Federal Budget 2023…Press the Snooze Button

As promised, there would be nothing much in this year’s budget for fear of stimulating inflation. The federal government faces a challenging fiscal environment and a weakening economy. Ottawa promised it would err on the side of restraint. Instead, Finance Minister Chrystia Freeland announced a $43 billion increase in net new government spending over six years. The new expenditures focus on bolstering the rickety healthcare system, keeping up with the US on new clean-technology incentives, and helping low-income Canadians to deal with rising prices and a slower economy.

Tax revenues are expected to slow with the weaker economy. The result is a much higher deficit each year through 2028 and no prospect of a balanced budget over the five-year horizon.

The budget outlines significant increases to healthcare spending, including more cash for provincial governments announced earlier this year and a $13-billion dental-care plan that Trudeau’s Liberals promised in exchange for support in parliament from the New Democratic Party.

Freeland is also announcing substantial new green incentive programs to compete with the Inflation Reduction Act signed into US law last year by President Joe Biden. The most significant new subsidy in the budget is an investment tax credit for clean electricity producers. Still, it also includes credits for carbon capture systems, hydrogen production, and clean-energy manufacturing.

The budget promises $31.3 billion in new healthcare spending and $20.9 billion in new green incentive spending by 2028. On top of that is $4.5 billion in affordability measures, half of which is for an extension of a sales tax credit for low-income Canadians.

The spending is partially offset by tax increases on financial institutions and wealthy Canadians and a pledge to reduce government spending on travel and outside consultants. Freeland is planning to raise billions of dollars from banks and insurance companies by changing the tax rules for dividends they get from Canadian firms. The new tax will apply to shares held as mark-to-market assets, not dividends paid from one subsidiary to another.

Wealthy Canadians pay the alternative minimum or regular tax, whichever is higher. The government announced in the budget that it is increasing the alternative minimum rate to 20.5 percent from 15 percent starting in 2024. Ottawa is also imposing new limits on many exemptions, deductions and credits that apply under the system beginning in 2024.

“We’re making sure the very wealthy and our biggest corporations pay their fair share of taxes, so we can afford to keep taxes low for middle-class families,” Finance Minister Chrystia Freeland said in the prepared text of her remarks.

Canada’s debt-to-GDP ratio will worsen next year, despite the government’s reliance on this measure as a fiscal anchor. Debt-to-GDP will rise from 42.4% to 43.5% next year and is projected to decline very slowly over the next five years.

Not Much for Affordable Housing

The budget included a laundry list of measures the federal government has taken to make housing more affordable for Canadians.  

Budget 2023 announces the government’s intention to support the reallocation of funding from the National Housing Co-Investment Fund’s repair stream to its new construction stream, as needed, to boost the construction of new affordable homes for the Canadians who need them most.

But there was one initiative tucked away in a Backgrounder entitled “An Affordable Place to Call Home.” I am quoting this directly from the budget:

A Code of Conduct to Protect Canadians with Existing Mortgages

“Elevated interest rates have made it harder for some Canadians to make their mortgage payments, particularly for those with variable rate mortgages. 

• That is why the federal government, through the Financial Consumer Agency of Canada, is publishing a guideline to protect Canadians with mortgages who are facing exceptional circumstances. Specifically, the government is taking steps to ensure that federally regulated financial institutions provide Canadians with fair and equitable access to relief measures that are appropriate for the circumstances they are facing, including by extending amortizations, adjusting payment schedules, or authorizing lump-sum payments. Existing mortgage regulations may also allow lenders to provide a temporary mortgage amortization extension—even past 25 years.

This guideline will ensure that Canadians are treated fairly and have equitable access to relief, without facing unnecessary penalties, internal bank fees, or interest charges, which will help more Canadians afford the impact of elevated interest rates.”

We will see what OSFI has to say about this, as the details are always of paramount importance. OSFI is scheduled to announce potential changes to banking regulation to reduce bank risk. We’ve heard a lot about banking risks in recent weeks.

The budget also reduced the legal limit on interest rates. The government intends to lower the criminal rate of interest from 47% (annual percentage rate) to 35%. According to the law firm Cassels, “’Interest’ is defined broadly under the Code and includes all charges and expenses in any form, including fees, fines, penalties, and commissions.”

Bottom Line

While this was not one of the more exciting budgets, it is important that our debt-to-GDP ratio is low in comparison to other G-7 countries. It is good news that Ottawa recognizes the financial burdens facing homeowners with VRMs. If the banks can extend remaining amortizations when borrowers renew, the pressure on their pocketbooks will be markedly lower.

(This article is courtesy of the Sherry Cooper Assoc.)

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. 

The government of Canada just dropped its 2023 budget. Like last year, there were no major mortgage bombshells.

Below is a quick rundown of the budget updates with lending relevance.

Rate and inflation impact

We haven’t had a chance to dive deep into the inflation ramifications but suffice it to say, the budget’s projected $43 billion of new deficit spending over six years won’t help keep inflation and mortgage rates down.

Nor will federal debt, as a proportion of GDP, climbing from 42.5% to 43.5%.

On a positive note, however:

• Government bond issuance is expected to drop 7% this year (less supply keeps rates lower, other things equal)
• Federal debt-to-GDP is projected to decline from 43.5% to 39.9% by 2027-29 (although, government debt forecasts and long-range weather forecasts have much in common).

In practice, the effects of this government over-borrowing won’t be noticeable to your average Joe borrower — and that’s what our leaders count on.

What is noticeable is the fact that high inflation has hammered home sales (-40%) and average national prices (-18.9%, per CREA) since the February 2022 peak.

The budget states:

“Continued progress on reducing inflation will be needed over the coming year to ensure that this period of elevated inflation is only temporary. As a result, there remains uncertainty about how long interest rates around the world will need to remain elevated.”

For what it’s worth, Finance Minister Chrystia Freeland says the measures in her budget are “carefully targeted” to avoid stoking inflation.

New lending-related policies

Here’s what the Liberals have proposed:

1. Usury adjustment: The government intends to lower the criminal rate of interest from 47% (annual percentage rate) to 35%. According to the law firm Cassels, “’Interest’ is defined broadly under the Code and includes all charges and expenses in any form, including fees, fines, penalties, and commissions.”
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2. Distressed mortgagor relief: The Financial Consumer Agency of Canada will publish a guideline to “ensure that federally regulated financial institutions provide” mortgage borrowers with relief if they hit hard times, including extending amortizations, adjusting payment schedules, or authorizing lump-sum payments. The government says this guideline “will ensure that Canadians are treated fairly and have equitable access to relief, without facing unnecessary penalties, internal bank fees, or interest charges…” In practice, most mainstream lenders and all default insurers already offer such borrower “workout” programs. This measure would seemingly formalize and publicize it, potentially leading to higher non-payment rates (as more Canadians take advantage of perceived lender leniency).
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3. Lower CMB costs: The government “intends to undertake market consultations” by the fall on consolidating Canada Mortgage Bond issuance within the government’s regular bond issuance program. The goal is to “reduce” the cost of CMBs, which cost more to issue (carry higher yields) despite having the same credit rating as regular government bonds. The Department of Finance says it would “reinvest savings into important affordable housing programs.”
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4. FHSA to launch in four days: The government reiterates that financial institutions can start offering the Tax-Free First Home Savings Account on April 1, 2023. The FHSA is meant to help first-timers save for a down payment. It’s a new registered plan that allows first-timers to save $40,000 total ($8,000 a year) on a tax-free basis. Contributions will be tax-deductible, and withdrawals to purchase a first home will be non-taxable. “Tax-free in; tax-free out,” they say. The handful of big banks we spoke with claim they’ll have FHSA account applications available on launch day, but not through all channels (some will only offer applications online as of April 1, and not via human advisors). Here’s an FHSA example from the Budget:

Here’s an overview from RBC that compares all the registered plans.

Anticlimax…

All in all, this budget was mostly a non-event for Canada’s mortgage market. And that may be a good thing.

Albeit, it was all crickets for hoped-for measures like raising the default insurance property value limit to $1.25 million. The government now seems to view this idea, a policy it promised a few years ago, as a stimulus measure. As a result, average-priced homes in cities like Toronto and Vancouver will remain accessible solely to uninsured borrowers, those blessed with big down payments.

(This article is courtesy of Mortgage Logic)

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. 

Housing Marketing Could Be Poised For a Spring Rebound

The Canadian Real Estate Association says home sales in February bounced 2.3% from the previous month. Homeowners and buyers were comforted by the guidance from the Bank of Canada that it would likely pause rate hikes for the first time in a year. 

The Canadian aggregate benchmark home price dropped 1.1% in February, the smallest month-to-month decline of rapid interest rate increases in the past year. The unprecedented surge in the overnight policy rate,  from a mere 25 bps to 450 bps, has not only slowed housing–the most interest-sensitive of all spending–but has now destabilized global financial markets. 

In the past week, three significant US regional financial institutions have failed, causing the Fed, the Federal Deposit Insurance Corporation and the Treasury to take dramatic action to assure customers that all money in both insured and uninsured deposits would be refunded and the Fed would provide a financial backstop to all financial institutions.

Stocks plunged on Monday as the flight to the safe haven of Treasuries and other government bonds drove shorter-term interest rates down by unprecedented amounts. With the US government’s reassurance that the failures would be ring-fenced, markets moderately reversed some of Monday’s movements.

But today, another bogeyman, Credit Suisse, rocked markets again, taking bank stocks and interest rates down even further. All it took was a few stern words from Credit Suisse Group AG’s biggest shareholder on Wednesday to spark a selloff that spread like wildfire across global markets. 

Credit Suisse’s shares plummeted 24% in the biggest one-day selloff on record. Its bonds fell to levels that signal deep financial distress, with securities due in 2026 dropping 20 cents to 67.5 cents on the dollar in New York. That puts their yield over 20 percentage points above US Treasuries.

For global investors still, on edge after the rapid-fire collapse of three regional US banks, the growing Credit Suisse crisis provided a new reason to sell risky assets and pile into the safety of government bonds. This kind of volatility unearths all the investors’ and institutions’ missteps. Panic selling is never a good thing, and traders are scrambling to safety, which means government bond yields plunge, gold prices surge, and households typically freeze all discretionary spending and significant investments. This, alone, can trigger a recession, even when labour markets are exceptionally tight and job vacancies are unusually high.

Canadian bank stocks have been sideswiped despite their much tighter regulatory supervision. Fears of contagion and recession persist. Job #1 for the central banks is to calm markets, putting inflation fighting on the back burner until fears have ceased.

Larry Fink, CEO of Blackrock, reminded us yesterday that previous cycles of rapid interest rate tightening “led to spectacular financial flameouts” like the bankruptcy of Orange County, Calif., in 1994, he wrote, and the savings and loan crisis of the 1980s and ’90s. “We don’t know yet whether the consequences of easy money and regulatory changes will cascade throughout the US regional banking sector (akin to the S.&L. crisis) with more seizures and shutdowns coming,” he said.

So it is against that backdrop that we discuss Canadian housing. The past year’s surge in borrowing costs triggered one of the record’s fastest declines in Canadian home prices. Sales were up in February, the markets tightened, and the month-over-month price decline slowed.

New Listings

The number of newly listed homes dropped 7.9% month-over-month in February, led by double-digit declines in several large markets, particularly in Ontario.

With new listings falling considerably and sales increasing in February, the sales-to-new listings ratio jumped to 58.4%, the tightest since last April. The long-term average for this measure is 55.1%.

There were 4.1 months of inventory on a national basis at the end of February 2023, down from 4.2 months at the end of January. It was the first time the measure had shown any sign of tightening since the fall of 2021. It’s also a whole month below its long-term average.

Home Prices

The Aggregate Composite MLS® Home Price Index (HPI) was down 1.1% month-over-month in February 2023, only about half the decline recorded the month before and the smallest month-over-month drop since last March.

The Aggregate Composite MLS® HPI sits 15.8% below its peak in February 2022. 

Looking across the country, prices are down from peak levels by more than they are nationally in most parts of Ontario and a few parts of British Columbia and down by less elsewhere. While prices have softened to some degree almost everywhere, Calgary, Regina, Saskatoon, and St. John’s stand out as markets where home prices are barely off their peaks. Prices began to stabilize last fall in the Maritimes. Some markets in Ontario seem to be doing the same now.

The table below shows the decline in MLS-HPI benchmark home prices in Canada and selected cities since prices peaked a year ago when the Bank of Canada began hiking interest rates. More details follow in the second table below. The most significant price dips are in the GTA, Ottawa, and the GVA, where the price gains were spectacular during the Covid-shutdown. 

Despite these significant declines, prices remain roughly 28% above pre-pandemic levels.

Bottom Line
Last month I wrote, “The Bank of Canada has promised to pause rate hikes assuming inflation continues to abate. We will not see any action in March. But the road to 2% inflation will be a bumpy one. I see no likelihood of rate cuts this year, and we might see further rate increases. Markets are pricing in additional tightening moves by the Fed. 

There is no guarantee that interest rates in Canada have peaked. We will be closely monitoring the labour market and consumer spending.”

Given the past week’s events, all bets are off regarding central bank policy until and unless market volatility abates and fears of a global financial crisis diminish dramatically. Although the overnight policy rates have not changed, market-driven interest rates have fallen precipitously, which implies the markets fear recession and uncontrolled mayhem. As I said earlier, job #1 for the Fed and other central banks now is to calm these fears. Until that happens, inflation-fighting is not even a close second. I hope it happens soon because what is happening now is not good for anyone.  

Judging from experience, this could ultimately be a monumental buying opportunity for the stocks of all the well-managed financial institutions out there. But beware, markets are impossible to time, and being too early can be as painful as missing out.

(This article is courtesy of the Sherry Cooper Assoc.)

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. 

Further Decline in Inflation in February Will Keep the Bank of Canada On Hold in April

All eyes will be on the Federal Reserve tomorrow when they decide whether to hold rates steady because of the banking crisis or raise the overnight rate by 25 basis points (bps). Before the run on Silicon Valley Bank, markets were betting the Fed would go a full 50 bps tomorrow, as Chairman Powell intimated to the House and Senate.

Since then, three bank failures in the US as well as the UBS absorption of troubled Credit Suisse, have caused interest rates to plummet, bank stocks to plunge, and credit conditions to tighten. Many worry that rate increases will exacerbate a volatile situation, but others believe the Fed should continue the inflation fight and use Fed lending to provide liquidity to financial institutions. 

Relative calm has been restored thanks to the provision of huge sums of emergency cash by lenders of last resort–the central banks–and some of the US industry’s strongest players.

While Canadian bank stocks have also been hit, the banks themselves are in far better shape than the weaker institutions in the US. Our banks are more tightly regulated, have much more plentiful Tier 1 capital, and their outstanding loans and depositors are far more diversified. 

This morning, Statistics Canada released the February Consumer Price Index (CPI). Headline inflation fell more than expected to 5.2% from 5.9% in January. This was the largest deceleration in the headline CPI since the beginning of the pandemic in April 2020.

The year-over-year deceleration in February 2023 was due to a base-year effect for the second consecutive month, which is attributable to a steep monthly increase in prices in February 2022 (+1.0%).

Excluding food and energy, prices were up 4.8% year over year in February 2023, following a 4.9% gain in January, while the all-items excluding mortgage interest cost rose 4.7% after increasing 5.4% in January.

On a monthly basis, the CPI was up 0.4% in February, following a 0.5% gain in January. Compared with January, Canadians paid more in mortgage interest costs in February, partially offset by a decline in energy prices. On a seasonally adjusted monthly basis, the CPI rose 0.1%.

While inflation has slowed in recent months, having increased by 1.2% compared with 6 months ago, prices remain elevated. Compared with 18 months ago, for example, inflation has increased by 8.3%.

Food prices continued to rise sharply–up 10.6% y/y, marking the seventh consecutive month of double-digit increases. Supply constraints amid unfavourable weather in growing regions and higher input costs such as animal feed, energy and packaging materials continue to put upward pressure on grocery prices.
Price growth for some food items such as cereal products (+14.8%), sugar and confectionary (+6.0%) and fish, seafood and other marine products (+7.4%) accelerated on a year-over-year basis in February. Prices for fruit juices were up 15.7% year over year in February, following a 5.2% gain in January. The increase was led by higher prices for orange juice, as the supply of oranges has been impacted by citrus greening disease and climate-related events, such as Hurricane Ian.

In February, energy prices fell 0.6% year over year, following a 5.4% increase in January. Gasoline prices (-4.7%) led the drop, the first yearly decline since January 2021. The year-over-year decrease in gasoline prices is partly the result of a base-year effect, as prices began to rise rapidly in the early months of 2022 during the Russian invasion of Ukraine.

Shelter costs rose at a slower pace year-over-year for the third consecutive month, rising 6.1% in February after an increase of 6.6% in January. The homeowners’ replacement cost index, related to the price of new homes, slowed on a year-over-year basis in February (+3.3%) compared with January (+4.3%). Other owned accommodation expenses (+0.2%), which include commissions on the sale of real estate, also decelerated in February. These movements reflect a general cooling of the housing market.

Conversely, the mortgage interest cost index increased at a faster rate year over year in February (+23.9%) compared with January (+21.2%), the fastest pace since July 1982. The increase occurred amid a higher interest rate environment.

Bottom Line

The Bank of Canada is no doubt delighted that inflation continues to cool. Canada’s inflation rate is low compared to the US at 6.0% last month, the UK at 10.1%, the Euro Area at 8.5%, and Australia at 7.2%.

The Bank was already in pause mode and will likely stay there when they meet again in April.

(This article is courtesy of the Sherry Cooper Assoc.)

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. 

Weathering a Turbulent Market

In spite of predictions to the contrary, COVID-19 did not bring the mortgage sector to a screeching halt. Throughout 2021, despite new virus variants and a roller coaster of lockdowns, the volume of mortgage deals kept brokers working overtime to keep up with the demand.

This year is shaping up to be a productive one with the same volume of business for brokers across the country. Arguably, several broader economic factors have coincided with the pandemic’s positive mortgage spinoffs, including continuing historically low mortgage rates, a lack of supply of housing inventory, and jaw-dropping housing appreciation in Canadian housing markets of all sizes.

As offers come across brokers’ desks without any contingencies and the requirement to work quickly to secure the best deal for their clients, to say that brokers from coast to coast have been kept busy is an understatement.

“If you had asked me back in 2019 what is something that could cause the collapse of the real estate market, I would have said a global pandemic,” says Daniel Patton, mortgage agent with BM Select and one of CMP’s Top 75 Brokers.

Add into the mix recent developments, including the backlog of supplies at major ports and disruptions to the supply chain as well as inflation hovering at levels not seen since the early 1990s, and brokers still feel very positive about the direction of the mortgage space in 2022.

The long-anticipated Bank of Canada announcement of a quarter of a percent increase to the overnight lending rate has not derailed broker enthusiasm. The flurry of interest in the mortgage space is expected to continue.

“Our real estate went crazy. People can say whatever they want about economics, but it is all about supply and demand, so I anticipate the sales continuing to be strong as inventory comes available,” Patton states.

Effective solutions

When asked how it feels to be recognized by CMP as a top mortgage performer in a field rife with competition, the winners could agree that it is a thrill just to be nominated among one’s peers.

“This is my 21st year of doing mortgages. I just would say that it’s really nice to be recognized and to have done so over my career and that all that hard work has paid off,” says Scott Brown, mortgage broker and owner at Ultimate Mortgage Group.

For Tracy Valko, broker-owner at Valko Financial, it’s an honor to be recognized for the hard work and dedication she puts into the industry. “I am always humbled and grateful for the brokerage to be recognized. It’s not just one individual, it’s us together. I would say that we are a family, and we have to do it together,” she says.

James Harrison, mortgage broker at Mortgages.ca and another top performer in 2022, remarks: “It feels great. We work so hard at what we do and to be recognized, and for our clients to see that we are recognized, is really great, too.”

Top qualities

The ability to navigate the sometimes harsh realities of the brokerage world is a skill that takes years to develop. Becoming a Top 75 Broker requires certain attributes to be brought to the mortgage table.

“It takes a lot of hard work. I know that sounds cliché, but it’s the truth. Also, it involves being proactive with clients rather than reactive,” says Collin Bruce, mortgage broker at DLC Mortgage Mentors.

Drew Donaldson, founder and principal broker at Donaldson Capital, says: “It’s a time-sensitive business. You have to be quick on your feet. You have to be fast and efficient.”

Other qualities that the Top 75 Brokers considered important are being responsive, patient, and willing to listen to their client’s needs.

“One thing that comes to mind is resilience. It’s not always the good times,” Clinton Wilkins, team leader at Centum Home Lenders, says. “In this industry, it can be very challenging with a lot of moving parts, so being organized is important as well.”

Successful approaches

The approach that each broker takes when dealing with their valued clients can vary. The winners provided insight into what approach works best for them to get the deal done while putting the client front and center.

“For us, the client approach is that we really try to have the same process for every client so that everyone gets the same positive experience from our team,” Chris Allard, mortgage broker with Smart Debt Mortgages, states. He adds that this experience is built around the first client phone call when the broker asks what the clients hope to achieve and what their long-term goals are.

Patton believes that being a top-performing broker means having a balance of sales and underwriting. “You have to be honest and direct with your client and in a fast-moving market it certainly helps to give direct answers,” he says.

Not to leave out the lending relationship, Donaldson drew attention to the approach needed to create a seamless lender submission.

“We have what’s called the Donaldson difference. One of the four pillars on which it rests is the key relationships that we have with our lending partners. It has taken 15-plus years to develop those relationships,” he explains.

Running the long race

When asked what lies ahead for 2022, the winners unanimously agree that despite recent rate hikes that have directly impacted variable rates, the mortgage race will not be slowing anytime soon.

“It’s a rising interest rate environment. People may be taking a more conservative approach and may pay a bit of a premium and lock in their rates with a fixed mortgage,” Donaldson predicts.

Patton adds that “although inventory may be low right now, I anticipate the sales to remain very strong because there is such a backdrop of buyers.”

And in Harrison’s view: “I don’t see rates skyrocketing. I think a lot of people will continue to refinance because most people are staying in their homes and wanting to be doing a major renovation or maybe buying a second property like an investment property.”

Their piece of winning advice for 2022?

“Believe in yourself and love yourself,” Valko concludes.

(This article is 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.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

Our team wanted to give you a big hello and hope you had a wonderful week. In case you missed it, we wanted to take a moment to share an article from Zolo, discussing the emerging housing trends in 2023 so far.

Some key findings from this report include that:

• 55% of Canadians create a budget before they buy a home
• 50% of Canadians save their down payment in their TFSA
• 47% of Canadians receive money from family and/or an inheritance to boost their down payment 

Our team can help strategize all of the above and below for you within our network. Please reach out to our team to discuss how to navigate your options.

We were also asked to provide our advice as a top industry expert facing the current housing market, some highlights include:

• Not shopping around for a mortgage (with a mortgage broker) is the costliest mistake anybody can possibly make
• Adding outside debt can reduce your ability to qualify (we can help with a strategy) 
• Reverse mortgages are becoming a popular method to provide help to their children

If you would like to read the entire article, you can click the image above.

As always, our team is always available to answer all your mortgage-related inquiries.

We hope you have a wonderful and warm weekend!

The Angela Calla Mortgage Team

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. 

According to the Canadian Real Estate Association, the Spring market is anticipating a drop in home prices edging down approximately 6% from 2022, putting the average home price at $662,103 in 2023. The downward trend stems from rising interest rates and continued uncertainty in the marketplace.

In some cases, sellers have taken their homes off the market in the hopes that prices will rise again; meanwhile, potential buyers are biding their time for interest rates to drop. Due to this, home prices may continue to see reductions throughout 2023, while interest rates are not expected to drop until 2024.

While not a particularly buyer-heavy market, there are still individuals who will be looking to make a move, upgrade/downgrade or simply relocate.

For those households who think they are on the purchasing end of the Spring market this season, here are five signs from Home Trust to know if you’re ready:

1. Your income is stable: For most first-time home buyers, purchasing a house indicates that you can make regular payments to service a mortgage. Accordingly, you should make sure you have a secure and steady flow of income to make these payments over the length of your home loan period. While this is often thought to mean that you work a full-time job, many self-employed Canadians also have stable incomes – and alternative lenders, such as Home Trust, are willing to listen to their unique financial situations.
    
2. You are ready with your down payment: Having enough money on hand for a down payment is important because the amount will impact the type of house you can buy, the amount you need to borrow and the range of financing options you qualify for.
    
3. You found an area you can grow in: Buying a house means putting down roots, so you need to make sure that you can buy a house in an area that suits your needs and lifestyle. You should also be able to envision yourself living in that area over the next five to 10 years.
    
4. You feel comfortable managing your debt: Paying for a house involves having the discipline and commitment to stick to a budget. Take some time to track your spending habits over a couple of months to find out if you are comfortable setting aside roughly 30% of your income to pay for your mortgage debt.
    
5. You have an emergency fund on hand: Owning a home means that unexpected home maintenance expenses, such as plumbing and electrical repairs, could eat into your budget. So having an emergency fund on hand to cover six months’ worth of expenses will allow you to cover these unforeseen costs.

If you feel that these signs point to ‘yes’ or you have more questions about purchasing (or selling) a home this Spring, don’t hesitate to reach out to me directly for expert mortgage advice!

(This article is courtesy of the DLC March Newsletter)

Angela Calla is an 18-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. 

Did you know? March is fraud awareness month in the mortgage industry, which makes this is a great time to talk about title insurance!

As our insurance experts, FCT is a leading provider of title insurance and has some helpful information for you: 

For those who don’t know, title fraud can impact both homebuyers and homeowners. Someone whose title has been stolen, or who purchased a fraudulently listed property has few options for recourse – and many never imagine this could happen to them.

Industry experts are urging homebuyers to purchase title insurance as part of closing. Tim Hudak, CEO of the Ontario Real Estate Association (OREA) recently described title insurance as “the best safeguard” for homebuyers.

While title insurance is still an option for homeowners after they take possession, even years later, the best time to purchase a title insurance policy is NOW before an issue like fraud is discovered.

“There’s no reason you shouldn’t be getting title insurance, just like you wouldn’t buy a house without property and casualty insurance,” says Daniela DeTommaso, President of FCT. When a homeowner with a title insurance policy learns their title has been stolen, they benefit from more than just their coverage.

“The title insurance company also has a duty to defend,” says Daniela. “That means that the minute we find out [title fraud] has happened, we step in and we protect [the insured]. We pay all of the costs.”

Those costs include the legal fees to restore a homeowner’s title, which can be in the tens of thousands, as well as the costs of investigating the fraud and handling all the legal processes.

“It’s not only compensating for that significant loss,” Daniela continues. “It’s also providing that peace of mind knowing that someone’s going to navigate this process for you, and any costs […] having to prove that you are who you say you are.”

If you aren’t insured yet, don’t wait for your home to make headlines. Protect yourself and your property with an existing homeowner’s title insurance policy from FCT.

(This article is courtesy of the DLC March Newsletter)

Angela Calla is an 18-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. 

New research shows that the bank of mom and dad or other family support is more important than ever for Canadians getting into the housing market.

The research comes from Zolo, a national real estate marketplace, which goes as far as to say borrowing from family is “becoming mandatory” to enter the market.

Zolo’s insights are based on a survey of homebuyers who purchased houses in 2022.

We’ve covered many stories about how long it would take to save up for a down payment in housing markets like Toronto and Vancouver, but family plays a huge part for many looking to skip that step.

Zolo found that 47% of Canadians receive money from family or an inheritance “to boost” their down payment. An additional 24% use their partner’s family’s money for a down payment.

Less surprising is that a large number of Canadians use borrowed money to buy homes, like through a line of credit or inheritance.

Mortgage expert Angela Calla told Zolo that it’s better to use family financial planning “and getting a gift from your parents as a part of an early inheritance” versus borrowing.

Another fascinating insight that probably is not very surprising to hear is that 49% of Gen Z browsers for properties on Instagram. This differs from other generations, like boomers, Gen Xers and millennials, who primarily use real estate listing websites.

One-quarter of respondents even said they browsed for homes via TikTok.

Zolo also said that millennials and Gen Z folk are “much more decisive” when it comes to knowing what they want.

Another interesting tidbit is what home buyers consider the most important rooms in the home. 30% of respondents said the living or family room was most important, followed by 20% who said the kitchen was most important, and 13% said bedrooms.

(This article is courtesy of the Daily Hive Vancouver)

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. 

Tip of the Week

The price is right, but the home needs a little TLC. That’s what Purchase Plus Improvements is for!

An appraisal outlining the current “as is” value and the “improved” value may be required. This often means a detailed list of improvements, including copies of the contracts outlining the scope of work & cost estimates.

If approved, then the full committed mortgage amount will be advanced to the solicitor at closing with instructions to hold back the cost of improvements until inspection by an approved appraiser confirms all work has been completed.

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.