July 2024 Newsletter

General Angela Calla 2 Jul

Welcome to the July issue of my monthly newsletter!

Things are starting to heat up as we head into July! For those first-time buyers looking to purchase a home, I have all the details for you below! For those other homeowners hoping to stay cool and enjoy their spaces this season, scroll down for tips on how to turn your backyard into a staycation paradise! Have a great summer!

Entering the Housing Market

With the first Bank of Canada rate drop having occurred in June, many individuals are looking at the housing market with renewed vigor and an expectation that rates will continue to come down to a more sustainable level.

If you are someone who is considering entering the housing market this summer, there are a few things you should keep in mind:

Determine Your Budget: Download my app from Google Play or the Apple iStore to help you calculate mortgage payments, affordability, the income required to qualify, and even estimate your closing costs! It also allows you to connect directly with me through the app so that I can answer any questions you have right in the palm of your hand.
Save For a Down Payment: Your typical down payment should be at least 5% of the purchase price, though 20% down is preferable as anything below that requires default insurance. Your down payment can be done through your own savings account or RRSP’s.

  • Thanks to the Federal Government’s Home Buyer’s Plan, first-time homebuyers can leverage up to $60,000 from their RRSPs (maximum of $120,000 for a couple).
  • PRO TIP: The First Home Savings Account (FHSA) is specifically designed to help first-time homebuyers save for their down payment without having to pay taxes on the interest earned on their savings.

Take Advantage of First-Time Buyer Programs: Did you know? First-time home buyers are eligible for an exemption, reducing the amount of property transfer tax paid, depending on the property’s value.

  • PRO TIP: In addition, Ontario, British Columbia, Prince Edward Island, and the City of Toronto offer land transfer tax rebates for first-time homebuyers.

Get Pre-Approved: This means that a lender has stated (in writing) that you qualify for a mortgage and what amount, based on submitted documentation of your current income and credit history. A pre-approval usually specifies a term, interest rate, and mortgage amount and is typically valid for a brief period, assuming various conditions are met.

There are a few benefits to pre-approval such as:

  • It confirms the maximum amount you can afford to spend.
  • It can secure you an interest rate for 90-120 while you shop for your new home
  • It lets the seller know that securing financing should not be an issue. This is extremely important for competitive markets where lots of offers may be coming in.

Understand the Closing Costs: Closing costs are a one-time fee associated with the sale of a home and are separate from the mortgage insurance and down payment. Typically, these costs range from 1.5-4% of the purchase price, depending on your location. Factoring these costs into your maximum budget can help you narrow down an entirely affordable home and ensure future financial stability and security.

Here are a few closing costs to keep an eye out for:

  • Land Transfer Tax: This is calculated as a percentage of the purchase price of your home, with the amount varying in each province. Some cities, such as Toronto, also have a municipal LTT.
  • Legal Fees and Disbursements: You can expect to incur a minimum of $500 (plus GST/HST) on legal fees for the preparation and recording of official documents.
  • Title Insurance: Most lenders require title insurance to protect against losses in the event of a property ownership dispute. This is purchased through your lawyer/notary and is typically $300 or more.
  • PST on CMHC Insurance: Though CMHC insurance itself is financed through the mortgage, PST on the insurance is typically paid at the lawyers and sometimes deducted from your advance.
  • Home Inspection Fee: A home inspection is highly recommended as a condition of your Offer to Purchase to prevent any future surprises. This can cost around $500.
  • Appraisal Fee: An appraisal is performed to certify the lender of the resale value of the home in the case you default on the mortgage. The cost is usually $400 – $600 but is typically covered by the lender.
  • Property Insurance: Property insurance covers the cost of replacing your home and its contents, and must be in place on closing day. This is paid in monthly or annual premiums.
  • Prepaid Utility Bills: You may need to reimburse the previous owner of your property for prepaid costs such as property taxes, utilities, and so forth.
  • Property Taxes: Property taxes are due on an annual basis and are calculated as a percentage of the home value and vary by municipality. You also may need to reimburse the previous property owner if he/she has already paid property taxes for the full year.

Getting Proper Coverage: Purchasing a home is likely the largest investment you will make, and you want to ensure it is protected.

Various insurance items can be obtained for your home, including:

  • Title Insurance: Required by most lenders to protect against losses should a property ownership dispute arise. This insurance is done through your lawyer/notary and typically runs $100-$300.
  • Mortgage Protection Insurance: An optional debt replacement that protects your family should anything happen in the future. Many homeowners believe they are covered through their life insurance policy, but the Manulife Mortgage Protection Plan is different. Before closing, it’s important to look at the costs and coverage for you!
  • Property & Fire Insurance: Mandatory and needs to be arranged before your closing appointment. Not sure how much to budget for? Get quotes from various insurance companies! Your lawyer/notary or myself can provide recommendations
  • Default Insurance: Only required if you purchase a house with less than a 20% down payment.

Whether you’re looking at a condo, townhouse, rancher, or a two-story property, there is nothing quite like your first home! However, the mortgage process can be intimidating – and that’s where I come in! If you’re looking to get started on your home-buying journey, don’t hesitate to reach out to me today.

5 Ways to Turn Your Home into a Staycation Paradise

We all invest a lot into our homes, so we want to make sure we are enjoying them to the fullest all year long.

As we head into the prime of summer, there is no better time to update your space to turn it into the perfect staycation paradise so that you can fully enjoy the season!

Here are my top 5 tips for creating that backyard oasis:

  1. Expand Your Outdoor Entertaining Area: Take your outdoor space to the next level by adding amenities for entertaining. Consider installing an outdoor kitchen or bar area complete with a grill, refrigerator, and seating area. Adding a pergola or canopy can provide shade and shelter, while outdoor speakers and a fire pit create ambiance for evening gatherings under the stars.
  2. Incorporate Relaxation Zones: Create multiple relaxation zones throughout your home to cater to different activities and moods. Designate a cozy corner with plush seating and soft lighting for reading or meditation. Set up a hammock or hanging chair in the backyard for afternoon naps or stargazing. Incorporate a spa-like bathroom retreat with a luxurious bathtub, candles, and soothing music for a pampering escape.
  3. Embrace Indoor-Outdoor Living: Maximize the connection between your indoor and outdoor spaces to blur the boundaries and create a seamless flow. Install sliding glass doors or folding patio doors to open up your living areas to the backyard, allowing for easy access and natural ventilation. Arrange indoor furniture to face outdoor views and encourage indoor-outdoor socializing.
  4. Infuse Tropical Vibes: Bring the vacation vibes home by incorporating tropical elements into your decor. Add pops of vibrant colors, tropical patterns, and lush greenery throughout your home. Hang palm leaf or bamboo curtains, display tropical fruits in bowls, and accessorize with seashells and driftwood for a breezy, island-inspired ambiance.
  5. Curate Outdoor Activities: Make the most of your outdoor space by curating a variety of activities to enjoy during your staycation. Set up a mini-golf course, bean bag toss, or giant Jenga for backyard games. Create a movie night under the stars with a projector and outdoor screen. Arrange a DIY spa day with facials, massages, and foot baths for a rejuvenating retreat at home.

By incorporating these ideas into your home and yard, you can transform your space into a paradise that grants you relaxation, entertainment, and rejuvenation all summer!

Economic Insights from Dr. Sherry Cooper

The Bank of Canada finally began an easing cycle on June 5, taking their overnight policy rate down 25 bps to 4.75%–the first major central bank to do so. The housing market has languished over the past year with extremely weak affordability.

The Multiple-Listing Service Home Price Index fell again in May and is now down 2.4% year-over-year and is off 14.4% from the early 2022 peak when the overnight rate was a mere 25 basis points. Average transaction prices are down 4% y/y and off nearly 15% from the high.

Except for Calgary, housing markets across the country are in a buyers’ market as inventories of active listings have risen and sales have slowed. Calgary prices were up just under 10% y/y in May, pushing new record highs by the month. In the meantime, Vancouver, Toronto, and Montreal prices are all flat or down from a year ago, and they are still tucked below the levels seen at the early 2022 high.

The significant drivers in Calgary’s outperformance have been more substantial population growth (juiced by interprovincial inflows), better affordability, and valuations that might make some sense for investors.

Even with their lackluster performance since the Bank of Canada began hiking interest rates in March 2022, home prices are still high, having tripled in the past two decades, posting an average 5.7% annual rise, while inflation averaged only 2.2% per year over the same period.

Moreover, the total return on the Toronto Stock Exchange over the same period has been much higher still, averaging 7.9% annually over the past two decades. Despite the recent mini selloff in stocks, the TSX has boasted a more robust return than housing over time. And the US stock market has significantly outperformed the TSX.

Of course, there are significant differences between these two asset classes. Stocks are passive investments that do not provide a place to live or require repairs and maintenance. Housing is more than just a financial investment; it is a lifestyle choice that provides the necessary shelter.

The Bank of Canada will continue to lower interest rates as inflation reaches its 2% target. We expect the overnight rate to fall to about 3% by the end of the easing cycle. But even with only one quarter-point rate cut, bond yields have already fallen significantly in anticipation.

Many mortgage lenders, including three of Canada’s Big Six banks, are slashing fixed mortgage rates, a welcome development for those facing renewal in the coming months. Lenders have already started trimming rates in the wake of a nearly 40-basis-point drop in bond yields, which typically leads fixed mortgage rate pricing.

Over 70% of outstanding mortgages will be renewed within two years. Falling mortgage rates could help soften the payment shock expected for the estimated 2.2 million mortgages that will be renewing at higher rates in the next two years.

But just because rates are falling doesn’t mean all lenders will offer equally low rates in their renewal letters. Typically, they don’t just hand out their especially low rates. That’s where a mortgage broker provides real value, educating borrowers about alternative options, which can be used to haggle a better rate even if they decide not to switch lenders.

For insurable mortgages, the borrower does not need to re-qualify when switching lenders. However, for uninsured mortgage switches, OSFI head Peter Routledge recently rejected renewed calls to remove the mortgage stress test for federally regulated lenders. Knowing your options to improve your bargaining power with your existing lender still pays.

There is a record number of resale condos on the market, and new construction is at a record high. While there remains a longer-term shortage of affordable housing for rent and purchase, it will probably be another year before markets equilibrate and sellers have the advantage.

Housing activity has likely bottomed and will increase as interest rates fall.

 


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. 

Canadian CPI Inflation Rose in May, Reducing the Chances of a July Rate Cut

General Angela Calla 25 Jun

Canadian Inflation Rose In May, Surprising Markets

Inflation unexpectedly rose in May, disappointing the Bank of Canada as it deliberates the possibility of another rate cut next month.

The Consumer Price Index (CPI) rose 2.9% in May from a year ago, up from a 2.7% reading in April. This increase primarily reflects higher prices for services and, to a lesser extent, food. According to a Bloomberg survey, economists had expected 2.6% inflation last month.

Cellular services, travel tours, rent, and air transportation boosted service prices by 4.6% year-over-year (y/y) in May, up sharply from the 4.2% rise in April. Price growth for goods remained at 1%, although grocery prices rose more rapidly.

Monthly, the CPI index climbed 0.6% compared to expectations for a 0.3% gain and up from 0.5% in April. On a seasonally adjusted basis,  inflation rose 0.3%.

 

The Bank of Canada’s preferred measures of core inflation, the trim and median core rates, excludes the more volatile price movements to assess the level of underlying inflation. The CPI trim accelerated to 2.9% in May, following a downwardly revised 2.8% rise the previous month. The CPI median rose two ticks to 2.8%. Both measures of core inflation surprised economists on the high side.

Shelter costs have been a massive component of inflation this cycle. In May, rent rose a whopping 0.9%, lifting the yearly rise to 8.9% y/y, the second largest contributor to annual inflation. The single most significant inflation driver–mortgage interest costs–ticked down a bit to 0.8% m/m, reducing the yearly pace to 23.3%. It peaked above 30% last year. Excluding shelter, inflation is rising 1.5% y/y, up from 1.2% last month.

 

Bottom Line

Today’s inflation reading was undoubtedly a disappointment for the Bank of Canada, and it reduces the chances of another rate cut when they meet again on July 24. However, the June inflation data will be released on July 16. Barring a significant drop in June inflation, the next interest rate cut will likely be at the September meeting. That’s not good for the housing market, which has slowed to a crawl in recent months. The decline in mortgage rates proceeds as market forces drive down bond yields. Canada’s labour market is slowing as the jobless rate ticks up. Tiff Macklem said yesterday that he did not expect the unemployment rate to rise significantly further this cycle.

Interest rate cuts will be more gradual because rapid population growth has boosted economic activity, forestalling a recession and adding to inflationary pressure. The central bank’s overnight policy rate, now at 4.75%, will gradually move to 3.0% by the end of next year.

Article courtesy of Dr. Sherry Cooper, Chief Economist, DLC


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. 

Terry Fox Run – September 15, 2024

General Angela Calla 21 Jun

Port Moody Welcomes Back the Terry Fox Run on September 15th, 2024

After a long hiatus due to the COVID-19 pandemic, the beloved Terry Fox Run is making its triumphant return to Port Moody on September 15th, 2024. This cherished event, which brings together residents and businesses in a spirit of community and philanthropy, has been eagerly awaited by many.

The revitalization of the Terry Fox Run in Port Moody is spearheaded by passionate residents Mark Pettie, Jennifer Pettie, Taylor Lepore, Rod MacBeth, and Paul Slaymaker. Their dedication to keeping Terry’s legacy alive and fostering a sense of community has been the driving force behind this event’s comeback.

Local radio host and mortgage professional Angela Calla will add a special touch to the day by performing the national anthem alongside her daughter. Angela’s participation exemplifies the spirit of unity and community that the Terry Fox Run embodies.

“We are thrilled to bring the Terry Fox Run back to Port Moody,” said Mark Pettie. “This event is not just about running or walking; it’s about coming together as a community to honor Terry’s legacy and support cancer research. We invite all residents and businesses to join us for this meaningful cause.”

Participants can choose to run or walk (or cycle, jog, scoot, skip, march) the 2, 5 or 10-kilometer route, making it accessible for all ages and fitness levels. The event will be a wonderful opportunity for the community to reconnect, support one another, and raise funds for cancer research in Terry Fox’s honor.

Event Details:

Date: September 15th, 2024
Location: Rocky Point Park, Port Moody, BC
Time: Registration starts at 8:30 AM; the run/walk/jog begins at 10:00 AM

Activities: 9:45 Community gathering for speech followed by national anthem performance by Angela Calla and her daughter,  then 2, 5 or 10-kilometer run/walk/jog/stroll/cycle/skip

For more information about the Terry Fox Run in Port Moody or to register/donate for the event, please visit the official website https://run.terryfox.ca/69707 and follow our social media accounts for more updates:

Facebook – Terry Fox Run Port Moody https://www.facebook.com/TerryFoxRunPortMoody

Instagram: @terryfoxrunpomo

 

We are also looking for a volunteer coordinator and volunteers! If you are interested in volunteering for the event please fill out our form: https://forms.office.com/Pages/ResponsePage.aspx?id=74xl2ZICUkKZJWRC3iSkS1IUsAZ95SdDn5A8ZiPHuWNUQzgzTkczTDNTQ0lGV0JKNzVCWklMV1BCMi4u

Join us in celebrating Terry Fox’s legacy and making a difference in the fight against cancer. Let’s come together as a community and make this year’s run a memorable one!

Media Contact:

Angela Calla, angela@countoncalla.ca or 604-802-3983

Mark Pettie, pettie@telus.net 604- 716-6615

About the Terry Fox Foundation
The Terry Fox Foundation is a Canadian charity dedicated to raising funds for cancer research in memory of Terry Fox, who inspired millions with his Marathon of Hope. Since its inception, the foundation has raised over $800 million for cancer research worldwide. For more information, please visit www.terryfox.org


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. 

Angela Calla on CBC National News – BOC Rate Decrease

General Angela Calla 6 Jun

Angela Calla appeared on CBC National News yesterday to discuss the Bank of Canada’s recent rate decrease and its impact for homeowners and homebuyers.

The 11 minute interview we believe is a must watch for anyone who is up for renewal, or considering a home purchase.

Topics we cover include

  1. Understanding the Rate Decrease
  2. Different Mortgage Types, how they vairy and impact your wealth
  3. Opportunities for Homebuyers
  4. Important Reminder for Renewals

Watch the full interview here by clicking the image below.

 


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. 

Bank of Canada Lowers Rates: What It Means for Your Mortgage

General Angela Calla 5 Jun

We are pleased to inform you that today, the Bank of Canada reduced its target for the overnight rate by 25 basis points, bringing it down to 4.75%. This is the first interest rate cut since the tightening cycle began in March 2022.

A Positive Step for Homeowners and Borrowers

Although there will likely be no significant changes to fixed mortgage rates in the short term, this rate reduction is seen as a positive step towards alleviating the financial pressure on mortgage holders, borrowers, and homebuyers across British Columbia. Variable Rate Mortgages and Home Equity Lines of Credit will benefit from this rate drop as the prime lending rate decreases.

“A rate cut is crucial to provide the first steps of relief to mortgage holders and borrowers across the country,” said Angela Calla, President of The Angela Calla Mortgage Team. “We are pleased that the Bank of Canada has begun to ease the financial burden on homeowners and homebuyers.”

Economic Context

The Canadian economy has shown meaningful signs of slowing, with the first-quarter growth rate of 1.7% falling short of the Bank of Canada’s forecast of 2.8% and economists’ estimates of 2.2%, according to Statistics Canada. Inflation has also seen a significant decline. The annual CPI inflation rate peaked at 8.1% in June 2022 but has since fallen to 2.7% in April, comfortably within the Bank’s target range of 1% to 3%.

Due to elevated interest rates, the cost of shelter in British Columbia was up again in April. Homeownership costs increased by 7.2%, and renting costs rose by 7.1%, putting many British Columbians at a tipping point.

Future Rate Cuts

This rate-lowering cycle by the Bank of Canada is unique as it isn’t a response to a global crisis, which has been the norm in recent history. Instead, we can expect a gradual pace of rate cuts, likely around 25 basis points per meeting, over the next 18 months. The goal is to bring the policy rate into the Bank’s estimated neutral range of 2.25-3.25%. Economic conditions will dictate the ultimate rate, with a baseline expectation of 2.75%. However, if the economy performs worse than expected, the rate might drop below 2.25%, while more persistent inflation could halt the cycle above 3.25%.

Impact on Mortgage Rates

The impact of the Bank of Canada’s rate cuts on fixed mortgage rates may not be substantial. Since late 2023, the bond market—and by extension, the mortgage market—has anticipated falling policy rates. This means that the expected rate cuts are likely already reflected in current 5-year fixed mortgage rates.

For variable rates, current market pricing is around prime minus 60 basis points. If this discount persists, it will require seven rate cuts, or 175 basis points, for the average variable rate to fall below the average 5-year fixed rate.

Savings for Homeowners

With the recent rate reduction, homeowners with Variable or Adjustable Rate Mortgages and Home Equity Lines of Credit can expect to save approximately $13 per $100,000 of their mortgage amount. The exact impact will vary depending on your lender product and terms.  You will see most Banks Prime Rate go from 7.20 to 6.95

Questions About Your Mortgage?

Understanding how these changes affect your mortgage can be complex. For a personalized review and to explore your options, reach out to us directly. We’re here to help you navigate these changes and make the best decisions for your financial future.  Reach out to us at angela@countoncalla.ca or 604-802-3983.

Additional Information to Note 

The next scheduled date for announcing the overnight rate target is July 24, 2024. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the Monetary Policy Report (MPR) at the same time. For more details, you can read the full Bank of Canada Release.

 


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. 

June 2024 Newsletter

General Angela Calla 4 Jun

This month, let’s talk about how mortgage pre-approval versus pre-qualification for those potential buyers out there, PLUS some of the best home features for pets! Scroll down for all the details and have a great month.

Mortgage Pre-Approval vs. Pre-Qualification

Looking to buy your first home?

Thinking about making a move?

Whatever your goals, when it comes to getting a mortgage, there are a few things you can do in advance to make the mortgage process easier!

Getting Pre-Qualified: The purpose of mortgage pre-qualification is to help you get a general idea of what you can afford when shopping for your new home.

Pre-qualification will take your own assessment of your financial status and allow you to come up with a budget for a home, as well as what you can afford for monthly payments.

Download my app today and get pre-qualified in under 60 seconds! Plus, this will help to provide you with an estimate of your monthly mortgage payments and compare various payment schedules.

Getting Pre-Approved: While getting pre-qualified can give you a ballpark estimate of what you can afford, pre-approval means that a lender has stated (in writing) that you do qualify for a mortgage and what amount, based on submitted documentation of your current income and credit history.

A pre-approval usually specifies a term, interest rate, and mortgage amount and is typically valid for a brief period, assuming various conditions are met.

There are a few benefits to pre-approval including:

  1. It confirms the maximum amount you can afford to spend
  2. It can secure you an interest rate for 90-120 while you shop for your new home
  3. It lets the seller know that securing financing should not be an issue. This is extremely important for competitive markets where lots of offers may be coming in.

Keep in mind that once you get your pre-approval, you will want to make sure not to jeopardize it. Until your mortgage application and sale is completed, be sure you don’t quit or change jobs, buy a new car or trade up, transfer large sums of money between bank accounts, leave your bills unpaid, or open up new credit cards. You do not want your financial or employment details to change at all until you have closed on the new mortgage.

Reach out to me to get started today!

Best Home Features for Pets

Creating a pet-friendly home involves considering the comfort, safety, and well-being of your furry friends.

 

Here are some home features to consider:

  • Durable Flooring: Choose scratch-resistant and easy-to-clean flooring like hardwood, laminate, or more durable tile options. Avoid carpets if possible, or choose pet-friendly carpeting that’s stain-resistant.
  • Pet-Friendly Fabrics: Choose furniture and upholstery made from pet-friendly fabrics like leather or microfiber that are durable and easy to clean. This helps in case of accidents or shedding.
  • Pet-Safe Plants: Select indoor plants that are non-toxic to pets, such as spider plants, Boston ferns, or palms. Keep toxic plants out of reach or opt for artificial plants.
  • Designated Pet Areas: Create designated spaces for your pets, such as a cozy corner with a bed or a built-in nook under the stairs. This gives them a sense of security and their own space.
  • Easy Access to Outdoors: Install a pet door or create a pet-friendly exit to the yard, allowing your pets to go outside and play freely.
  • Secure Fencing: Ensure your yard has a secure fence to prevent your pets from wandering off and to keep them safe from potential dangers.
  • Built-in Feeding Stations: Incorporate built-in feeding stations or cabinets to store pet food and supplies, keeping them organized and out of reach from curious pets.
  • Wash Station or Mudroom: Include a designated area near the entrance for cleaning muddy paws or bathing your pets, with easy-to-clean surfaces and storage for grooming supplies.
  • Integrated Pet Technology: Consider installing smart pet feeders, water fountains, or cameras to monitor your pets remotely and ensure they are comfortable and well-fed when you’re away.

By incorporating these features into your home design, you can create a safe, comfortable, and enjoyable environment for both you and your pets.

Economic Insights from Dr. Sherry Cooper

Canadian inflation has fallen considerably for the past four months. Excluding shelter, inflation is a mere 1.6%.

While the job market was relatively strong in April, the unemployment rate continues to rise.

Job growth, though strong, is not keeping up with the surge in working-age immigrants. GDP growth was likely about 2.3% in the first quarter, but per capita GDP is falling. Moreover, economic activity will likely slow to about 1.0% in the current quarter, posting only 1.2% for the year, well below the neutral rate.

 

Monetary policy remains quite restrictive. Homeowners facing more renewals see their monthly payments rise sharply. The housing market has slowed, with new listings surging and buyers waiting for the central bank to cut interest rates. The odds are about even that the Bank of Canada will begin cutting the overnight policy rate in June versus July. It can’t be soon enough for the housing industry.

 

GDP growth is tracking below the Bank of Canada’s most recent forecast. And on a per capita basis, it looks even worse. The weakness in economic activity should persist in the coming months as household and business owners increasingly feel the pinch of earlier rate hikes. Moreover, the federal government’s plan to reduce the temporary resident population over the next two-plus years should hold back the expansion.

 

The Bank of Canada should begin to cut the overnight policy rate in June. If it is delayed, there is a risk of a much steeper slowdown than forecasted.

 


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. 

May 2024 Newsletter

General Angela Calla 4 Jun

What to Know at Renewal

Is your mortgage coming up for renewal this year or in 2025?

Do you know about all the incredible options renewing your mortgage can afford you?

If not, I have all the details here on how to make the most of your renewal!

Get a Better Rate: Did you know that when you receive notice that your mortgage is coming up for renewal, it’s the best time to shop around for a more favorable interest rate? At renewal time, it’s easy to explore other lenders for a preferable interest rate without breaking your mortgage. With interest rates expected to start coming down next month, reaching out and exploring the market could potentially save you a significant amount of money!

Consolidate Debt: Renewal time is also an excellent opportunity to assess your existing debt and decide whether consolidating it into your mortgage is beneficial. Whether it’s holiday credit card debt, car loans, education loans, or other debts, consolidating your mortgage streamlines your payments into one, potentially at a lower interest rate compared to other sources.

Invest in Renovations: Do you have home improvement projects waiting to be tackled? Renewal time provides a great opportunity to tap into your home equity for renovations, whether it’s your dream kitchen, bathroom upgrades, or even investing in a vacation property. Utilizing your equity can bring your renovation dreams to life.

Adjust Your Mortgage Product: Not satisfied with your current mortgage product? Whether it’s fluctuations in variable rates or seeking a different payment or amortization schedule, renewal time allows you to switch things up. You can lock in a fixed rate for stability or opt for a variable rate if you anticipate changes in interest rates. Adjusting your mortgage product can align it better with your financial goals.

Summer is coming up and you don’t want to miss your chance to make the most of your yard! To help you enjoy your space this year, I have broken down some of the top yard appeal ideas with the biggest ROI giving you the most bang for your buck and can increase your home’s equity and curb appeal at the same time!

 

Yard Appeal Ideas for The Biggest ROI

Summer is coming up and you don’t want to miss your chance to make the most of your yard! To help you enjoy your space this year, I have broken down some of the top yard appeal ideas with the biggest ROI giving you the most bang for your buck and can increase your home’s equity and curb appeal at the same time!

  • Embrace Sustainable Landscaping: Incorporating native plants, drought-resistant foliage, and xeriscaping techniques not only reduces water consumption but also creates an eco-friendly landscape. Consider installing a rain garden or a drip irrigation system to conserve water and enhance the natural beauty of your yard.
  • Install Outdoor Structures: Adding functional outdoor structures like pergolas, arbors, or gazebos can provide shade, define spaces, and add architectural interest to your yard. These structures can serve as focal points and create inviting outdoor living areas for entertaining or relaxation.
  • Upgrade Your Lawn: A lush, well-maintained lawn instantly elevates the appearance of your yard. Invest in professional lawn care services, aerate and overseed to fill in bare patches, and regularly fertilize and water your lawn to keep it healthy and green. Consider alternatives like artificial turf for low-maintenance options.
  • Incorporate Water Features: Incorporating a water feature such as a fountain, pond, or waterfall adds visual interest, tranquility, and a sense of luxury to your yard. The soothing sound of running water can create a serene ambiance and attract wildlife, enhancing the overall appeal of your outdoor space.
  • Enhance Privacy: Increase the comfort and enjoyment of your yard by enhancing privacy with strategic landscaping, fencing, or screening options. Planting tall hedges, installing lattice panels, or adding trellises with climbing plants can create secluded areas and block unsightly views while adding beauty and greenery to your yard.

By implementing these additional ideas alongside the ones you’ve already outlined, you can transform your yard into a welcoming oasis that not only enhances your enjoyment but also offers a significant return on investment.

 


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. 

Property Taxes 2024

General Angela Calla 31 May

As we approach the property tax deadline, we want to remind you of the important dates and steps you need to take to ensure your property taxes are paid on time. This is particularly important for those of you who purchased a property earlier this year.

Key Dates to Remember:
Property Tax Due Date: July 2, 2024 (some municipalities – July 3rd) check directly with your lender if you are unsure if they are included in your mortgage payment.
Home Owner Grant Application Deadline: December 31, 2024

Your Responsibility as a Homeowner
If you purchased a property at the beginning of the year, it’s crucial to remember that paying outstanding property taxes is your responsibility. Failure to pay your property taxes by the due date will result in penalties and interest charges. Ensure you deduct any eligible Home Owner Grant (HOG) from your total tax amount before making your payment.

Claiming the Home Owner Grant (HOG) in British Columbia
The Home Owner Grant is a program designed to help reduce the amount of property taxes paid by eligible homeowners. Here’s a step-by-step guide on how to claim your Home Owner Grant:

1. Determine Your Eligibility: You must be a permanent resident of British Columbia.
•You must be a permanent resident of British Columbia.
•The property must be your principal residence.
•You must be the registered owner of the property.
2 .Understand the Grant Amount:
•Basic Grant: Up to $570
•Additional Grant: Up to $845 (for seniors aged 65 or older, people with disabilities, or surviving spouses of veterans)
3. Apply for the Grant:
•Visit the BC Government’s Home Owner Grant Application website. https://www2.gov.bc.ca/gov/content/taxes/property-taxes/annual-property-tax/home-owner-grant/apply
•Ensure you have your property tax notice on hand, as you will need the jurisdiction number and the roll number.
4. Submit Your Application:
•Fill out the application form online or submit a paper form if applicable.
•Submit the application before the property tax due date to avoid penalties on the total tax amount.
5. Receive Confirmation:
•After submitting your application, you will receive a confirmation. Ensure you keep this for your records.

Important Notes:
•Late Payments: If you do not pay your property taxes by the due date, you will incur penalties. Ensure you subtract any Home Owner Grant from your total property tax amount before paying.
•Penalties: The penalty for late payments is a significant percentage of the outstanding amount, so it is vital to pay on time.

If you have any questions or need assistance with your Home Owner Grant application, please contact the property tax office or visit the BC Government Home Owner Grant page directly.
If you have any mortgage related questions on mortgage options, renewals or a home purchase or review of finance outside your mortgage with a financial planning partner, please reply to this email and we are happy to assist.


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. 

How to Close on a Presale to Preserve Wealth with Reverse Mortgage

General Angela Calla 24 May

As presale closing dates approach, many clients are trying to figure out how to close on the presale they wrote on 2 years ago. If you are 55 years or older, we may be able to help.

For a client purchasing a presale who no longer qualifies for enough of a mortgage on the new purchase, their parents or grandparents can use CHIP to gift the necessary funds. The parents or grandparents can gift the money with no impact on their monthly cashflow (no payments required) and no tax or investment growth impact from taking the money from savings.

Clients 55 years of age or older purchasing the condo for themselves, either as a rental or a home they will eventually move into, have a few options. If they have good equity in their existing home, we can do an interalia over both properties to finance the full purchase price. We will need to payout the mortgage on their existing (if there is one).

Should the interalia not give them enough funds to close, you can also look at doing a reverse mortgage on whichever property will be their primary residence and fund the remaining amount owing through a traditional mortgage on the other property. We do not consider non-subject properties when qualifying.

And, of course, if your clients have enough equity in their primary residence to fund the purchase of the presale, no interalia is required.

If your clients intend on selling one of the properties within the first year, Reverse Open is a good option. If they plan on keeping it for longer they are likely better off to do a traditional reverse and pay the penalty when they sell. I’m happy to run the numbers for both scenario.

 

Recent Client Story – Presale Condo Purchase

Larry (78) and Brenda (74) have a clear title home in Burnaby valued at $3.2M. Their grandson purchased a presale in 2021, closing at the end of May. Not only does he no longer qualify for the mortgage but the appraisal came back lower than the purchase price so he also needs to make up the $80,000 shortfall.

Reverse approved loan amount: $1,242,500

They gifted their grandson $400,000 to close on his presale. The grandson didn’t need that much but Larry and Brenda decided that, rather than gift him just enough to cover the shortfall and qualify, they would gift him enough to help him live more comfortably.

 


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. 

Updates – May 2024

General Angela Calla 23 May

We wanted to share some key points to consider with the expected changes ahead, particularly as we look forward to the Bank of Canada press release on June 6th. While data suggests a rate cut, it wouldn’t be a total surprise if they waited until July. When the anticipated cut occurs in the upcoming months, it is expected to be 25 basis points, which translates to a $13 reduction per $100,000 in mortgage amount for those with adjustable-rate mortgages or line of credit products.

If You Are Looking to Buy a Home
In some areas, with an increase in listings, it is currently a buyer’s market. Waiting for rates to go down may bring more buyers into the market, driving prices up and offsetting the reduced mortgage rates. This is why the Bank of Canada is cautious and slow with rate decreases. If you qualify now, you can benefit from these market conditions. You may enjoy our FREE mortgage toolbox app.

If You Can’t Qualify Now
Now is a great time to set up a plan! The RRSP limit has been increased, and the new FHSA is a great option. These, combined with other planning methods, will help you reach your goal efficiently. Simply reply to this email with your phone number, and we will have a financial planner get in touch with you.

If Your Mortgage Renewal Is Coming Up in the Next 6 Months
Reach out to us today. We conduct full rate checks before completion to ensure the lowest borrowing costs, so you won’t miss an opportunity. Working without bias is to your best advantage, allowing us to clear the clutter, simplify your life, and ensure you get the best options. We help families by conducting a comprehensive review of their finances, which can free up hundreds or even thousands of dollars monthly, setting you on a path to financial security.

Fun Stuff
-If you haven’t entered our contest to Win a Free Mortgage Payment, do so HERE.
-If you want to catch our next Mortgage Renewal Webinar, register HERE.
We look forward to connecting with you after the Bank of Canada Press Release on June 6th.
Please reach out to us directly with any mortgage questions or for an introduction to a financial planner or real estate partner.


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.