If you are dreaming of your very own vacation home, there are ways to make it happen! Let me walk you through your options.

When it comes to taking on a vacation property, you will need to have a minimum down payment of 5% of the purchase price. If you are purchasing a non-winterized vacation home, or will not have year-round access, then you will be required to put down 10%.

You must also have sufficient credit score to qualify if not putting 20% down. In addition to the down payment, you will also need to pass the stress-test and prove that you can financially carry the mortgage of your existing live-in home and your new vacation home.

When purchasing a vacation home or property, most lenders will allow you to borrow money against the equity you have in your current home and use it as a down payment for a second home. This is done through mortgage refinancing, which means getting a re-evaluation on your home and then redoing your mortgage based on the current value. This will allow you to tap into the equity your home has built over the years, and pull out the extra funds for a down payment on your secondary property. Keep in mind, when using some of your current equity, it will increase the principal amount and the interest payments on your mortgage as the mortgage is now refinanced at a higher amount.

Another option to unlock your home equity is through a line of credit or a HELOC (Home Equity Line of Credit). This option allows you to borrow money using the equity in your property, with the property as collateral. A HELOC serves as a revolving line of credit to allow the borrower to access funds, as needed, letting you utilize as much (or as little) equity as required. In Canada, you are able to borrow up to 65% of your home’s value using this method. However, keep in mind, your HELOC balance AND current outstanding mortgage cannot exceed 80% of your home’s value when added together.

If you are ready to purchase a vacation property, I would love to help review your financial situation! I would be happy to take a look at your current mortgage, equity and review your options to help you find the best fit. The keys to success are right around the corner with a little bit of expert advice.

This article is from the May monthly 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 August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal 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. 

What is a reverse mortgage?

A reverse mortgage is an equity product available for those 55+ that allows you to tap into your equity without making a monthly payment.

They can be fairly conservative in how much they lend, and it’s based on age and property. The older the client, the higher the approved limit.

You never have to make any payments, the interest simply accrues and is paid back when you move/sell.

On average, a house appreciates 2.5%-3 per yr so this helps make up for the accruing interest, leaving clients with plenty of equity in the end.

Reasons to get a reverse mortgage:

Equity rich – All your retirement is tied up in the house, but you’re not ready to sell. Using the home as part of the financial plan, clients can preserve investments, pay less tax, and often have greater net worth in the end.

Helping family – Home values have risen, and often times the plan is to leave the house to children or grandchildren as an inheritance. A reverse mortgage is a way to access some of that inheritance money today, gift it now, enjoy the giving, and see your family benefit much earlier in life.

Purchasing a new home – Some clients are moving to that just right, final home, but finding they cost more than anticipated. A reverse mortgage can be used to buy a new home, allowing clients to afford a much higher priced home, or keep more cash on hand.

Aging parents needing home care – As we age, sometimes a little additional help is needed to stay in the home. Instead of selling and moving to a care home or assisted living, some clients prefer to stay in the house and have in-home care. A reverse mortgage is a great way to access the equity in the home, month by month, to pay for those care costs.

There are different ways to set up your reverse mortgage. You can pull all funds upfront, or you can have a line of credit that you pull from monthly like an allowance. And only pay interest once funds are used.

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 August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal 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 many Canadians who are looking to retire but currently facing high debt load and ongoing expenses, as well as reduced income, it can be a challenge. This is where the reverse mortgage can help!

This product is also a great option for anyone wanting to assist their elderly parents.

Instead of selling the home and moving them to a care home or assisted living, a reverse mortgage is a terrific way to access the equity in the home, month by month, to pay for in-home and ongoing care costs.

The goal of the reverse mortgage is to allow Canadians over 55 years to tap into the equity of their home, which assists in comfortable financial living. With a reverse mortgage, however, borrowers are not required to make regular payments. This allows them a considerable inflow of cash, without having to pay off what they owe! The only time payment will be required is when you sell or move out of your home.

Reverse mortgages are designed to allow you to access up to 55% of your home’s equity, thereby allowing you to convert your home equity into cash. This can be done as either a one-time lump sum payment, or you can choose to structure it to receive monthly payouts. Beyond being able to cash in on your home’s equity, a reverse mortgage has additional benefits including:

• No monthly mortgage payments
• No income or credit qualifications
• Very low / little paperwork required
• Title and ownership of property remain in homeowner’s name
• Flexible options to break term early if needed
• Penalty waived in the event of death or care home placement to preserve the estate

If you are struggling financially, or want to have a little extra equity on hand to pay off existing debts, gift money to family, expand your quality of life or simply increase your investment portfolio, contact me today! I would be happy to discuss the possibility of a reverse mortgage in further detail with you and ensure it is the best product to suit your needs.

This article is from the May monthly 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 August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal 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. 

With the Bank Of Canada expecting to raise interest rates another .50% you may feel the variable-rate rollercoaster is not worth riding anymore.

Certainty is not something that can be provided in an everchanging market, however, you do have options with your mortgage if you own your home.

If you do want to lock in your variable rate mortgage, we have put together a step-by-step process depending on your unique situation.

Please note: While this guideline includes the 3 most common lenders out there, the process would be the same for whichever lender you are with.

Here are answers to the 4 most common questions in our office this week.

1. Should I sell my house? I’m afraid I can’t afford the mortgage.

With current market supply issues, if you are comfortable in your home and it suits your lifestyle, we would recommend staying put and reviewing your finances to find a solution. Rental and purchase properties are suffering from an extreme shortage right now. Since the supply still hasn’t opened up, selling could lead to a more stressful and financially detrimental scenario, opposite of the desired result. If you are relocating, moving in with family can be considered a benefit and we recommend consulting with us to develop a financial plan to ensure you feel safe and secure.

2. Should I refinance early?

This will depend on your current mortgage amount, rate, lender, and current qualifications, which can be determined with a mortgage review.

3. What do I do if my mortgage is up for renewal?

Ensure you have a budget and plan in place. Let us help review your mortgage payments on the stress test (at a higher than the rate you pay) to ensure you feel secure with your options to pay off your mortgage faster and protect your equity. Selecting a different amortization to calculate your payment can help with cash flow and budgeting. It is recommended to ensure you have 6 months of emergency savings set aside so that when it’s time to prepare for your renewal, your equity can help provide security for your family in changing times.

4. Are there any mortgage options where I don’t have to make a payment? 

A Reverse Mortgage is a tool for those over 55 years old with over 50% equity in their homes that want to flip the switch and not make payments anymore. Instead, the equity in your home makes the payments. This helps your investments last longer and gives you access to capital. These equity payments are non-taxable and increase your cash flow since you no longer are using any income/pension you receive towards a mortgage payment. This can also be used to gift money to family, pay off outside debt, or do a home renovation.

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 August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal 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. 

In light of the recent Bank of Canada announcement, raising the interest on variable rate mortgages by 0.5%, we wanted to take the initiative prior to the next expected ones to provide the knowledge on how to find the available options of locking in your variable rate, should this be something you are considering. It’s expected at this snapshot in time that Prime will rise the next while to 3.95%, pre-pandemic levels.  No one can predict with certainty what will happen for sure. Right now, we know rates will go up, and if you want to lock into a fixed rate, it will be around 4% with your existing lender should you decide not to want to be in variable anymore.

Here is a link to our app if you want to see how those payments will look in advance.

Your lender can be reached by emailing them a request to lock-in.

If you email them to review the options, you will be provided with those options back via email and have 1-3 days to sign and send them back should you decide to lock-in.

Should you decide to continue to be in your variable, then you simply would not sign the papers.

Below is a list of lenders that we work with along with the email/phone number to contact them to begin this process:

1. Merix – customerservice@merixfinancial.com
2. First National – customer@firstnational.ca
3. Scotia Bank  – (Link to book an appointment)
4. Toronto Dominion Bank (TD) – (Link to book an appointment)
5. Dominion Lending Centre (DLC) – (Contact Page)
6. RMG – mortgagesupport@rmgmortgages.ca
7. MCAP – service@mcap.com

Copy and paste this email to them:

Subject line: Lock in Request (Your Name)

Hello,
Kindly send me my lock-in options
If you have any questions, please contact me directly at
Your Name and Phone Number/Email address/Property Address with the Mortgage in Question

At the Angela Calla Mortgage Team, we always believe in knowing all the options available to make an informed decision. If there is anything else we can help you with your mortgage, please don’t hesitate to reach out. If you do decide to lock in, please keep us posted so we can update our records.

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 August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal 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. 

Holy Smokes! Canadian Inflation Is At 6.7%

StatsCanada today reported that consumer prices rose a whopping 6.7% year-over-year in March, a full percentage point above the 5.7% reading the month before. Market-driven interest rates shot up on the news as the prospects increase for another half-point rise in the overnight rate when the Bank of Canada meets again on June 1.

There is no sugar-coating this. Bonds were walloped as the Government of Canada’s two-year yield shot up to 2.6%, the 5-year yield rose to 2.75%, and the 10-year yield spiked above 2.825% immediately following the data release. The 5-year yield–so crucial for setting the 5-year fixed mortgage rate–has nearly quadrupled over the past year. Inflationary pressure remained widespread in March, as prices rose across all eight major components. Prices increased against the backdrop of sustained price pressure in Canadian housing markets, substantial supply constraints and geopolitical conflict, which has affected energy, commodity, and agriculture markets. Further, employment continued to strengthen in March, as the unemployment rate fell to a record low. In March, average hourly wages for employees rose 3.4% y/y, raising the risk of wage-price spiralling.

Excluding gasoline, the Consumer Price Index (CPI) rose 5.5% year over year in March, the fastest pace since introducing the all-items excluding gasoline special aggregate in 1999, following a 4.7% gain in February.The CPI rose 1.4% in March, following a 1.0% gain in February on a monthly basis. This was the largest increase since January 1991, when the goods and services tax was introduced. On a seasonally adjusted monthly basis, the CPI rose 0.9% in March, matching the most significant increase on record.

Canadian March Home Sales Posted Their Biggest Decline Since June

Statistics released today by the Canadian Real Estate Association (CREA) show that rising interest rates were already dampening housing activity well before the Bank of Canada’s jumbo spike in the key policy rate in mid-April. National home sales fell back by 5.4% on a month-over-month basis in March. The decline puts activity back in line with where it had been since last fall (see chart below).

New Listings

The number of newly listed homes fell back by 5.5% on a month-over-month basis in March, following a jump in February. The monthly decline was led by Greater Vancouver, the Fraser Valley, Calgary and the GTA.

With sales and new listings falling in equal measure in March, the sales-to-new listings ratio stayed at 75.3% compared to 75.2% in February. The long-term average for the national sales-to-new listings ratio is 55.1%.

About two-thirds of local markets were seller’s markets based on the sales-to-new listings ratio is more than one standard deviation above its long-term mean in March 2022. The other third of local markets were in balanced market territory.

There were 1.8 months of inventory on a national basis at the end of March 2022 — up from a record-low of just 1.6 months in the previous three months. The long-term average for this measure is more than five months.

The Aggregate Composite MLS® HPI was up 1% on a month-over-month basis in March 2022 – a marked slowdown from the record 3.5% increase in February.

The non-seasonally adjusted Aggregate Composite MLS® HPI was up by 27.1% on a year-over-year basis in March. The actual (not seasonally adjusted) national average home price was $796,000 in March 2022, up 11.2% from last year’s same month.

Bottom Line

The March housing report is ancient history, as sharp increases in market-driven interest rates have changed the fundamentals. This report also precedes the 50 basis point hike in the overnight policy rate by the Bank of Canada. Anecdotal evidence thus far in April suggests that new listings have risen, and multiple bidding has nearly disappeared.

The rise in current fixed mortgage rates means that homebuyers must qualify for uninsured mortgages at the offered mortgage rate plus 200 bps–above the 5.25% qualifying rate in place since June 2021. This, no doubt will squeeze some buyers out of higher-priced markets.

The federal budget introduced some initiatives to help first-time homebuyers and encourage housing construction–but these measures are hitting roadblocks. Labour shortages are plaguing the construction industry, and the feds do not control zoning and planning restrictions but at the local government level. The ban on foreign resident purchases will likely have only a small impact, so the fundamental issue of a housing shortage remains the biggest impediment to more affordable housing in Canada.

This article is accredited to 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 August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal 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 Bank of Canada will be raising interest rates on variable-rate mortgages by 0.5%. What this means is that your monthly payments will increase by $26 per $100,000 on your mortgage if you are on a variable rate mortgage. Here is the Bank of Canada statement.

This comes as no surprise as Canadian inflation has been at historic highs as of late. Fixed rates have been rising more rapidly than prime rates over the past few weeks, meaning that qualifying rates have increased, as well as reduced the overall access to mortgage funds as rates return to pre-pandemic levels.

The very best planning advice we can give you is to make your mortgage payment today as if it were a fixed rate, this will avoid potential future payment shock and help you pay your mortgage off faster.

To see some examples that may help you decide the right balance of payment for your budget download our app HERE.

To gain a little more perspective on the fixed vs variable here is a Global News segment we did last month and a blog post in anticipation of today.

Regardless of whether you are fixed or variable, this is the time to pay close attention to your mortgage plan as we continue to venture into unknown waters. Our team is here to answer any questions you may have regarding your mortgage, whether it be a renewal, consolidating debt, or considerations for an upcoming purchase!

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 August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal 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. 

Deputy Prime Minister and Minister of Finance the Honourable Chrystia Freeland tabled the Government’s Budget on April 7, 2022. Highlights of the 2022 Budget include:

• Initiatives to support housing affordability
• Tax incentives to support small businesses
• Measures to address tax avoidance and aggressive tax planning
• Various international and cross-border tax measures
• Additional tax on financial institutions

Join MNP’s Senior Vice President, Tax Services Am Lidder as she provides highlights from the Government’s 2022 Federal Budget Summary, and then read the detailed summary in the link below.

You can read the full report at MNP

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 August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal 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 federal budget promises $10 billion to make housing more affordable. Measures include tax credits for a variety of items, but the big ones, at least to me are:

1. A two-year ban on foreign buyers
2. Sales taxes on assignment sales
3. No principal residence exemption for properties bought and sold within 12 months
4. Multigenerational Home Renovation Tax Credit

This is a refundable tax credit for Canadians who are taking home building into their own hands. Families who are constructing a secondary suite for a senior or adult with a disability would be able to claim 15 percent of up to $50,000 in eligible renovation and building costs, resulting in up to $7,500 worth of savings.

1. Tax-Free First Home Savings Account

Starting in 2023, first-time homebuyers would be able to save up to $40,000 in a new account. As with a registered retirement savings plan, contributions – in this case, up to a maximum of $8,000 a year – would be tax-deductible. And, as with a tax-free savings account, withdrawals would be tax-free. Investment growth inside the account would also be tax-free.

1. Doubling the First-Time Home Buyers’ Tax Credit: First-time buyers who’ve purchased a property on or after Jan. 1 would be able to claim $10,000 – up from the current $5,000 – which would double the maximum non-refundable tax rebate from $750 to $1,500.
2. Doubling the home accessibility tax credit: Seniors would be able to claim a maximum of $20,000 worth of expenses for upgrades such as walk-in bathtubs and wheelchair ramps that make their homes more accessible. The new ceiling would be double the current cap on eligible expenses and would result in a maximum tax credit of $3,000.

I should stress these are not effective yet, simply announced. No doubt this will result in a few changes in the real estate market, with more to come over the next few weeks. Expect to hear more on, the cooling-off period and increases for both variable, fixed, and qualifying interest rates.

Details of the budget are available online, but I found this article from the Globe and Mail to provide a good summary – Here’s how the 2022 federal budget affects home buyers and consumers – The Globe and Mail

If you or a loved one have a mortgage up for renewal, debt outside your mortgage to consolidate, a home renovation project or an upcoming home purchase coming up, please email callateam@countoncalla.ca to get started on reviewing your options.

Angela Calla

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 August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal 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.