculations. The Bank of Canada follows this metric closely because it reveals shorter-term inflation trends.

According to Bloomberg News, following the release of today’s CPI data, “the yield on two-year Canadian government bonds rose about four basis points to 3.857%…Traders in overnight swaps pushed back bets on when the Bank of Canada will start cutting rates to July, from as early as April before the release.”

 

Bottom Line

This is the last major data release before the Bank of Canada meets again on January 24th. I concur with the widely held view that the rate pause will continue at the next meeting despite evidence that the economy is slowing. Governor Tiff Macklem will err on the side of caution before beginning to cut overnight rates. The last reading on wages showed a 5.4% y/y rise, and yesterday’s housing release showed a bump in sales. Macklem and Co. will keep their powder dry until they see an all-clear signal that core inflation is sustainably below 3%.

(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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