The best options when it comes to selecting the right mortgage term will always be different, and can change several times throughout your term. The Angela Calla Mortgage Team will always keep you informed of your very best options in real time.

Historically, 88% of the time, the variable-rate mortgage (VRM) has helped borrowers get ahead significantly. But today may be part of the 12% of the time when fixed rates are the way to go. Here’s why:

1. 1.       Cost of Security – the payment difference on a $300,000 mortgage. The payment for VRM is $1,246 and fixed is $1,309. The difference of $63 a month is a low cost of security for 5 years to ensure your payment does not increase.
2. 2.       Risk of inflation – if you follow the Bank of Canada (BOC), it suggests that one or two rate hikes towards the end of this year would be suitable. If the BOC carried through on its suggestions, this would mean your VRM payment would be higher than the fixed rate you could get today.
3. 3.       Today’s low rates will be history – once rates rise, although you can lock in with most variables at no cost, you lock in at the fixed rates at that time, not the rate you could have gotten initially. Rates have nowhere to go but up.

When will a VRM be attractive again? Not until prime rises! When rates go up, generally the discounts also increase. The rule of thumb is the best time to consider a VRM is when you can secure a discount below prime at 0.40 or more. Some exceptions will always apply. The Angela Calla Mortgage Team is always here to help without bias as we are with you throughout the life of your mortgage.

If you would like us to review your options, sign up here www.angelacalla,ca/contact

Angela Calla Mortgage Team

604-802-3983

callateam@dominionlending.ca

As heard on this weeks Mortgage Show on CKNW with Angela Calla Saturday June 16th 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:

http://rboies.mlslink.mlxchange.com/?r=1213290184&id=363434333136.312

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

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

With the demands of our everyday lives, it’s really easy for our credit cards and lines of credit to get out of hand.

What we thought we would use “once in a while” or “just until the next paycheque” can sometimes turn into a growing battle. If this sounds familiar, you’re not alone. Statistics say that as many as 6 out of 10 Canadians live paycheque to paycheque. Before you know it, you could be right at your credit card and credit line limits. The shocker comes when you take a closer look at one of your credit card statements and see that it can take decades to pay off! And in today’s tight credit environment, it’s best not to wait until your mortgage renewal to consolidate this high interest debt. The good news is if you have equity in your home, you can kiss that credit card or line of credit commitment goodbye.

Ask yourself these 3 questions to see if it’s worth it to add your outside debts to your mortgage and stop the cycle of debt if your payments outside of your mortgage are at least $300 per month. In the next 3 months are you receiving:

1.       The proceeds from the sale of an asset (car, trailer, artwork, etc)?

2.       A guaranteed work bonus or money you lent someone returned to you

3.       An inheritance

If your answer is no to these 3 questions, then it’s better to stop the cycle by rolling this debt into your mortgage (if you have enough equity in your home). Using the $300 a month example (which is usually a $10,000 debt), by refinancing your mortgage, you’ll save $250 a month you can bank so as a cushion in the event another sudden expense comes up, instead of charging it! 

Angela Calla, AMP
Mortgage Expert
Host of “The Mortgage Show” on CKNW AM980 Saturdays at 7pm

Earlier today, CMHC released the 2012 edition of the “Renovation and Home Purchase Report”.  The report provides insight into consumer home buying and home renovation intentions in 2012 and trends from 2011.  

This year, the report highlights that:

An estimated 1.7 million households in 10 major centres undertook renovations in 2011. This represents about 37 per cent of homeowner households, a slight decrease from 42 per cent, or 1.9 million households, in 2010.

Almost $21 billion was spent on renovations in 2011 across the 10 major centres surveyed, a decrease from 22.8 billion in 2010.  The estimated average cost of renovations undertaken in 2011 was $13,709, an increase from $12,972 in 2010.

As well, when Canadian homeowners were asked about their renovation plans for this year, 38 per cent indicated that they intend to spend $1,000 or more by the end of 2012. Renovation intentions for 2012 are similar to the 2011 results.

Renovation intentions for 2012 are strongest in St. John’s, where 48 per cent of consumers indicated they plan to undertake renovations costing $1,000 or more. This is followed by Winnipeg (44 per cent) and Halifax, Ottawa and Edmonton (42 per cent each). The proportion of potential renovators is lowest in Vancouver (34 per cent), Montréal (37 per cent) and Toronto and Calgary (both at 38 per cent).

Overall, the share of households that intend to buy a primary residence in 2012 is five per cent. Home buying intentions are strongest in Edmonton (7 per cent), Québec and Calgary (both at 6 per cent) and St. John’s and Montréal (5 per cent each). Purchase intentions in all other surveyed centres are at four per cent.

To view the full report, simply visit www.everythingyouneed.ca and click on the “Market Insight” section.

As Canada’s national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

If you are considering a home renovation over 10k, call the Angela Calla Mortgage Team first to ensure your finances are in order 604-802-3983 callateam@dominionlending.ca

 By any measure – health, education, housing or income – Canadians are far better off than residents of the developing world. But they’re also better off than many of the planet’s richest countries, according to the Organization for Economic Co-operation and Development’s latest quality-of-life assessment, released last month. In a comparison of 11 wellbeing indicators in 36 countries, Canada placed sixth, behind top-ranking Australia and third-place US. Norway, Sweden and Denmark also finished ahead of Canada. Click here for the full Globe and Mail article.

Angela Calla, AMP

Dominion Lending Centres-Angela Calla

604-802-3983

callateam@dominionlending.ca

As heard on this weeks Mortgage Show on CKNW with Angela Calla Saturday June 9th 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;

http://rboies.mlslink.mlxchange.com/?r=1920324254&id=363434333136.312

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

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

Good Morning,

No surprises here, prime remains the same. The full press release can be viewed here: http://www.bankofcanada.ca/publications-research/press-releases/

One of the most popular options being considered currently is a 10 year fixed term at 3.89%.  If your mortgage is coming up for renewal in the next year or you are a first time homebuyer who hopes to keep your residence as a rental when you move up the property ladder, here are 3 reasons why the 10 year is so attractive right now: http://www.angelacalla.ca/blog_post?id=6955&title=3-reasons-to-consider-a-10-year-fixed-term-today .

Getting your information in to us as soon as possible will protect you from rate hikes so you can optimize today’s low interest rate environment and you are not subject to timing where this offer could be withdrawn. We always review all the options that may be best suited for you.

This option was well suited for Bernadette of Surrey this week who quotes ” being on a fixed income and hearing about proposed mortgage renewal changes to qualifications was scary until I called Angela and her team. Knowing that I could have peace of mind for a decade makes me feel comfortable knowing I will not be subject to changes I cannot control. I am also comforted that I can bring this mortgage with me should I choose to downsize. Saving $427 dollars a month by having you review my mortgage and present me the 10 year fixed option sure helps me feel secure, even though you showed me options as low as 2.99%, there was no way I would put my future at risk. Thank you for all of your hard work, showing me all of my options and allowing me to choose the product that best suited my current and future needs”

If you or anyone that you care about has a rate over 4% and would like to save money on their mortgage, we are here to personally help and work towards making 2012 your best money saving year ever!

Contact us at: 604-802-3983 or acalla@dominionlending.ca

Always here to help, have a great week.

Angela Calla, AMP
Mortgage Expert
Host of “The Mortgage Show” on CKNW AM980 Saturdays at 7pm

4 Essential questions you need to ask your mortgage provider when shopping for a mortgage

It’s important to ensure you’re working with an experienced professional mortgage planner carrying an AMP designation. Since this is the largest financial transaction of your life, you need partner with someone who is capable of properly advising you and troubleshoot any issues that may arise.

What questions do you ask? These questions must be answered precisely. If the “professional” hesitates or says something unclear, run to a true professional who can clearly explain the answers!

1. What are mortgage interest rates based on?

The ONLY correct answer is the Bank of Canada rate for variable rate mortgages and for fixed interest rates  mortgage backed securities, specialized mortgage bonds, or Government of Canada long bonds.

A professional mortgage originator should at a minimum know the basics of how interest rates are determined. If an originator has their eyes on the wrong indicators, or worse yet has no idea of what these indicators are, needless to say it’s the “blind leading the blind”. At the Angela Calla Mortgage Team, we consistently review these indicators and, therefore, you can be confident in our ability to suggest mortgage strategies upfront to manage your mortgage long term.

2. How will rising interest rates in the coming years affect me if I take a fixed-rate mortgage product?

Most lenders will say if you’re locked in you are protected, which is a MISTAKE. That’s a dangerous answer when you consider what will happen when rates return to more normal levels (an increase of 2%) as experience shows us that the average mortgage payment in that case will rise $300 a month.

This is referred to as payment shock and it’s very risky for your long-term financial health. Working with a mortgage professional who proactively manages your mortgage and notifies you in live time when rates change with a suggestion on how to minimize payment shock is not only smart, but it also saves you thousands of dollars and years off of your mortgage. The Angela Calla Mortgage Team will show you.

3. What strategy are you recommending and why?

 The key word here is “strategy”. If your mortgage professional can’t clearly articulate the strategy behind their recommendations to you, they’re simply quoting a rate, and frankly anyone can do that. On your largest investment, make sure you’re dealing with someone who has a solid financial plan that is considering your overall financial wellness.

4. What commitment are you giving me to personally manage my mortgage over the long term?

This is crucial. Many mortgage providers, especially bank personnel, have no desire or ability to proactively manage your mortgage over the long haul.

How can you take advantage of changing markets in the future if no one is watching them for you and all you get is information after it’s too late to benefit? Who will ensure you don’t miss an opportunity to renegotiate? If you’re considering a variable-rate mortgage, why would you do this with someone who’s not committed to keeping an eye on it and giving you information in real time to help you optimize the market and maximize your lifestyle?

At The Angela Calla Mortgage Team, the real job starts when your mortgage funds. Anyone can sell a mortgage, but only those truly committed mortgage professionals can manage your mortgage over the long term. With this long-term management approach, we can significantly reduce your total cost of homeownership and have strategies available when things in life don’t go as planned, isn’t that the point?

When you ask the right questions, you’re able to make educated decisions.

Fundamentals never go out of style.

With this being one of the most important and largest financial transactions, either for the first time or in the growth of your real estate portfolio, you may only do this 4 or 5 times in your life… we do this EVERY single day and have over a decade of experience both professionally and personally, and sit on the front lines of advisory boards for lenders, government bodies, insurers and media. It’s your home and your future. It’s our profession and our passion.

We are ready to work in your best interest. call 604-802-3983 or email us at callateam@dominionlending.ca today!

Angela Calla, AMP
Mortgage Expert
Host of “The Mortgage Show” on CKNW AM980 Saturdays at 7pm