New mortgage data is offering a snapshot of where B.C. homeowners are getting their first foot into homeownership and how recent interest rate hikes are weighing down younger people more than others.

“It just tells you that these very, very substantial interest rate increases disproportionately affect the people who are struggling the most to begin with,” said Andrey Pavlov, a professor of finance at Simon Fraser University.

Cities on the periphery of large census metropolitan areas, who have a higher percentage of younger and new homeowners, have higher numbers of mortgage holders, according to Statistics Canada census data provided to Glacier Media by Andy Yan, director of Simon Fraser University’s City Program.

“This is reflective of particular demographic trends, but then also of particular financial trends, especially when it comes to interest rates,” Yan said.

Throughout the province, 58 per cent of homeowners have a mortgage versus the 42 per cent of homeowners who are mortgage-free.

The three communities in B.C. with the highest percentages of mortgage holders are Fort St. John, the City of Langley and Surrey. 

Fort St. John has by far the highest proportion of mortgages, with 76 per cent of homeowners being mortgage holders.

In comparison, only 44 per cent of West Vancouver homeowners have a mortgage, the lowest percentage in the province. The regional district of Powell River is second with 46 per cent and Sechelt is third with 47 per cent.

The distribution across the data is “striking,” said Pavlov. 

Those areas with higher home prices, like West Vancouver, have lower percentages of mortgage holders.

Many of the homeowners who purchased homes in that area, did so a “long time ago” and don’t have a mortgage anymore, said Pavlov.

“But if you look at the places that have a high percentage of mortgage holders, areas like Surrey, Port Coquitlam, New Westminster, Abbotsford, those are the relatively more affordable areas of the Lower Mainland,” he said. 

“It really shows the impact on younger people, and in a way lower-income people, because those are the people, through no fault of their own, they are now impacted more from interest rates than the average person,” he said. 

To compare, in the City of Surrey, where 68 per cent of homeowners have a mortgage, there are 72,580 people between the ages of 30 and 39, according to Statistics Canada. In West Vancouver, there are only 2,615 people within that age group. 

“It ties into historic patterns of getting on the housing ladder. That if you’re young, if you’re a young household trying to step into housing ownership, that you buy in the municipalities outside of central cities,” Yan said. 

In addition, for communities that are located more eastward in the Lower Mainland, it is clear that there are more homeowners with mortgages, he added.

“There are indeed cities with, what one might call, high levels of mortgage-free homes. And then, of course, other areas that have high levels of mortgaged homes. And they’re two stories on the same coin. All through which what we don’t know, is what will happen in a prolonged, not even high interest, normal interest situation,” Yan said. 

These periphery cities tend to rely more on personal vehicles for transportation rather than public transit. According to TransLink’s Travel Diary survey, the farther a suburban municipality is from the City of Vancouver, the higher the total daily kilometres travelled by driver per capita.

“If you look at some of these communities that have high mortgage levels, you will also look at those that are perhaps more car dependent than others,” said Yan. 

“I think that there is a fair argument about the role of public transit as a means of stabilizing household costs and household affordability.” 

The data provided by Yan does not include information on the depth of outstanding mortgages, but still provides a clear look into “a very distinct pattern with the central cities and with those that are on the periphery,” he said. 

(This article is courtesy of Business In Vancouver) 

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. 

We were interviewed by the Steele and Vance show recently to speak on the Coromandel $700 million credit protection development. This was no doubt a result of the current economic climate and a sign of caution moving forward with pre-sale homes and the development of housing in the Lower Mainland as a whole.

Here is the full video below:

As well, if you would like to learn more, we have another article posted HERE which goes into more detail on the whole situation

The Angela Calla Mortgage Team

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. 

Big hello from the Angela Calla Team! We wanted to give a quick reminder that March 1^st is the to contribute to your RSPs. This is significant because of the potential tax benefits you can get, based on your income bracket, such as reducing your overall taxable income or even seeing a tax refund.

In our upcoming Mortgage Planning Webinar, we discuss contributions to RSPs, as a viable option for intergenerational finance or mortgage planning. For example, the money saved or refunded back can be utilized to help pay off existing debt or put aside for future use, such as a gift to one’s children that we often see in today’s market.

Given the current inflation rates, many may feel that it is beyond their means to contribute to an RSP. If that is the case, our team would be happy to make introductions to financial planning partners whom we work with closely to put together a budget or plan that can get your money working for you in the best places.

The Angela Calla Team

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. 

We were recently invited on the Jill Bennett show to discuss the recent news that Coromandel Properties, a major housing developer in Vancouver, is seeking creditor protection for over $700 million.

There are a few things to note about this recent development. However, what is most important to understand about this situation, and even all pre-sale property purchases, is that the most important thing when it comes to pre-sale is the disclosure statements signed at the beginning. The disclosure statement essentially acts as a contract, which lay out the terms of the purchase, what is expected to be received by the end, and the time frame development will roughly take. Presale properties generally have not broke ground yet and are expected to be done in a few months to a few years. As well, it is often the case that a certain number of presales are to be sold before the project can even get approved to move forward. Fortunately for potential investors and homebuyers, Canadians within BC are very well protected when purchasing a pre-sale, and deposits put down are protected in trust by the government.

But even with this in place, it is clear that the news about Coromandel is evidence of the effects of the recent rate hikes and inflation, and that this shouldn’t be seen as a single isolated event. We should expect that the rate of inflation as of late affects everyone.

If you have 10 minutes to spare, you can listen to the whole interview HERE.

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. 

When inflation goes up, the value of your money goes down.

Inflation is like a dripping tap. It may look like barely any water is coming out. But it’s amazing how it adds up over time.

Say you put $50K under your mattress tonight. If inflation averages 3% per year – and you raid your mattress after 10 years to spend the $$$, it would only be worth $37,000 at present value – because of the inflated costs of goods and services. If you wait 20 years, it would be worth only $27,000 at present value, etc. 

Inflation isn’t 3%  🙁 and if you feel it’s time you secured your savings, please give your advisor a call.  If you do not have one, please feel free to reach out to angela@countoncalla.ca  as I would be happy to make an introduction to an associate that can meet in person, over zoom or on the phone.

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. 

Dr. Tracy Thomas has built a career out of coaching celebrities, CEOs, professional athletes, and other high-performing individuals.

The psychologist and author, who started her coaching business 12 years ago, earned over $1 million just in 2021 alone. She’s also built a seven-figure net worth, thanks to high earnings coupled with consistent saving and investing. Insider verified these details by viewing tax forms and bank account statements.

“I have accumulated a lot, and I’ve also invested a lot,” she told Insider.

Thomas has been saving and investing a portion of her income since she started her career three decades ago, she said. However, she hesitates to use the word “saving.”

The term connotes “deprivation of the things you really want to do in the moment,” she explained. “It’s  not very attractive or glamorous.”

Instead of thinking you need to “save” your money, tell yourself that you’re “accumulating wealth” or “building wealth,” she advised.

Similarly, replace the word “budgeting” with “allocating,” she added. Budgeting implies restriction — having to cut something out of your life. Instead, frame it as: You’re allocating money for future goals or purchases, like a home, car, or retirement.

This is the type of language that Thomas and her clients use, she said: “They’re not ‘budgeting’ their money — that’s a scarcity mindset. They’re allocating or investing their resources. They’re allocating resources into some of their monthly entertainment; they’re investing into their wardrobe; they’re investing into their future lake house.”

Reframing your thinking and using what she calls “wealth language” may have a greater impact than you think. It helps to not only re-establish your relationship with money, but shifts thinking from a “scarcity” mindset to one of abundance.

For example, “If you say, ‘I’m building wealth,’ the wording of that in your own psyche already starts to produce way more wealth, because the self follows whatever the directions are that you’re giving it,” said Thomas. “It’s similar to when someone says, ‘I’ve got bad news’ or, ‘I’ve got great news,’ and immediately your chemistry shifts, because you’re following those directions.”

Success coach and author Jen Sincero offers similar advice in her book, “You Are a Badass at Making Money.”

“If you’re broke or not where you want to be financially, you can be sure that your language could use an upgrade,” writes Sincero.

Oftentimes, what you say reveals your true thoughts and beliefs about money. She highlights specific phrases that may seem harmless but can actually be limiting and hold you back from building wealth. Here are six common ones:

• “I want” is another way of saying “I lack”
• “I wish” is another way of saying “I’m not in control”
• “I need” is another way of saying “I lack”
• “I can’t” is self-explanatory
• “I hope” implies it might happen or it might not
• “I should” implies maybe you won’t or don’t want to

Try using this language instead, says Sincero:

• “I have”
• “I create”
• “I’m grateful for”
• “I enjoy”
• “I can”
• “I choose”

“Make the commitment to become aware of your language,” writes Sincero. “Get practiced at taking deep breaths before you speak. This will give you the space to stop, notice what was about to come out of your mouth, and course correct if needed.”

(This article is courtesy of Business Insider)

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. 

Today’s Labour Force Survey (LFS) for January was much stronger than expected, once again calling into question how long the Bank of Canada’s rate pause will last. This report showed no evidence that the labour market is slowing in response to the vast and rapid runup in interest rates. 

Employment surged by 150,000–ten times more than expected–and most of the gain was in full-time jobs. The employment rate has returned to pre-pandemic levels. Employment rates among people 55 to 64 have been on a solid upward trend since the summer of 2022, mirroring the rise in employment over that period observed among most demographic groups.

Immigration remains a vital factor in hiring. According to the latest population estimates, in the third quarter of 2022, Canada’s population grew the fastest in over 50 years, mainly driven by an increase in non-permanent residents. In the Labour Force Survey, non-permanent residents represent the majority of a larger group, including those who were not born in Canada and have never been landed immigrants. Non-permanent residents can hold various kinds of work, study, or residence permits. On a year-over-year basis, employment for those not born in Canada and who have never been a landed immigrant was up 13.3% (+79,000) in January, compared with growth in total employment of 2.8% (+536,000).

Average hourly wages rose 4.5% on a year-over-year basis in January, down from 4.8% in December. This is good news for the inflation outlook, but it remains much above the 2% target. Year-over-year wage growth reached 5.0% in June 2022 and peaked at 5.8% in November (not seasonally adjusted).

The unemployment rate remained near a record low, holding steady at 5.0% in January, just shy of the record-low 4.9% in June and July last year. 

Employment growth was most robust in wholesale and retail trade, healthcare, education, other services and construction.

Bottom Line

The Canadian jobs market is showing no signs of slowing. This has to make the Bank of Canada at least a bit nervous. The US jobs market data in January was also robust, and the Fed Chairman, Jay Powell, has assured markets that interest rates are likely to rise further. 

This is the last jobs report before the Bank of Canada meets again on March 8. The CPI data for January will be released on February 21 and will be the primary factor determ

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

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. 

For those who celebrate Family Day, we thought we would highlight some ideas for special things you can do with your loved ones, and remind them how much you care!

From crafts and cooking to volunteer work or exercise classes, below are a few ways you can celebrate Family Day this year:

• Cook a Meal Together: From making mini personalized pizzas to cooking up a brand-new recipe or baking something delicious, the kitchen is a great space for family time and making fun memories!
• Get Crafty: Time to break out the glitter, glue and fun! Set up a craft station at your house this Family Day to entertain younger children – and reawaken your inner child! Don’t be afraid to get messy and create something fabulous.
• Volunteer: A great way to make an impact (and bond with your family while you’re at it) is to volunteer your time together! Consider reaching out to a local organization or finding an event, such as a park clean-up, to participate in.
• Try an Exercise Class: Want to enjoy your family and get a little exercise while you’re at it? Try joining a ZUMBA workout or an online exercise class! Not only is this a fun activity you can do with your kids from home, but it is a great way to teach them about health and start setting up healthy habits for life.
• Record a Message: Sometimes, the entire family isn’t able to get together but recording a message together and sending it to those aunts, uncles and grandparents who live elsewhere is a great way to celebrate your family no matter where they are in the world.

No matter how you spend it, I hope you have a wonderful Family Day and I wish you and yours the best to come.

(Courtesy of the DLC February 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. 

Even bond traders and economists are stumped about what the next few years will bring. The repercussions of a global economy that stopped suddenly, shed millions of jobs and initially contracted 30% only to rebound in a flash on the back of free-money government programs are still being felt.

Predicting where the economy goes from here risks taking comfort in spurious accuracy. We’ve never experienced a similar set of circumstances. With hindsight, we now see that policymakers have made severe errors—taking interest rates to unprecedented lows and flooding the system with massive fiscal stimulus has precipitated global inflation; home prices in Canada surged 50% in the three years following the pandemic; variable-rate mortgages were much cheaper than fixed-rate loans as the central bank cut overnight rates to 25 basis points.

The volume of mortgage originations surged, with a record proportion, in VRMs. Now many borrowers have hit their trigger points. The banks allow the amortization of rising interest payments owed, easing the near-term pressure on borrowers. Those with adjustable-rate loans have seen their monthly payments rise seven consecutive times, with likely another rate hike next week. This, in addition to inflation, has reduced household purchasing power. Many are hoping that interest rates fall to pre-COVID levels soon.

Initially, the central banks argued that inflation was transitory. Many are betting that the old forces that worked to keep inflation under control for years would reassert themselves. The federal banking regulator is now proposing additional restrictions on mortgage lending to highly indebted households.

We hope for the best but must prepare for a slow return to 2% inflation. Home prices have fallen but are still up more than 35% from pre-pandemic levels. Labour markets are still robust, but a slowdown is inevitable. This will be a transition year with little likelihood of interest rate cuts. The Bank of Canada will pause soon to see if the lagged effects of higher rates further reduce inflation. Few believe the 2% target will be hit this year or next. The benchmark policy rate, now at 4.25% will not return to its pre-COVID level of 1.75%.

(This article is courtesy of the DLC February 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. 

Canadians believe they will need to save up $1.7 million to retire, up 20 per cent from 2020, according to a study published by BMO Financial Group on Tuesday.

“While the anticipated headwinds in 2023 will understandably prompt concerns about how inflation and interest rates will affect our finances, Canadians remain resilient and are taking proactive measures to protect and invest in their retirement nest egg,” said Nicole Ow, the head of retail investments at BMO.

The report said Canadians are prioritizing retirement savings as both contributions and account holdings have increased from the previous year. The national average amount held in Registered Retirement Savings Plan (RRSP) increased two per cent to $144,613 in 2022, while almost half of Canadians said they’ve contributed to their RRSPs for the tax year.

However, despite believing they need to save more money, only 44 per cent of Canadians are confident they will have enough to retire as planned, the study said. This figure represents a 10 per cent decrease from 2020.

BMO said 74 per cent of those surveyed said they are concerned about how current economic conditions will affect their financial situation, while 59 per cent say those conditions are making them less confident of meeting their retirement goals.

Inflation hit a four-decade high of 8.1 per cent in the summer of 2022 but fell to 6.3 per cent in December and is expected to decline further by the end of this year, according to BMO Economics. The sharp increase in CPI in 2022 exceeded wage gains and resulted in a significant loss of most families’ purchasing power, it said.

As for retirement planning, the survey said Canadians take different approaches, including 22 per cent planning to retire at between the ages of 60 and 69 with an average age of 62.

Meanwhile, among those who had experienced a major life event, such as starting a family, moving homes or starting a new business, since the beginning of the pandemic, 20 per cent had experienced a loss of income and nine per cent had to make a large payment.

The study added that 69 per cent of Canadians believe the state of the economy has affected the amount they are saving, and 60 per cent say it has affected the money they are investing.

Canadians can look to financial advisers to help them remain focused on their financial goals during disruptions, major life events and uncertainty, Ow said.

The BMO survey, conducted by Pollara Strategic Insights, surveyed 1,500 adult Canadians online between Nov. 4 and 7, 2022. The margin of error for a probability sample of this size is ± 2.5 per cent, 19 times out of 20.

(This article is courtesy of the Financial Post)

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.