Low Rates Helping Borrowers Pay Off Mortgages at Record Pace

General Angela Calla 29 Jun

Home prices may be astronomical in certain parts of the country, but historically low mortgage rates are allowing borrowers to pay off their mortgages faster than ever.

At today’s average rates, 61% of a new homebuyer’s very first mortgage payment is going towards principal repayment, according to data from Edge Realty Analytics.

In the early 2000s, that percentage was 26.5%. The change is even more drastic when looking back at the 1990s, where just 11.9% of a homebuyer’s first payment went towards paying down the principal, or the 1980s, when that percentage was a minuscule 4.6%.

The result is a much faster build-up of equity over a short period of time, so long as interest rates remain low.

After the first five years of mortgage payments, today’s homebuyers borrowing at today’s prevailing rates will have paid back more than a fifth of their mortgage (16.5%). Here’s a look at how that compares to past decades:

Mortgage payments

(Courtesy: Edge Realty Analytics)

 

“Homeownership represents a very aggressive forced saving program,” Mortgage Professionals Canada noted in its annual consumer report.

“As a result (and even before we consider the impact of price growth) housing equity is built very rapidly,” the report noted. “This excellent ‘net affordability’ goes a long way to explaining why homebuying activity has remained strong in Canada and why a large majority of Canadians see homeownership as financially better than renting, despite the rapid run–up in house prices and the higher burden of mortgage (principal plus interest) payments.”

(Source: Mortgage Professionals Canada)

 

Not only have low interest rates allowed borrowers to repay their mortgages more quickly, but it’s also kept housing moderately “affordable” despite the 38.4% run-up in average home price in the past 12 months.

“If it were not for the extremely low interest rate, most cities in Canada, especially Toronto, Ottawa, Vancouver and Montreal, would be in overvalued territory,” Alberta Central chief economist Charles St-Arnaud wrote in a recent analysis. “It means that the main driver for affordability is the record low level of interest rates.”

But Rates Won’t Stay Low Forever

All good things must come to an end, and that goes for ultra-low mortgage rates.

The Bank of Canada has made it abundantly clear that it expects to start raising interest rates by late next year.

How much rates will increase in the Bank’s next rate-hike cycle is anyone’s guess. But for what it’s worth, markets are pricing in at least eight 25-bps hikes over the next five years, which would bring Canada’s overnight rate to 2.25%, up two percentage points from its current record-low of 0.25%.

But even a more modest rise in rates of as little as 100-150 basis points could “push the valuation metrics into overvalued territory,” St-Arnaud noted, making today’s still somewhat “affordable” housing market patently unaffordable for most.

“Our simulations show that many cities in Canada will struggle with housing affordability as interest rates increase,” he added. “A 150-bps increase in mortgage rates could be enough to generate significant headwinds on some housing markets and house prices.”

 

 This article was published by the Canadian Mortgage Trends, to view the article on their website click here.

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. 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. 

Team Banner housing market

 

Home buyers should think twice before sending a ‘pick me’ letter to the seller

General Angela Calla 17 Jun

The housing market is so competitive buyers are doing anything they can to get a home.

A common way to try to stand out is to write a heartfelt “love letter” to a seller — a seemingly harmless note to express appreciation of the home and make a personal connection.

But in this overheated real estate market, what were once simple handwritten or typed letters have lately given way to more polished packages, with photographs of the buyers and even videos, agents say. Some prospective homebuyers even purchase letter templates on sites like Etsy.

But these letters can present problems, according to the National Association of Realtors, raising fair housing concerns. While some agents say the tactic is a tried and true way to win a bidding war, other agents, following recent guidance from NAR, won’t deliver or accept love letters anymore.

According to the federal Fair Housing Act, it is illegal to discriminate in the sale of housing because of race, color, national origin, religion, sex, familial status, and disability. And these letters can be full of those kinds of details.

When I started to collect the letters and the pictures, it became clear they all came from a place of privilege. It was almost always white, heterosexual couples. Sometimes on their wedding day, or with one or two kids and their dog.”

LIZ BRENT, THE BROKER AND OWNER OF GO BRENT

“Typically, a letter like this is telling the seller who is going to live in the home and how they are going to live in it,” said Francine Viola, a broker with Coldwell Banker Evergreen Olympic Realty in Olympia, Washington. “But writing a love letter is not going to get you the house and you’re putting that seller in a position that they could be violating Fair Housing laws.”

A buyer may write a letter to the seller that says: “This is my dream home and I’m excited to live there with my husband and our two young children. We love that the home has a first floor bedroom for my mother, who lives with us. I can imagine the kids running down the stairs on Christmas morning.”

“Right there you have information about family status, religion and a possible disability,” Viola said. “These are protected classes in the Fair Housing Act. You can talk about that kind of personal information, but you can’t do it in a real estate contract.”

Viola said she feels for the buyers who want to snag a seller’s attention. “It’s a boilerplate offer and they don’t feel like they have a lot of control in the process, I get why they want to write a letter to find common ground,” she said.

But she tells her buyers to spend more time writing an offer, not a letter.

Coming from a place of privilege

 When Liz Brent, the broker and owner of Go Brent, who works in Maryland and Washington DC, first began seeing buyers writing letters in the early 2000’s, it didn’t faze her.

But over the past five years, as the market grew more competitive and she saw many more letters with photographs of the potential buyers, she began to see them as a way for buyers to signal personal attributes.”I call them ‘pick me’ letters,” said Brent. “It is “pick me because of who I am.’ ”

The soft discriminatory issues at play, she said, are harder to pin down than clearer forms of bias in real estate and rely more on unconscious than explicit bias. Still, Brent said she began to see a pattern in the letters.

“When I started to collect the letters and the pictures, it became clear they all came from a place of privilege,” she said. “It was almost always white, heterosexual couples. Sometimes on their wedding day, or with one or two kids and their dog.”

She said she’s never seen a letter with a photo of a single person, or a person with a visible disability, or of an older couple.

Her firm recently began stating in their listing information that no buyer letters will be accepted.

“Sellers should be making a decision only on the best combination of the highest amount of money and least amount of risk from a buyer,” she said. It’s not always the highest offer that is the winning offer, she said, but a mix of factors. A letter could help sway a homeowner, but likely for the wrong reasons.

Letters of love or liability?

Last fall, the National Association of Realtors released guidance on love letters for its 1.4 million members, advising agents they can be a liability. Other real estate associations, including the California Association of Realtors, have also flagged letters as a practice that may not be motivated by discrimination, but may still have a discriminatory effect.

It isn’t a rule and there are no consequences for agents who do otherwise, but NAR recommends that its member agents should not draft, read, deliver or accept love letters.

Both sellers and agents could be sued under the Fair Housing laws, and agents have additional professional liabilities because they are licensed by the state, said Bryan Greene, NAR’s vice president of policy advocacy.

“Buyers can say whatever they want and can send letters,” said Greene, “But NAR is saying to its agents that it is a best practice to avoid letters in a recognition that things could go awry, even if there is no legal consequence.”

Greene is quick to point out that the liability is mostly theoretical. He is not aware of any actual case that has been brought as a result of a love letter.

And, he added, it would be hard to bring a Fair Housing complaint unless you had direct knowledge that a seller made a decision based on a detail about one of the protected classes revealed in one of these letters.

“A buyer may suspect that someone took the love letter over other offers,” he said. “Then you’d have to prove that the seller relied on a specific discriminatory aspect of the letter.”

Still, the NAR guidance is a warning for agents and their clients to be conscientious. “If you do rely on a letter, agents and sellers need to document that the decision to accept an offer had nothing to do with race, national origin, religion or other protected classes.”

Best for buyers to focus on price and terms

In such a competitive real estate market, many buyer’s agents may be reluctant to turn off a buyer by telling them not to write a letter.

Technically, agents say, letters that don’t include any kind of information about protected classes are fine. Just saying you like the deck and fireplace is okay, Brent says, but that ultimately shouldn’t matter to the seller.

Similarly, a buyer could write a letter that highlights their intentions with the property — to live in it rather than to flip it, say — Greene said, that doesn’t include any personal descriptions.

Corey Burr, a senior vice president at TTR Sotheby’s International Realty in Washington, DC, recently sold a home listed for over a million dollars that had six offers. A potential buyer took notice of some of the New England and maritime photographs and decor in the house because they were from that part of the country, too. They felt compelled to tell the seller.

“The letter struck a chord with my seller,” Burr said, and they went with that buyer. “But their offer was also the best one.”

It is imperative that sellers don’t choose someone because of a connection that is made through a letter, but on the criteria in the offer, Burr said.

“I’ve never seen a property sell on the letter on its own — only when a letter is also with an offer that is better than someone else’s,” he said.

But he doesn’t tell his buyers they can’t write them. “I don’t encourage it,” he said. “Sometimes they can come off stale and cliche, but buyers are hearing from family and friends that these letters can make a difference.”

It may be small comfort to buyers frantically trying to appeal to a seller, but he says that sellers are less precious about what may happen to their home after it sells or feeling a “connection” with the buyer than buyers may think.

“Letters are not a major part of the transaction,” said Burr. “The meat of the transaction is the price and the terms. That’s where buyers should focus.”

This article was published by CNN, to view the article on the CNN website, please click here.

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. 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. 

Team Banner housing market

Bank of Canada Holds Rates and QE Steady–Asserting That Both the Upside in Inflation and the Downside in GDP is Temporary

General Angela Calla 9 Jun

The Bank of Canada left the benchmark overnight policy rate unchanged at 0.25% and maintained its current pace of GoC bond purchases at its current pace. The Governing Council renewed its pledge to refrain from raising rates until the damage from the pandemic is fully repaired. The $3 billion weekly pace of bond-buying–known as quantitative easing–will decline as the recovery proceeds. In April, at their last meeting, the Bank reduced the pace of GoC bond buying from $4 billion to $3 billion per week. The central bank was among the first from advanced economies to shift to a less expansionary policy in April when it accelerated the timetable for a possible interest-rate increase and pared back its bond purchases.

The Bank’s view regarding the domestic economy appears to be little changed despite the April Monetary Policy Report (MPR) overestimating Q1 GDP growth by 1.4 percentage points. Indeed, today’s Policy Statement notes that Q1 GDP growth was “a robust 5.6 percent” and that the details of the report point to “rising confidence and resilient demand.” Concerning Q2, the third wave lockdowns are “dampening economic activity…largely as anticipated.” Note that the April MPR projected 3.5% growth in Q2 GDP, while the consensus forecast currently sits at 0% for Q2, with downside risk.

The Bank also noted that “Recent jobs data show that workers in contact-sensitive sectors have once again been most affected. The employment rate remains well below its pre-pandemic level, with low-wage workers, youth and women continuing to bear the brunt of job losses.” The chart below shows that the labour market is still below the Bank’s target for a full recovery.

Bank of Canada Upbeat Over the Medium Term

“With vaccinations proceeding at a faster pace, and provincial containment restrictions on an easing path over the summer, the Canadian economy is expected to rebound strongly, led by consumer spending. Housing market activity is expected to moderate but remain elevated.”

On the inflation front, there were no surprises. The Statement says that inflation has risen to the top of the 1-3% control range due to base effects and gasoline prices. The rise in the core measures is blamed on temporary factors as well. The Bank anticipates headline inflation will stay around 3% through the summer before pulling back later in the year. On the cautious side, the BoC highlights that the labour market still has a way to go before healing. There’s also uncertainty surrounding COVID variants.

The concluding paragraph didn’t change much. It reiterates that there “remains considerable excess capacity” and that policy rates will stay at the lower bound until “economic slack is absorbed,” which the April MPR said was in 2022H2. Concerning further tapering, the “assessment of the strength and durability of the recovery” will guide that decision.

The C$ barely garnered a mention yet again, with the Statement noting the recent gains and accompanying rise in commodity prices. The market might view the lack of concern here as a green light for further strength.

Bottom Line

The Bank of Canada is looking through “transitory” ups in inflation and downs in GDP. With vaccination rates continuing to ramp up significantly, and provinces beginning a gradual reopening process, the economy will rebound substantially beginning in June.

Indeed, with the near-term growth outlook increasingly bright, concerns have shifted to rising production input prices and the prospect for a sharp recovery in consumer demand to stoke inflation pressures. For now, the BoC is positing that near-term increases in consumer price growth rates will prove ‘transitory.’ But there have also been signs of harder-to-dismiss firming in most measures of underlying price growth gauges, including the BoC’s own preferred core measures edging up towards or above the 2% inflation target.

July’s meeting will likely be a bit more interesting with the Bank issuing more details in another Monetary Policy Report. We don’t see any need for dramatic forecast revisions at this stage, and the BoC’s guidance that rates might have to start increasing in the second half of next year remains appropriate. It looks like the main question will be around further tapering of the BoC’s asset purchases. The BoC didn’t signal an imminent taper (we didn’t think it would) but said decisions regarding the pace of purchases would be guided by its assessment of the strength and durability of the recovery. If incoming data aligns with the BoC’s forecasts, we could see it reduce weekly bond-buying again in July to $2 billion per week from $3 billion. If not, September might serve as a backup as the bank seeks to prevent its footprint in the bond market (nearly 44% at the end of May) from becoming too large while at the same time setting itself up to shift QE to reinvestment only well in advance of the first interest rate hike.

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. 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. 

Team Banner housing market

Housing Drove the Economic Expansion in Q1

General Angela Calla 7 Jun

This morning’s Stats Canada release showed that the economy grew at a 5.6% annualized rate in the first quarter, after a revised 9.3% pace in the final quarter of last year. That was somewhat below economists’ expectations. Housing investment grew at an annualized 43% pace, by far the biggest impetus of the expansion. Residential investment now makes up a record proportion of GDP (see chart below). Compared with the first quarter of 2020, housing investment was up 26.5% and led the recovery. Growth in housing was attributable to an improved job market, higher compensation of employees, and low mortgage rates. After adding $63.6 billion of residential mortgage debt in the last half of 2020, households added $29.6 billion more in the first quarter of 2021.

Residential investment is a component of the Gross Domestic Product accounts and is technically called ‘gross fixed capital formation in residential structures’ by Statistics Canada. Investment in residential structures is comprised of three components: 1) new construction, 2) renovations and 3) ownership transfer costs. The first two components are obvious.

The home-resale market’s contribution to economic activity is reflected in ‘ownership transfer costs.’ These costs are as follows:

  • real estate commissions–including realtors and mortgage brokerage fees;
  • land transfer taxes;
  • legal costs (fees paid to notaries, surveyors, experts etc.); and
  • file review costs (inspection and surveying).

The second chart below shows the quarterly percent change in the components of housing investment in inflation-adjusted terms. This chart illustrates the surge in existing home sales since the second quarter of last year (reflected in the red bar). Although the resale market has slowed since the third quarter of last year, it remains a driving force of economic expansion.

Growth in housing investment was broad-based. New construction rose 8.7% (quarter-over-quarter), largely driven by detached units in Ontario and Quebec. Ownership transfer costs increased 13.1%, with the rise in resale activities. Working from home and extra savings from reduced travel heightened the demand for, and scope of, home renovations, which grew 7.0% in the first quarter.

 

 

The increase in GDP in the first quarter of 2021 reflected the continued strength of the economy, influenced by favourable mortgage rates, continued government transfers to households and businesses, and an improved labour market. These factors boosted the demand for housing investment while rising input costs heightened construction costs.

The GDP implicit price index, which reflects the overall price of domestically produced goods and services, rose 2.9% in the first quarter, driven by higher prices for construction materials and energy used in Canada and exported. The sharp increase in prices boosted nominal GDP (+4.3%). Compensation of employees rose 2.1%, led by construction and information and cultural industries, and surpassed the pre-pandemic level recorded at the end of 2019.

Strength in oil and gas extraction, manufacturing of petroleum products, and construction industries led to a higher gross operating surplus for non-financial corporations (+11.5%). Higher earnings from commissions and fees bolstered the operating surplus of financial corporations (+3.9%), coinciding with the sizeable increases in the value and volume of stocks traded on the Toronto Stock Exchange (TSX).

Most aspects of final sales were solid in Q1, with consumers a bit stronger than expected (2.8% a.r.), government adding (5.8%), and net exports also contributing. In contrast, business investment was one real source of disappointment, with equipment spending surprisingly falling. But the biggest drag came from a drop in inventories, with this factor alone cutting growth 1.4 ppts in Q1, and versus expectations, it could add a touch. The good news is that this should reverse in Q2, supporting activity in the current quarter.

On the monthly figures, there were few big surprises. March’s initial flash estimate of +0.9% was nudged up in the official estimate to +1.1% as the economy began to re-open from the second wave. Tougher COVID public health rules slammed the brakes on Canada’s economy in April. Statistics Canada estimates gross domestic product shrank 0.8% in the month, representing the first contraction in a year and a weak handoff heading into the second quarter. April may well be followed by a soft May. Even so, we still expect a strong June will keep Q2 roughly flat overall and look for robust Q3 growth.

Bottom Line

In many respects, Q1 data is ancient history. We know with the resurgence in lockdowns, growth in Q3 will at best be flat. In the hopes that vaccinations will accelerate and COVID case numbers will continue to fall across the country, Q4 will likely see a strong resurgence in growth.

Click here to read this article on Dr. Sherry Cooper’s website. 

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. 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. 

Team Banner housing market

 

 

Introducing the First Responder Mortgage Program™

General Angela Calla 4 Jun

To gesture our appreciation to our First Responders across the country we created a program specifically for them! The First Responder Mortgage Program™ is our way of saying THANK YOU.

Who is Eligible: The First Responder Mortgage Program™ is open to the following individuals:

  • Police Officers
  • Paramedics
  • Firefighters (employed and volunteering)
  • Correctional Services
  • Border Services
  • Search & Rescue (employed and volunteers)
  • Registered Physicians
  • Registered Nurses

What You Can Expect: From purchasing a home or switching from a current mortgage provider, the Dominion Lending centers ® First Responder Mortgage Program™ is focused on providing you with the best available mortgage options, including:

  • Competitive rates1
  • Up to $1,600 cashback on all eligible new purchase transactions – or up to $1,200 when you switch2 your existing mortgage to a new qualified Fixed or Variable rate mortgage 3
  • Up to $400 for discharge and switch fees4
  • Additional cash offers available with eligible banking packages4
1 Rates are subject to change and are dependent on qualification and credit rating, speak with your mortgage expert to learn more
2 Switch Promotional Cashback offer cannot be combined with the cashback for purchase transactions or IFP cashback deal.
3 Customers must attend in branch meeting in order to qualify for the cashback promotion
4 Some conditions apply

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. 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. 

Team Banner housing market

NEW Mortgage Stress Test | How it will affect YOU

General Angela Calla 1 Jun

Further to the original announcement in early April, the new mortgage stress test released on June 1st has officially increased for home purchases and those looking to refinance. This has caused a decrease in their borrowing power by about 5%.

To put this in perspective, if they were approved for 1 million dollars, that is reduced to approx. 950k. You can download our app to see how this will impact you.

Some points to keep in mind about the new mortgage stress test:

  • Rates are still near record lows, and these new changes do not increase your borrowing cost.
  • All lenders have different sources of income they will utilize to help you qualify for the mortgage that is right for you. We have seen lenders step up in many different ways, and most recently with a special first responders program.
  • As an unbiased mortgage broker, we protect your credit by reviewing all the options by all the lenders in the country to find a mortgage to suit your needs with the best value for you, that are only available to us as licensed professionals

If you or someone you care about with like a mortgage review to ensure you have the best option for you, we are here to help and just an email away callateam@countoncalla.ca.

Watch my segment on the new mortgage stress test with Global News here:

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. 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. 

new mortgage stress test

Variable Rate Mortgage? The Time to Act is Now

General Angela Calla 20 May

The Time to act is now!

If you or someone you care about has a mortgage with a discount below .50%, it might be worth it to redo your mortgage. Why? The lower variable rate discounts have reached an all time low.

This opportunity may potentially save you money! Please note, it will be subject to approval which will depend on how much time is left.

Case Example 

Jason, a client that was given an annual review for his $350,000 mortgage was able to save $10,000 over 4 years thanks to a new mortgage discount difference of .90%.

It could happen to you too!

If you have any further questions on reviewing to redo your mortgage, reach out to us at angela@countoncalla.ca

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. 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. 

Team Banner housing market

 

Unique Mortgage Program Launching for First Responders

General Angela Calla 17 May

We are so proud to announce we have teamed up with our banks to develop a special mortgage program to financially support our First Responders.

On June 1st, there will be special discounted and cashback offers available for:

  • Police Officers
  • Paramedics
  • Firefighters (Volunteer & Employed )
  • Correctional Services
  • Border Services
  • Search & Rescue (Volunteer & Employed)
  • Registered Physicians
  • Registered Nurses

Please note: there are NO pre-approvals for this product, and there are special terms and conditions.

Furthermore, we will review all the options available to ensure you ALWAYS have the best mortgage product. By doing so, we will ensure that you save the most amount of money from any borrower you may encounter. 

Please share this exciting news with your loved ones that fit the criteria so we can see how much money can be saved by the mortgage program to financially support our First Responders.

Keep updated with our content! Watch our video on this topic on LinkedIn or on Facebook!

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. 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. 

Team Banner housing market

 

The New Normal: Expert Insights As Canada Emerges From The Pandemic

General Angela Calla 13 May

As Canada emerges from the pandemic, its various industries are spinning back up, hoping beyond hope that their businesses not only recover, but come back stronger than ever. Without our small businesses, we don’t have anything.

To that end, we’ve spoken to eight businesspeople across a cross-section of Canadian financial-based businesses, from trustees to loan providers to mortgage brokers, and asked them one question: What does the New Normal look like for them?

For us here at The Angela Calla Mortgage Team, 

Canadians, more than ever, are understanding the benefit of using a mortgage broker. While we have all gone through unprecedented times, we, as brokers, have had the ability to review how all lenders are handling system changes, regulation changes, and government incentives all together. Borrowers are more at ease working digitally, and in a large organized manner, to communicate changes and impacts of the market in a quick and efficient way. At a time when it’s needed most, our methods have been reassuring borrowers with the value a broker provides.

Canadians have a deep desire for financial literacy and empowerment. It’s been surveyed that 7 out of 10 Canadians live paycheck to paycheck. The pandemic has raised a lot of talk around financial health and stability, causing them to engage and learning more about the system, how brokers work for their client’s best interests, and how we can help them with other financial planning alignments to encompass overall financial health.

Moving forward into the new normal, consumers who value improving their overall wealth and financial health with every aspect available to them through the empowerment of knowledge, know that working with an unbiased party will be most important to them. For example, a mortgage professional will help guide Canadians to consider if they have six months of living expenses aside, or ensure that is addressed when their mortgage is due. Missing that aspect upon renewal is a common mistake when borrowers are fixated on the interest rate for renewal and not a holistic wealth-building/protecting approach.

Adapting to change is constant, and those who are most comfortable with that are leaders in helping others navigate it. When selecting a professional to partner with, asking them how they assist borrowers in navigating change with a proactive plan in place will help ensure you make the right decisions to be set up for financial success.

Click here to view the full article on Debt.ca where you can read about the experiences of some other notable business leaders.

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. 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. 

Team Banner housing market

First-Time Home Buyer Incentive 2.0 Now Available

General Angela Calla 4 May

Long-awaited tweaks to the government’s First-Time Home Buyer Incentive came into effect on Monday.

Nearly five months after the changes were first proposed, the Department of Finance and Canada Mortgage and Housing Corporation (CMHC) have enhanced the eligibility criteria for buyers in Toronto, Vancouver and Victoria.

As a recap, the FTHBI is a shared-equity program whereby the government contributes between 5% and 10% of a first-time buyer’s down payment, and shares in any increase or decrease in the home value until the loan is repaid. The buyer doesn’t need to make any monthly payments, though the loan must be repaid after 25 years or when the home is sold.

The new eligibility requirements include:

the maximum eligible household income has been raised to $150,000 (an increase from $120,000)
participants can borrow up to 4.5 times their household income, up from the current four times.
The changes are limited to those living in the three cities noted above, while the original criteria continue to apply to those living in the rest of the country.

“Our government recognizes that making the choice to own for the first time is a challenge, especially in major markets where housing costs are rising fastest,” said Adam Vaughan, Parliamentary Secretary to the Minister of Families, Children and Social Development and the Minister responsible for the CMHC. “To that end, the new enhancements under the Incentive increases the eligibility of the program in Toronto, Vancouver and Victoria.”

What do the FTHBI changes mean?

The increase in the maximum household income and borrowing limit means first-time buyers wanting to participate in the program can now theoretically qualify for a purchase price up to $722,000, up from roughly $505,000 for those under the original requirements.

This comes at a time when the average house price has soared to $716,000, according to March data from the Canadian Real Estate Association. Even without the high-priced markets of the Greater Toronto and Vancouver areas, the national average price still stands at $556,828.

The question, of course, is whether the changes will actually assist first-time buyers struggling with affordability as prices continue to rise nationwide.

“No. The program isn’t really assistive to first-time buyers,” says Paul Taylor, President and CEO of Mortgage Professionals Canada. “Even with the increased 4.5 times income, all eligible participants would actually be able to borrow more using a traditional 5% down insured mortgage. As such, it won’t really create any new market entrants. It will provide an option for those who already qualify, in very specific parameters, to reduce their monthly payments at the tradeoff of home equity.”

Taylor told CMT that the program is true to its name, being an “incentive” program as opposed to being “assistive.”

“The government is incentivizing first-time buyers to take on less debt and to reduce their monthly payments, but the tradeoff is reduced purchasing capacity and government co-ownership,” he added, saying the number of borrowers eligible to actually qualify for the new maximum purchase price of $722,000 “will be very small.”

This article was written and published by, Canadian Mortgage Trends. To visit the article on their webpage, click here.

Angela Calla is a 17-year award-winning woman of influence which sets her apart from the rest. She is without a doubt, a true expert in her field. 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. 

Team Banner housing market

 

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