Bank of Canada Still Expects No Rate Increases Until 2023 – Dr. Sherry Cooper

General Angela Calla 22 Jan

The Bank of Canada, this morning, released its January Monetary Policy Report (MPR), showing they expect to keep overnight interest rates at its “effective lower bound” of 0.25% until 2023. To reinforce this commitment and keep interest rates low across the yield curve, the Bank will continue its Quantitative Easing (QE) program–buying $4 billion of Government of Canada bonds every week until the recovery is well underway. The central bank indicated it could pare purchases once the recovery regains its footing.

According to the Bank’s press release, “The Governing Council will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. In our projection, this does not happen until into 2023.” Officials are apparently optimistic about the economy’s prospects once the vaccine is sufficiently distributed and injected. There is no indication that they are planning additional measures to ease monetary policy.

This is particularly noteworthy for two reasons: 1) some economists had been speculating that the Bank would lower the overnight rate by 10-to-15 basis points to help mitigate the impact of continued and broadening lockdowns; and, 2) others thought the early development of the vaccine would trigger sufficient growth to warrant a rate hike in 2022. In the Bank’s current view, neither is likely to be the case. Why mess with a minute cut in already record-low interest rates when mortgage lending is still strong? The slow rollout of the vaccine and the mounting second wave of cases assure weak economic activity in Canada at least until the second half of this year.

As well, inflation remains surprisingly muted. In a separate release today, Stats Canada revealed that price pressures in Canada unexpectedly slowed in December as the country endured a new wave of lockdowns. After climbing to the highest since the pandemic in November, the latest reading shows price pressures are still well below the Bank of Canada’s 2% target. That’s consistent with the view from policymakers that inflation will remain subdued for some time.

The pandemic’s second wave has hit Canada very hard, and the vaccine rollout has been disappointing. Today’s MPR predicts that the economy will contract in the first quarter of this year. Economic weakness could be exacerbated by the Canadian dollar’s strength, which moved to above 79 cents US following today’s BoC announcement. Ten-year yields edged up modestly as well.

Bottom Line

For the year as a whole, economic growth is expected to be around 4% in 2021, compared to a contraction of -5.5% last year. As the inoculated population grows, the Bank forecasts an acceleration in growth to just under 5% in 2022 and a more-normal 2.5% in 2023. According to the January MPR, “The medium-term outlook is stronger than in the October Report because of vaccines’ positive effects, greater fiscal stimulus, stronger foreign demand and higher commodity prices. Meanwhile, potential output has also been revised up, reflecting an improved projection for business investment and less scarring effects on businesses and workers. There is considerable uncertainty around the medium-term outlook for GDP and the path for potential output. Thus, while the output gap is expected to close in 2023, the timing is particularly uncertain.”

Concerning housing activity, the report said, “Demand for housing has continued to show resilience, despite increasing case numbers and tightening restrictions. Housing activity should remain elevated into the start of 2021, supported by low borrowing rates and resilient disposable incomes. Changes in homebuyers’ preferences have also played a role. For example, price growth has been strongest for single-family homes and in areas outside city centres”. 


Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade, and is the best-selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to the YWCA helping empower women and children in our community. Additionally, in August of 2020, she surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. She has even been known to sing the national anthem at sporting events! On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or 604-802-3983.

BC Assessment Update – Home Owner Grant threshold set for 2021 tax year

General Angela Calla 11 Jan

The 2021 Home Owner Grant threshold is set at $1.625 million, ensuring the same percentage of British Columbia homeowners continue to be eligible.

New in 2021, the Province is taking over full administration of the grant program to ease the burden on municipalities. The Province already administers the grant for rural homeowners. Homeowners in all municipalities will now submit their applications directly to the Province instead of through their municipal office. Similar to previous years, applications will open in May when a majority of property tax notices are received.

As in previous years, homeowners are reminded to keep their property assessment notice from BC Assessment or property tax notice from their municipality. They will need their roll and jurisdiction number from their notice to apply for the Home Owner Grant with the Province.

The grant is reduced by $5 for every $1,000 of assessed value above the threshold. Some low-income seniors, veterans and people with disabilities can also apply for a supplement that replaces any grant amount they lose due to the value of their home being over the threshold.

The grant amounts for 2021 for homeowners in Metro Vancouver, the Fraser Valley Regional District and Capital Regional District are:

  • up to $570 for the basic Home Owner Grant; and
  • up to $845 for homeowners who are 65 years or older, or the homeowner is a person with a disability or lives with a relative who has a disability.

The grant amounts for 2021 for homeowners located in a northern or rural area (outside Metro Vancouver, the Fraser Valley Regional District and the Capital Regional District) are:

  • up to $770; and
  • up to $1,045 for homes in northern or rural areas where the homeowner is 65 years or older, or the homeowner is a person with a disability.

Homeowners may also be eligible for property tax deferment if they are 55 years or older or are financially supporting a dependent child.

Learn More:

To find out more about Home Owner Grant centralization starting this year, visit:
https://www2.gov.bc.ca/gov/content/taxes/property-taxes/annual-property-tax/home-owner-grant

To find out whether you qualify for property tax deferment, visit:
https://www2.gov.bc.ca/gov/content/taxes/property-taxes/annual-property-tax/defer-taxes

People with questions about their assessed property values, including questions about challenging assessments, can contact BC Assessment: https://www.bcassessment.ca/


Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade, and is the best-selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to the YWCA helping empower women and children in our community. Additionally, in August of 2020, she surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. She has even been known to sing the national anthem at sporting events! On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or 604-802-3983.

Government Updates – January 7, 2021

General Angela Calla 8 Jan

GOVERNMENT UPDATES
January 7, 2021

PROVINCIAL GOVERNMENT UPDATE

Provincial Health Order Extended

By order and direction of the PHO, individuals and businesses in B.C. must significantly reduce social interactions and travel, all events and social gatherings are suspended to significantly reduce COVID-19 transmission related to social interactions and travel.

The order is in effect until February 5, 2021 at midnight.

More information can be found here.

The BC COVID-19 Recovery Benefit online applications are open

The BC Recovery Benefit is a one-time direct deposit payment for eligible families, single parents or individuals. Benefit eligibility is based on net income from your 2019 tax return. This benefit is a tax-free payment of up to $1,000 for eligible families and single parents and up to $500 for eligible individuals. You must apply to receive the benefit, and you have until June 30, 2021 to apply:
https://www2.gov.bc.ca/gov/content/economic-recovery/recovery-benefit

PREVIOUS UPDATES

Click here to see previous updates.


Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade, and is the best-selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to the YWCA helping empower women and children in our community. Additionally, in August of 2020, she surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. She has even been known to sing the national anthem at sporting events! On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or 604-802-3983.

Top 3 Financial Points to Consider Right Now

General Angela Calla 11 Dec

  1. The last Bank of Canada announcement solidified as expected. Prime will stay the same for the coming months. Additionally, they’ve been forced they to take extreme monetary measures to keep the economy going.

What does that mean and how will homeowners be supported?

If you have a variable rate, enjoy the savings!  But keep in mind once we see the economic climate improve, we can expect rates to rise. Whenever you hear ”good” economic news, that’s the trigger to know a rise in rates is coming.

  1. Mortgage rates are at rock bottom. A major bank (HSBC) came out with a variable rate below 1%! It’s a quick flash in the now as the promotion ends Jan 4th and is only valid on:
    • purchases before Jan 4th
    • must have CMHC insurance
    • a purchase price of less than $1 million
    • and 25-year amortization

The bank figures only 10% of those who apply may be eligible.

  1. The cost of groceries is set to rise $700 a year for the average Canadian, slightly due to COVID-19, but mainly due to the weather extremes of drought and wildfire in the regions where we import meat, veggies, and supplies for the bakery.

So how does the average consumer make 2021 a money-saving year?

Try to plan your meals ahead to reduce waste and choose frozen veggies over fresh ones (they have the same nutrient values for a fraction of the cost)! Those who own a home are in a unique position to reviewing their existing mortgage to ensure you have your wealth and equity working to your best advantage. Right now approximately 75% of mortgage payments go towards their principal balance with today’s low-interest rates which, of course, will help keep your hard-earned cash in your wallet.


Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade, and is the best-selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to the YWCA helping empower women and children in our community. Additionally, in August of 2020, she surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. She has even been known to sing the national anthem at sporting events! On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or 604-802-3983.

Debt.ca – The Imminent Housing Crisis and the Average Canadian’s Plea

General Angela Calla 11 Dec

Is there a housing crisis brewing in Canada? With eviction moratoriums and mortgage payment deferrals having already expired for 2020, it’s possible many Canadians still suffering from COVID-related layoffs may have trouble paying for a place to live.

We spoke to six housing experts across Canada for their thoughts on what homeowners and renters can do to stay ahead of the game. The mission: to keep their homes and weather this economic storm until next year.

1. Eviction moratoriums have ended in most provinces. The economy being what it is, many renters will be faced with either a huge bill for back rent. Let’s not forget possible late fees or immediate eviction.What steps can renters take to survive the end of moratoriums?

Expert Calla’s Response:

The provinces have stepped in to protect renters by not allowing eviction for non-payment of rent and encouraging renters to communicate a plan with their landlords openly. While some things can be mandated, working together to find solutions is the best step a renter can take.

Additionally, renters can start by looking at where their spending is. We’re all learning something new together and adapting accordingly as we navigate these changing times. The sad reality is that seven out of 10 Canadians are living paycheck to paycheck. When we look at why that is from a financial literacy perspective, the basics of establishing a budget of what one can afford and spending within their means is the root of the issue.

The budget baseline should always include a portion of your paycheck automatically going to savings, just like taxes come off the top. Our savings should be fixed too. Then you spend for your housing and entertainment, clothing and other expenses. Utilizing that budgeting method is one thing within our control we can do to help us through these difficult times. If every consumer had 6 months’ living costs as an emergency fund set aside when these events out of our control happen, we would be better able to weather these storms together.

2. There’s also an equivalent mortgage payment deferral for homeowners that ended September 30. What can homeowners caught flat-footed by the COVID economy do to avoid losing their homes?

Expert Calla’s Answer:

The great thing is if you have homeownership, you have options. Thankfully, with all-time low mortgage rates, connecting with an accredited mortgage professional can provide you with unbiased advice. For example, we know where our clients have their mortgages. Those who are with the major banks were proactively sent what their lender is doing for the mortgage deferral process and how to access these resources. So they knew from day one how to safeguard themselves and avoid financial stress. After the deferral program ended, we aided and assisted our clients in blending and extending their mortgage (if they had the ability to do so). In most cases, the additional payment they would’ve had to pay on the deferral was eliminated or reduced because of that proactive mortgage management strategy.

A mortgage professional can do the math to see if it’s worth it for you to break your mortgage. If you have been hit by hard times, you can look into getting a second mortgage. It’ll improve cash flow until things stabilize for you. Independent mortgage brokers have access to dozens of banks, trust companies, and lenders that are not accessible any other way. Many have different policies when looking at borrowers that provide more options than any lender alone can offer. It also protects their credit. Shopping on their own with the lenders visible to the public only hurts the score further and decreases the lowest cost options.

So here is the most important reason why you need to use a mortgage broker. The banks won’t call you and tell you how to make them less money. So this is why in terms of financial literacy, who you select to take with you on your mortgage journey will make all the difference in what your lifestyle is going to look like.

3. What could federal and provincial governments do differently to help homeowners and renters without hurting landlords and lenders?

Angela Calla

Angela Calla

We all have to adapt to change and make choices. Experience demonstrates how you feel about personal responsibility. What you think the job of our government actually is will formulate your opinion.

Expert Calla:

If anything, the government has been pretty swift moving – they’ve worked quickly and given out a lot of money. They have provided rent relief programs, business loans, CERB, and many other resources. This spending the government has done is concerning to some degree. Of course, some have been hit really hard. But in the end, it comes down to two types of people: those who take and those who will fend for themselves. I’ve seen both ends of the spectrum.

We all have to adapt to change and make choices. Experience demonstrates how you feel about personal responsibility. What you think the job of our government actually is will formulate your opinion.

4. How much potential is there that we could be facing another housing market crash now that the mortgage payment deferrals and eviction moratorium have ended?

Calla:

Not even a pandemic can slow buyers. When you look globally, we are one of the most desired locations in the world. Due to our topography, geography, quality of life, great health care, and education. Safety without war and spaces where our communities look to support each other any way we can. I can’t imagine anything will stop this crisis. It’s shown more than anything that people are resilient. And, with the right mindset, we’ll always find a way to move forward. Never say never, so while the future is yet to be written, we can focus on the fundamentals of watching our spending.

Read the full article here.


Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade, and is the best-selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to the YWCA helping empower women and children in our community. Additionally, in August of 2020, she surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. She has even been known to sing the national anthem at sporting events! On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or 604-802-3983.

Published in Boulevard Magazine – “Mortgage Matters with Women of Influence, Angela Calla”

General Angela Calla 9 Dec

I learned the concept of saving by using time as my best asset when I was young; plus, I loved real estate. I loved what it did for our family who emigrated here and found it as a bigger sense of security for us.”

Angela Calla

As an award-winning “woman of influence” and mortgage expert frequently ranked among the top 10 brokers in Canada, Angela Calla is clearly at the height of her game.

Growing up in North Vancouver Angela embarked on her career path as one of the founding brokers of Dominion Lending Centre in 2006.

Today, alongside her team, she continues to actively and passionately assist mortgage holders to obtain the best deals.

Where did the journey begin?

“As soon as I hit the double digits, my parents talked to me about how important it was to start saving to own a home when you’re younger, rather than older, because real estate prices were so expensive,” Angela says.

“I learned the concept of saving by using time as my best asset when I was young; plus, I loved real estate. I loved what it did for our family who emigrated here and found it as a bigger sense of security for us.”

But while she may have surmised that something within the real estate arena would ultimately forge her career; knowing the exact role wasn’t immediate.

“While I loved real estate, I wasn’t drawn to being a real estate agent,” she adds.

“When I was working for another company—fresh out of high school—I had the opportunity to chair the North Shore Business Club… and at that point I learned what a mortgage broker did.”

Angela adds: “My parents were early adapters of using a mortgage broker in the early ‘90s, and it allowed them to qualify for a bigger home and more options.

“For me that was the perfect career choice. It allowed me to marry my passion for real estate with a passion for advocating for consumers, [ultimately allowing] for multiple options to get them to their end goal. What I loved most about mortgages was that the service was free for consumers.”

And for those that have engaged in the market, the role of a mortgage broker such as Angela is vital.

“The best thing about what we do as mortgage brokers is we get people the power of choice. Most Canadians can only list about a half dozen banks, but in actuality there are dozens of banks and financial institutions out there. However, all the banks only deal with licensed professionals.

“We take away all the marketing and work on the black-and-white numbers, based on your lifestyle, your income and your profile.”

Angela goes on to point out that brokers match consumers with the best lender and the best options. She says this gives people power and actually helps educate accountants and lawyers about available options. This is important, she says, because they’re generally very influential in people’s decision-making process.

“So people coming out of divorces can have different mortgages; self-employed and first-time home buyers have different access to different mortgages, and there are about 30 things that determine what is the best fit for each client.”

Angela is also quick to point out that without the sound advice of professionals in the field, one can often miscalculate the best plan of attack.

“Most people have made the costly mistake of thinking it’s the interest rate,” she says. “But the most important aspect is actually the terms, along with the interest that you pay, in combination with how your income is sourced—that’s a very important point.”

An industry expert on TV and radio and the go-to source for publishers across Canada, Angela is also a best-selling author of The Mortgage Code, available on Amazon in Canada and the US. Proceeds from sales are donated to a local, rotating charity each year.

She is also a magazine contributor and a guest speaker; she recently collaborated to publish her second book, Dynamic Women Success Secrets, and is working on her third collaboration called Pursuit: 365, which will be released March 2021.

It’s a lot on the proverbial plate, and it comes in addition to juggling a home life with two children.

And to prove her value as one of the best in the business class, just three months ago Angela surpassed one billion dollars in funded personal mortgage volumes—at just 37 years of age.

So we had to ask her to impart her sage advice for those getting into the market.

“Consumers often think shopping different lenders is the smart thing to do,” she says, “and it is, when it’s done through a mortgage professional. What they might not be aware of is shopping around on their own can negatively impact their credit score!  One of the major benefits of using a mortgage broker is that we submit the same single application to multiple lenders and that protects credit scores.”

See the article here.


Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to the YWCA helping empower women and children in our community. Additionally, in August of 2020 she surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. She has even been known to sign the national anthem at sporting events! On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or 604-939-8777.

Bank of Canada holds benchmark rate steady, updates economic outlook

General Angela Calla 9 Dec

This morning in its 10th and likely final policy decision of 2020, the Bank of Canada left its target overnight benchmark rate unchanged at what it describes as its “lower bound” of 0.25%. As a result, the Bank Rate stays at 0.5% and the knock-on effect is that borrowing costs for Canadians will remain low for the foreseeable future.

The Bank also updated its observations on the state of the economy, both in Canada and globally and pledged to continue to support market liquidity through its quantitative easing program.

These are the highlights of today’s BoC announcement:

  • Economic momentum heading into the fourth quarter appears to be stronger than was expected in October but, in recent weeks, record high cases of COVID-19 in many parts of Canada are forcing re-imposition of restrictions, which can be expected to “weigh on growth in the first quarter of 2021 and contribute to a choppy trajectory until a vaccine is widely available”
  • Near term, waves of COVID-19 are expected to “set back recoveries” in many parts of the world
  • It is maintaining what it calls its “extraordinary forward guidance,” reinforced and supplemented by its QE program, which continues at its current pace of “at least” $4 billion per week
  • The labour market continues to recoup the jobs that were lost at the start of the pandemic, albeit at a slower and “highly uneven pace” across different sectors and groups of workers
  • Commodity prices, including for oil, are being pushed by up stronger demand
  • A broad-based decline in the US exchange rate has contributed to a further appreciation of the Canadian dollar
  • The federal government’s recently announced measures should help maintain business and household incomes during this second wave of the pandemic and support the recovery

Of note, the BoC commented on a pick up – to 0.7% – in CPI inflation in October, largely reflecting higher prices for fresh fruits and vegetables. This suggests a “slightly firmer track for inflation” in Q4 but measures of core inflation are all below 2%, and “considerable economic slack” is expected to continue to “weigh on inflation for some time.”

Looking ahead

The Bank’s Governing Council acknowledged that Canada’s economic recovery continues to require “extraordinary monetary policy support.” Accordingly, it will hold its policy interest rate at the lower bound until economic slack is absorbed so that the Bank’s 2% inflation target is sustainably achieved.

In its October projection, the BoC suggested that the inflation target may be achieved “into 2023.” It provided no further update on this projection. It did however reiterate its commitment to keep interest rates low across the yield curve by using its QE program until the recovery is well underway.

BoC’s next scheduled policy announcement is January 20, 2021. We will provide an update following that announcement and as always, you can find other capital market insights on the Resources page of this website.

Read the full Bank of Canada Press Release here.


Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to the YWCA helping empower women and children in our community. Additionally, in August of 2020 she surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. She has even been known to sign the national anthem at sporting events! On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or 604-939-8777.

Buying a home for the first time? Here’s all you need to know.

General Angela Calla 8 Dec

Being on the path to purchasing your first home is one of the most exciting and most rewarding moments in life! While people don’t always dream of the perfect mortgage, we do grow up dreaming of a white picket fence and our dream home. Even if you imagined your dream home as a 6-bedroom mansion, we all have to start somewhere!

This first-time home buyer section will take you through the important steps and considerations for your first home, including:

  • Determining whether you are ready for home ownership
  • Costs of home ownership
  • The process of buying your first home
  • Securing your down payment
  • Mortgage pre-qualification and pre-approval
  • Financial Approval
  • Closing day

Let’s get started.

 Are You Ready for Home Ownership?

Before you jump on in, there are some things you should ask yourself. As amazing as it is to be a first-time home buyer, it is important to remember that this is likely the largest financial decision you will ever make. There are a few questions you can ask yourself to make sure you’re ready to take this incredible leap!

  1. Are you financially stable?
  2. Do you have the financial management skills and discipline to handle this large of a purchase?
  3. Are you ready to devote the time to regular home maintenance?
  4. Are you aware of all the costs and responsibilities that come with being a homeowner? Let’s find out!

Do You Know the Costs?

There are two major costs associated with home ownership – let’s make sure you’re ready to take it on!

Upfront Costs: The initial amount of money you need to buy a home, including down payment, closing costs and any applicable taxes.

Ongoing Costs: The continued cost of living in a home you own, including mortgage payments, property taxes, insurance, utility bills, condominium fees (if applicable) and routine repairs and maintenance. It is also important to keep in mind potential major repairs, such as roof replacement or foundation repair, that may be needed now or in the future. In addition, if you choose a property that is not hooked up to municipal services (such as water or sewer) there may be additional maintenance costs to consider.

Buying Your First Home

If you’ve decided to take the plunge, you now need to start by figuring out what you can afford. Fortunately, there are all kinds of calculators and tools available. A great place to start is the free My Mortgage Toolbox app which can help you find a mortgage professional in your area. A mortgage professional is a great alternative to traditional banks and can help you find the best rate in the market, as well as save you time by doing the leg work for you!

The Down Payment

Regardless of whether you choose a mortgage professional or traditional bank, the first step begins with your down payment.

The minimum down payment on any mortgage in Canada is 5 percent but putting down more is beneficial whenever possible as it will lower the amount being borrowed. However, if you can only afford the minimum that is perfectly okay! Just remember, if you are putting down less than 20 per cent to purchase your home, default insurance will be mandatory to protect the investment.

Ideally, individuals looking to purchase their first home will have built up a nest egg of savings that they can apply towards a down payment. However, we know this is not possible for everyone so if you don’t have it all saved, don’t worry! Besides being a vital savings plan for retirement, RRSPs can be a great resource for first-time home buyers and can be cashed in up to $35,000 individually towards a down payment. In fact, most mortgage professionals will tell you nearly half of all first-time buyers use their RRSPs to help with the payment. Those first-time buyers who choose this option will have 15 years to pay it back and can defer these payments for up to two years if necessary. Always remember though, deferring a payment can increase the time to pay off the loan and you will still owe the full amount!

Another option for securing your down payment is a gift from an immediate family member, typically a parent. All that is required for this is a signed Gift Letter from the parent (or family member providing the funds) which states that the money does not have to be repaid and a snapshot showing that the gifted funds have been transferred.

Mortgage Pre-Qualification

Once you have your down payment and are ready to realize the dream of owning your first home, you must get pre-qualified!

This process provides you with an estimate of how much you can afford based on your own report of your financial situation. The benefit of this is that it sets the baseline for a realistic price range and allows you to start looking for that perfect home within your means! Now this process is not a mortgage approval, or even a pre-approval but it helps to establish your budget. You must supply an overview of your financial history (income, assets, debt and credit score) but the real requirements come with the pre-approval process where you submit your actual documentation.

Mortgage Pre-Approval

While this may seem similar to pre-qualification, the pre-approval process requires submission and verification of your financial history to ensure the most accurate budget to fit your needs.

As a result, getting pre-approved can help determine:

  • The maximum amount you can afford to spend
  • The monthly mortgage payment associated with your purchase price range
  • The mortgage rate for your first term

Not only does getting pre-approved make the search easier for you, but helps your real estate agent find the best home in your price range. Temptation will always be to start looking at the very top of your budget, but it is important to remember that there will be fees, such as mandatory closing costs, which can range from 1 to 4% of the purchase price. Factoring these into your maximum budget can help you narrow down a home that is entirely affordable and ensure future financial stability and security.

Getting pre-approved doesn’t commit you to a single lender, but it does guarantee the rate offered to you will be locked in from 90 to 120 days which helps if interest rates rise while you are still shopping. If interest rates actually decrease, you would still be offered the lower rate. Another benefit to pre-approval is that, when it comes time to purchase, pre-approval lets the seller know that securing financing should not be an issue. This is extremely beneficial in competitive markets where lots of offers may be coming in.

PROTECTING YOUR PRE-APPROVAL

  • Refrain from having additional credit reports pulled once you have been pre-approved
  • Refrain from applying for new credit, closing off credit accounts or making large purchases until after the sale is complete
  • Be prepared to show a paper trail – any unusual deposits in your bank account may require explanation. Also, if your down payment comes from savings, the bank will want 90 days of statements to ensure the funds are accounted for.

Financial Approval

You’re almost there! Financial approval is the last step to getting your mortgage and buying your first home! You will need to keep in mind that just because you are pre-approved, it doesn’t guarantee that the final mortgage application is approved. Being entirely candid with your home-buying team throughout the process will be vital as hidden debt or buying a big-ticket item during your 90-120-day pre-approval can change the amount you are able to borrow. It is best to refrain from any major purchases (such as a new car) or life changes (such as changing jobs) until after closing and you have the keys to your new home!

Closing Day

Phew, you made it. Closing day is one of the most exciting moments where all the house hunting and paperwork really pays off! It is on this day that you will want to make use of your lawyer or a notary.

To complete the process of closing the sale, your lender gives your lawyer the mortgage money. You would then pay out the down payment (minus the deposit) and the closing costs (typically 1 to 4% of the purchase price). Typically, this payment is done through a bank draft, which will require a bank run ideally 10 days before closing, which is then brought to the lawyer on your closing date. From there, the lawyer or notary then pays the seller, registers the home in your name and gives you the deed and the keys!

Congratulations, you are now a home owner!!


Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth. Additionally, in August of 2020 she surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. She has even been known to sign the national anthem at sporting events! On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or 604-939-8777.

Government Update

General Angela Calla 7 Dec

GOVERNMENT UPDATES
Monday, December 7

PROVINCIAL GOVERNMENT UPDATE
Extension of PHO order on province-wide restrictions to January 8, 2021

By order and direction of the Provincial Health Officer, all events and social gatherings are suspended to significantly reduce COVID-19 transmission related to social interactions and travel, with the following updates:

  • Drive-in and drop-off events: may proceed with a limited number of people and a COVID-19 Safety Plan in place. You can have a maximum of 50 cars in attendance. View examples here.
  • Drive-thru events: Uncontrolled drive-thru events are suspended, as cars continually moving through a venue may exceed 50 at one time. Operators of drive-thru events can only continue to operate if they restrict the number of cars to 50 at one time. View examples here.
  • Christmas and holiday celebrations: All December celebrations will look different this year. Celebrate with your immediate household or core bubble.  Consider hosting virtual parties and religious services, Unwrap gifts over Zoom or Skype, and if you must travel for essential reasons, review the health and safety precautions
  • Adult indoor and outdoor team sports are suspended for people 19 years of age and older. View the full list here.

The order is in effect from November 19, 2020 at midnight to January 8, 2021 at midnight. View the full order update here.

Throne Speech highlights: actions to protect health, livelihoods

Today’s speech focused on the immediate actions government is taking to protect British Columbians’ health and livelihoods from the threat of COVID-19. In the months ahead, government will build on the measures already in place. Some initiatives will be extended or expanded, and new ones launched. View the full news release here.

  • New Recovery Benefit: this will be rolled out by the end of the year. Families with a combined household income of less than $125,000 per year will be eligible to receive $1,000; families earning above that, up to $170,000, will receive payments on a sliding scale. Individuals earning less than $62,000 a year will be eligible for $500, with those earning up to $87,000 eligible for a payment on a sliding scale.
  • Vaccinations: Preparations are underway to ensure that when a vaccine is available, it will be distributed to all British Columbians as quickly and safely as possible, beginning with those most at risk.
  • Key investments in health care: this will allow more patients to receive treatment at home, reduce wait times, and train and hire more doctors and nurses.
  • New tax measures: these steps will reward businesses for hiring, and help them grow and become more productive by making it easier for them to invest in equipment and machinery.

The focus is now on beating the virus, which will allow British Columbia to move as quickly as possible to address the economic recovery and its broader priorities: investing in people, strengthening communities, and supporting jobs and growth in a clean-energy future. The Government’s plans along these themes will be set out in more detail in a speech from the throne in the spring.

PREVIOUS FEDERAL GOVERNMENT UPDATE
On November 30, the Department of Finance Canada released the Annual Financial Report of the Government of Canada for 2019–20. This annual publication provides an overview of the government’s spending and revenue for the previous fiscal year and highlights the factors affecting these results.

The Deputy Prime Minister and Minister of Finance also released Supporting Canadians and Fighting COVID-19: Fall Economic Statement 2020. This plan will continue to protect Canadians’ health, jobs and the economy by doing the following:

  • COVID-19 Safety: Investments in testing & tracing, procurement of PPE, measures to protect people in long-term care, and $150 million to improve ventilation in public buildings.
  • Canada Emergency Wage Subsidy: increasing the maximum rate of CEWS to 75 per cent for the period beginning December 20, 2020 and extending this rate until March 13, 2021. This program will be there for businesses until June 2021.
  • Canada Emergency Rent Subsidy and Lockdown Support: extending the current rates of CERS and Lockdown Support until March 13, 2021. This program will be there for businesses until June 2021.
  • Highly Affected Sectors Credit Availability Program: New programs to support Canada’s hardest-hit industries, like tourism, hotels, arts and culture, and the air sector.
  • Families with Young Children: Temporary support of up to $1,200 in 2021 for each child under the age of six for families entitled to the Canada Child Benefit.
  • Sustainability Goals: Support for Canadians to make their homes greener and more energy efficient, a plan to plant 2 billion trees and laying the groundwork for a Canada-wide Early Learning and Child Care System.

PREVIOUS UPDATES

Click here to see previous updates.


Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth. Additionally, in August of 2020 she surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. She has even been known to sign the national anthem at sporting events! On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or 604-939-8777.

Federal Fiscal Update: Finance Minister Freeland’s Debut

General Angela Calla 2 Dec

Justin Trudeau’s government, which has delivered the biggest COVID-19 fiscal response in the industrialized world, announced plans for another dose of stimulus and vowed to continue priming the pump as long as needed.

Finance Minister Chrystia Freeland unveiled $51.7 billion of new spending over two years in a mini-budget Monday, led by an enhanced wages subsidy for business. Freeland also pledged, without detailing, another $70 billion to $100 billion of additional stimulus over three years to spur the recovery.

But the finance minister clearly heeded calls for fiscal prudence. She put off any major structural spending announcements, promised any additional stimulus will be temporary and introduced new taxes on digital giants including Netflix, Amazon, and Airbnb, to help pay for it all.

“Our government will make carefully judged, targeted and meaningful investments to create jobs and boost growth,” Freeland said. It will provide “the fiscal support the Canadian economy needs to operate at its full capacity and to stop COVID-19 from doing long-term damage to our economic potential.”

Freeland revised higher the nation’s projected deficit this year to $381.6 billion, or 17.5% of GDP. That’s up from a deficit of 1.7% of GDP last year. According to estimates from the International Monetary Fund, no major economy will show a bigger fiscal swing in 2020.

The budgetary red ink is projected at $121 billion next year, before any additional stimulus. In total, spending linked to the government’s COVID response accounted for C$75 billion of this year’s deficit, and C$51 billion next year.

Based on Monday’s projections, the deficit is seen gradually narrowing to about $51 billion in two years and $25 billion by 2025.

The planned stimulus over the next three years will total no more than 4% of GDP, which the document said is in line with the Bank of Canada’s estimate of the level of slack in the economy. Freeland said, “fiscal guardrails” tied to the labour market would help determine the extent of the additional stimulus.

Among the measures announced today, Freeland boosted the government’s wage subsidy program (Canada Emergency Wage Subsidy, CEWS) to cover as much as 75% of payroll costs for businesses and extended its commercial rent subsidy and lockdown support top-ups until March. Both were slated to run out on December 20. The current cap on CEWS was 65%.

The federal government plans to create a new funding program to help restaurants, tourism companies and other businesses in industries hardest hit by COVID-19.

The Highly Affected Sectors Credit Availability Program (HASCAP), which was announced in the government’s fiscal update Monday, will offer eligible businesses loans of up to $1 million, with a 10-year term.

The money will be lent by banks or other financial institutions, but guaranteed by the federal government.

“We know that businesses in tourism, hospitality, travel, arts and culture have been particularly hard-hit. So we’re creating a new stream of support for those businesses that need it most — a credit availability program with 100-per-cent government-backed loan support and favourable terms for businesses that have lost revenue as people stay home to fight the spread of the virus,” Finance Minister Chrystia Freeland said in her prepared speech to the House of Commons.

Establishing a national childcare plan is a key long-term goal, with Freeland vowing a detailed plan in next year’s budget. In her forward to the fiscal update, she described the daycare strategy as “a feminist plan” that also “makes sound business sense.”

As a start, the Liberals are proposing in their fiscal update to spend $420 million in grants and bursaries to help provinces and territories train and retain qualified early childhood educators.

The Liberals are also proposing to spend $20 million over five years to build a child-care secretariat to guide federal policy work, plus $15 million in ongoing spending for a similar Indigenous-focused body.

The money is designed to lay the foundation for what will likely be a big-money promise in the coming budget.

Current federal spending on child care expires near the end of the decade, but the Liberals are proposing now to keep the money flowing, starting with $870 million a year in 2028.

There is also money for action on climate change. The government allocated C$2.6 billion in grants for homeowners to improve efficiency and $150 million over three years for electric vehicle charging stations.

The government also detailed some help for the hard-hit tourism sector, including funding for airports. But with Transport Minister Marc Garneau’s negotiations with airlines underway, there is no specific money for carriers including Air Canada and WestJet Airlines Ltd.

Bottom Line

There will continue to be great concern about the largest budget deficits since World War II. Does Canada really need the proportionately largest COVID fiscal response in the industrialized world?  The outlook is somewhat less dire than when the government released a fiscal snapshot in July. The unemployment rate at 8.9% is down materially from May’s 13.7% high but well above February’s 5.6%. The economy recovered ground through the third quarter, although the second wave of pandemic and ensuing restrictions undoubtedly will topple economic activity this quarter.

There is little worry that the government can sustain a massive deficit this year. It can, given low debt levels entering the crisis and historically low interest rates. But now that it has no fiscal guardrails, there’s a risk debt-to-GDP will continue to rise in the medium term if it continues to spend ambitiously.

The government is adding a new revenue source by taxing large digital companies. Still, in time, with this level of spending, they will be tempted to raise taxes on domestic sources, for example, hikes in the GST and higher capital gains taxes. This would be misguided, given the fragility of the recovery.

There is a greater risk that the government is overdoing the stimulus with vaccines on the horizon than undergoing it. Canada’s programs have been generous and household-focused compared to our G7 peers. The government must be strategic in assuring that new program spending is focused on future growth, beyond the pandemic, so that our debt-to-GDP will resume its downward trend. The risk is that once created; it is difficult to rein in spending.

SOURCE


Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth. Additionally, in August of 2020 she surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. She has even been known to sign the national anthem at sporting events! On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or 604-939-8777.