Since an increasing number of lenders seem to be moving towards collateral charge mortgages these days, it has never been more important to understand the differences between a collateral and standard charge mortgage.

The primary difference is that a collateral charge mortgage registers the mortgage for up to 150% more than either the mortgage amount or property value in the case of some banks and credit unions instead of the amount you need to close your transaction (as is the case with a standard charge mortgage).

The major downside to a collateral mortgage becomes evident at your mortgage renewal date. For borrowers who want to keep their options open at maturity and have negotiating power with their lender, this isn’t the best product feature because collateral charge mortgages are difficult to transfer from one lender to another.

In other words, if you want to change lenders in order to seek a better product or rate in the future, you have to start from the beginning and pay new legal fees, which range from $500 to $1,000. With a standard charge mortgage, in most cases, the new lender will cover the charges under a “straight switch” in order to earn your business.  In addition, with a collateral charge, it could be flat out impossible to get a second mortgage (or secured line of credit) unless your home significantly appreciates in value.

Lenders offering collateral charge mortgages promote the benefit that it makes it easier and more cost effective to tap into your equity for such things as debt consolidation, renovations or property investment. There’s no need to visit a lawyer and pay legal fees – the money is available as your mortgage is paid down. Yet, if you read the fine print, you still may have to re-qualify at renewal.

A standard charge mortgage gives you the ability to move to another lender at renewal should you want to without incurring legal fees. In other words, it’s easier for you to keep your options open. If you need to borrow more with a standard charge mortgage, you have the option of a second mortgage or a home equity line of credit (HELOC), which also enables you to take money out as your mortgage is paid down.

Navigating through the mortgage process alone can be tricky. Working with a mortgage professional who has access to multiple lenders will help ensure you receive the product and rate catered to your specific needs.

Angela Calla, AMP

Dominion Lending Centres

604-802-3983 acalla@dominionlending.ca t:@angelacalla

Host of The Mortgage Show Saturdays at 7pm on CKNW AM980

Woman are powerful, they can create life and run billion dollar corporations. They deserve the best!

Although there is no Canadian data available, a recent study looking into the US and the UK shows that woman pay more for mortgages than men.

Regardless of gender, in order to ensure you don’t pay more, it’s essential to choose your mortgage provider based on asking these questions available at: http://www.angelacalla.ca/blog_post?id=7198

Asking the right questions is not only important when you’re seeking a mortgage – it also holds true for haircuts, dry cleaning, mechanical work, etc. Asking the right questions will give you clarity and comfort in your decision.

Ultimately, anyone can get charged more when their emotions get in the way.

On an emotional level, women tend to have more loyalty to a false sense of comfort when they share stories about their children, fashion and “small talk”, and allow that to influence their judgment more often than men. This can lead them to pay more, where men are likely to get the information straight from the mortgage broker.

Men statistically don’t get wrapped up in bank tactics (talking about unrelated issues) where they ask about your kids, dogs, the newest fashion trends, etc, which can sometimes cloud decisions. Women are more likely to find false comfort in that superficial part of the relationship instead of the facts and numbers, which men tend to focus on more.

Understanding how you made your decisions will allow you to be aware so, regardless of gender, you’ll be able to consider if you’re making your decision with your emotions in check!

Angela Calla, AMP

Dominion Lending Centres-Angela Calla

Host of ” The Mortgage Show” Saturdays @ 7pm on CKNW AM980

Phone :604-802-3983

Email: acalla@dominionlending.ca

www.angelacalla.ca

When most Canadians think mortgage, they think about a five-year rate.

When we question why they wish to opt for a five-year rate, generally borrowers note that it’s what they heard was best.

In some cases this is absolutely true, but there can be some HUGE costs that may hit them later if they haven’t made a decision based on a review of their longer term goals with an unbiased mortgage broker.

Did you know that most first-time homebuyers leave their mortgage within 36-48 months? It’s also important to consider the way prepayment penalties are calculated, because an early exit from your mortgage could cost you dearly!

The terms of the mortgage are so important on how they fit into your personal life and family plan for the next 10 years.

Many people fixate on rate because that’s all they know. While this kind of thinking can end up earning a borrower a great upfront rate, because of unfavourable terms they may end up with a higher balance at maturity or possibly a high prepayment penalty.

There are broker-only lenders that don’t have a high posted rate (like the banks), so your overall payment penalty could be lower. As most lenders charge a penalty based on the greater sum of three months’ worth of interest or the interest rate differential (IRD), this is really important. The IRD is the difference between the interest rate on your current mortgage and a lender’s posted rate (ie, the difference between your current interest rate and the rate the lender could get for a mortgage similar to yours today). If institutions have higher posted rates, you’ll pay more in IRD penalties.

There is new legislation that forces lenders to articulate how penalties are calculated, but by having higher posted rates, the banks are still benefitting. They quickly adapt to a marketplace to learn how to continue to make record profits. There are some products we can recommend that don’t carry this risk at all, and when we assess your needs and goals we’re in a position to advise accordingly based on our calculations of your specific needs.

To protect yourself, you need a plan from an independent mortgage broker.

Remember that the banks don’t offer unbiased advice, as both their branch employees and mobile sales forces only have access to one line of products – whatever’s offered by that one bank.

Angela Calla, AMP

Dominion Lending Centres-Angela Calla

Host of ” The Mortgage Show” Saturdays @ 7pm on CKNW AM980 Phone :

604-802-3983 Fax: 604-939-8795

Email: acalla@dominionlending.ca

www.angelacalla.ca

Once of the best things in life is the ability to create and add life to your family, which will become your future.

It can feel financially daunting and overwhelming (like moms needs anything else to add to post partum) with the reduction of income and all the new financial pressure of your family’s growing expenses with the addition of your new blessing.

Preparing yourself for the future using the right mortgage strategy can help.

Common Misconception About Maternity Leave and Your Mortgage:

Lenders won’t recognize your income. This is where your AMP can help. Different lenders have different policies and use different percentages of your pre-maternity income. This will depend on your credit score (which your AMP protects by using one application to shop multiple lenders) and equity in your home. Mortgage brokers truly can save you time and money. With a few simple documents in hand, brokers do all the work and our service is free!

So if you have grown out of your home, are looking to purchase your first home, have accumulated debt (like most growing families), or simply wish to review your mortgage to ensure you have the best product and rate catered to your unique needs, we’ll guide you through the process.

How to Relieve the Burden:

If you are pregnant when you buy your home or upon review of your mortgage, we can help. With your pre-maternity income, we’ll put a strategy together to help you pay your mortgage off faster yet have your payment reduced when your income is reduced so you get the best of both worlds.

It’s easy to feel overwhelmed while you and your baby are learning about your new life together! Remember, you do have options and the mortgage finance part can be easy. It’s usually just about taking the first step of sending that email or making that call!

Angela Calla, AMP

Dominion Lending Centres-Angela Calla

Host of ” The Mortgage Show” Saturdays @ 7pm on CKNW AM980 Phone :

604-802-3983 Fax: 604-939-8795

Email: acalla@dominionlending.ca

www.angelacalla.ca

As heard on this weeks Mortgage Show on CKNW with Angela Calla Saturday October 20th 2012. To get pre approved for this property or any other purchase email us at callateam@dominionlending.ca or call 604-802-3983

This weeks deal of the week has been brought to you by:

Robert Boies
Royal LePage Coronation West
cell: 604 341 3009 t: willingtwo
E-mail: robboies@royallepage.ca
www.willingsellerwillingbuyer.com

http://rboies.mlslink.mlxchange.com/?r=1144013794&id=363434333136.312

Please note that properties like this move quickly and getting set up with Rob Boies directly robboies@royallepage.ca will keep you abreast of all of these types of oppertunities meeting your speciafications

Thanks for visiting

Angela Calla, AMP

Courtesy of Financial Post September 19th 2012

“What we see now is probably, at worst, a soft landing,” Rick Waugh told reporters after an address to business leaders in Toronto.

Senior executives at the country’s third-biggest bank by assets have looked at ongoing evidence of a slowdown in some cities and they’re not surprised by what they are seeing, Mr. Waugh said.

The numbers are “well within our expectations,” he said.

Unlike the U.S. and Europe that are dealing with the fallout of severe real estate downturns, Canada is protected by the strength of the domestic economy and the banking system, which mostly avoided fallout from the financial crisis, Mr. Waugh said.

Read full article here http://business.financialpost.com/2012/09/18/housing-correction-underway-in-canada-soft-landing-likely-bankers/

To learn your options in the housing market contact

Angela Calla Mortgage Team 604-802-3983 callateam@dominionlending,ca

As heard on this weeks Mortgage Show on CKNW with Angela Calla Saturday September 8th 2012. To get pre approved for this property or any other purchase email us at callateam@dominionlending.ca or call 604-802-3983

This weeks deal of the week has been brought to you by:

Robert Boies
Royal LePage Coronation West
cell: 604 341 3009 t: willingtwo
E-mail: robboies@royallepage.ca
www.willingsellerwillingbuyer.com

http://rboies.mlslink.mlxchange.com/?r=1177588504&id=363434333136.312

Please note that properties like this move quickly and getting set up with Rob Boies directly robboies@royallepage.ca will keep you abreast of all of these types of oppertunities meeting your speciafications

Thanks for visiting

Angela Calla, AMP

Sept 5th 2012 

Good Morning,

For the 16th time the BOC has made no change to it’s prime rate. This means there will be no change to your line of credit or variable mortgage rate or payment if you have one. Full press release here: http://www.bankofcanada.ca/2012/09/press-releases/fad-press-release-2012-09-05/

That doesn’t mean we aren’t seeing changes elsewhere.  As I released some time ago, some lenders have cut their HELOC (Home Equity Lines Of Credit) down to 65% from the 80% already. Other lenders will follow shortly with little to no notice. Scotiabank today released they have said goodbye to the no down payment mortgage for home purchases as of Sept 15th 2012 of this year, and other lenders will also follow with little to no notice.

Read Changes to Lines of Credit here:http://www.angelacalla.ca/blog_post?id=7696&title=Changes-upcoming-to-secured-Lines-of-Credit

Read Scotiabanks says goodbye to no downpayment mortgages here: http://www.angelacalla.ca/blog_post?id=7883&title=Scotiabanks-says-goodbye-to-no-downpayment-mortgages–

Knowing that mortgage options can change like the weather (regardless of rates staying put) it’s important not to wait to review your options. If you have a renewal, carrying debt outside of your mortgage, planning to buy a home or just curious if you are optimizing your mortgage to it’s best ability; contact us today to see how we can help you at callateam@dominionlending.ca or 604-802-3983

Angela Calla

Dominion Lending Centres-Angela Calla Mortgage Team

Host of The Mortgage Show Saturdays @ 7pm on CKNW AM980

604-802-3983 callateam@dominionlending.ca

t @angelacalla www.angelacalla.ca

Banks to End Cashback Down Payments

As heard on this weeks Mortgage Show on CKNW with Angela Calla Saturday Auguest 18th 2012. To get pre approved for this property or any other purchase email us at callateam@dominionlending.ca or call 604-802-3983

This weeks deal of the week has been brought to you by:

Robert Boies
Royal LePage Coronation West
cell: 604 341 3009 t: willingtwo
E-mail: robboies@royallepage.ca
www.willingsellerwillingbuyer.com

http://rboies.mlslink.mlxchange.com/?r=65019040&id=363434333136.312

Please note that properties like this move quickly and getting set up with Rob Boies directly robboies@royallepage.ca will keep you abreast of all of these types of oppertunities meeting your speciafications

Thanks for visiting

Angela Calla, AMP