A new study from Royal LePage has found that homeowners who can afford 20% down payments are much better off in the long run than renters.

In fact, buying a home in Canada with an uninsured mortgage puts homeowners ahead of renters in 91% of cases analyzed.

“Canadians strongly value homeownership for many reasons. Not only is it a great source of pride, it is likely the largest and most significant financial investment most people will ever make,” Karen Yolevski, chief operating officer of Royal LePage Real Estate Services Ltd., said. “Historically, homeownership has been very profitable for Canadians, many of whom have factored their real estate investments into their retirement planning. Owning a home is widely viewed as a means to save money and build equity.”

The Royal LePage-sponsored study was conducted by Will Dunning, an economist and housing market analyst who analyzed 278 scenarios based on city and housing type and took into consideration historical data and future projections. Dunning ultimately determined that owning is a better future prospect than renting.

Despite monthly ownership costs being greater than rental expenses, a mortgage’s principal payment component is a form of saving because it is not a true cost. Moreover, interest payments on the mortgage are greatest in the first month but gradually decrease over the life of the mortgage.

In 253 out of the study’s 278 cases analyzed, the net cost of owning a home, which was calculated by taking the total cost of ownership and subtracting the savings through principal repayment, was lower than rent—the report referred to it as the “ownership advantage,” which was $769 less a month in Q2-2021 than renting. In the 9% of cases in which renting came out on top, albeit only by $245, the ownership homes were in the luxury segment.

“For many people, buying a home—especially the first—is a landmark event and one of the most challenging decisions we’ll make in our lives,” Dunning, president of Will Dunning Inc., said. “It is a decision that is usually based on a lot of hard work. This research tests a belief that is held by a lot of Canadians, that owning is better financially than renting. And, it finds that this belief is very often correct.”

This article was written by Neil Sharma and published on Canadian Real Estate Magazine.

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. 

BC experienced the largest net gain in interprovincial migration in the 12-month period ending June 30, 2021, which just so happens to be the largest wave of migrations in the last 28 years. This was fueled by a remote work culture that has become the norm in all relevant industries.

Interprovincial migration (the difference between residents moving into and out of a region) +34,277 in 2020/21.

For comparison migration rates elsewhere:

• • • Alberta – 11,831
    • Manitoba – 9,685
    • Saskatchewan – 9,410

While BC may be an attractive option in the lifestyle front, calling the mountain-filled province home doesn’t come cheap — especially when it comes to real estate. After all, it’s no coincidence that Metro Vancouver is the eviction capital of Canada. – Storeys

Supply must meet demand and with the recent elections we hope that the Government can help create more supply for the growing demand in BC.

View the full article on Storeys.

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. 

News Provided By
Royal LePage Real Estate Services 
Sep, 28, 2021

Home ownership remains a top priority for many Canadians. While buying a home is seen as a milestone and can improve your quality of life, most are hoping that their purchase will also be a sound financial decision. A recent study¹ has found that, for those who are able to secure a sufficient down payment, it is more financially beneficial to buy a home in Canada than to rent over the long term, in 91 per cent of cases analyzed. The scenarios assume the owner is able to provide a 20 per cent down payment.

“Canadians strongly value home ownership for many reasons. Not only is it a great source of pride, it is likely the largest and most significant financial investment most people will ever make,” said Karen Yolevski, chief operating officer, Royal LePage Real Estate Services Ltd. “Historically, home ownership has been very profitable for Canadians, many of whom have factored their real estate investments into their retirement planning. Owning a home is widely viewed as a means to save money and build equity.”

The study, by economist and housing market analyst Will Dunning, and sponsored by Royal LePage, uses price data for 278 scenarios (broken out by city and housing type) across the country and approaches the commonly-asked question ‘Is it better to buy or rent?’ from various angles – using historical data, future projections, and viewing home ownership as an investment.

“For many people, buying a home – especially the first – is a landmark event and one of the most challenging decisions we’ll make in our lives,” said Will Dunning, president, Will Dunning Inc. “It is a decision that  is usually based on a lot of hard work. This research tests a belief that is held by a lot of Canadians, that owning is better financially than renting. And, it finds that this belief is very often correct.”

While the total monthly costs of owning a home may be higher than renting, there is an important factor to consider. Mortgage payments comprise principal and interest, and the principal component can be seen as a form of saving, albeit forced saving. While the homeowner has to pay the full amount each month, the principal is not a true cost. What’s more, the interest component is largest in the first month and gradually decreases over the life of the loan, effectively increasing the amount of forced saving each month.

In 253 out of 278 cases studied (91%), the net cost of ownership (the total ownership cost minus the saving that occurs through principal repayment) is lower than the cost of renting. In the report, this factor is referred to as the ‘ownership advantage’. As of the second quarter of this year, on average the net home ownership cost was $769 per month less than the cost of renting an equivalent dwelling. In the nine per cent of scenarios where renting was more beneficial than buying, cases were concentrated in luxury homes in expensive neighborhood pockets. Moreover, the monthly savings were minimal for this demographic at $245.²

“While Canadians do want their homes to appreciate, potential homebuyers will find it reassuring that significant price appreciation is not necessary for ownership to be financially worthwhile,” said Yolevski. “There are other benefits to owning a home, in addition to the financial advantages. Owning a property allows more freedom and stability than renting. As a homeowner, you do not have to worry about the landlord hiking up the rent or forcing you to move. And, homeowners have the ability to make a place their own, with renovations or décor. I believe most Canadians would agree that owning a home is as much about laying down roots in a community and making memories with family, as it is about financial security.”

The study tested various scenarios. This includes a mortgage renewal in five years, at an increased interest rate (3.62%, which is based on the highest interest rate seen during the study period from the fourth quarter of 2014 to the present). Even in that scenario, home ownership is expected to remain more affordable than renting in most situations.

“Although supply has reached historic lows and home price appreciation continues to trend upward, the findings of the report show that owning a home remains financially advantageous for most people. However, all Canadians would benefit from swift and material government action to solve the country’s housing supply crisis,” added Yolevski.

To varying degrees, Canadians think of their homes as an investment, and not just a place to live. The study calculated how home ownership might perform as an investment, making varying assumptions about how much values might change during the coming 10 years. The calculations found that even with a 10 per cent decline in home prices, approximately half of the homeowners studied would still see a positive rate of return on investment, while the other half would break even or see a modest loss as an investment.³ If there is no growth in values, ownership would result in a positive rate of return on investment in a majority of cases. Other scenarios in which values rise show increasingly attractive rates of return.

The analysis includes assumptions about the costs of buying and selling homes (closing costs, lawyers’ and real estate agents’ fees, and land transfer taxes), and the major ongoing costs incurred by homeowners (utilities, repairs, homeowners’ insurance and condominium fees, where applicable)

This article was written and published on Newswire.

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. 

The Tri-Cities Chamber of Commerce Business Excellence Awards.Facebook/Tri-Cities Chamber of Commerce

Do you know of a business or businessperson that deserves recognition for their perseverance and dedication?

It’s undoubtedly been another trying season for businesses — big, medium or small — in the region with the COVID-19 pandemic, but the Tri-Cities Chamber of Commerce (TCCC) is hoping to honour those who’ve persevered.

As of Tuesday (Sept. 21), the nomination period is open for the organization’s 2021 Business Excellence Awards with a deadline of Oct. 8.

The award categories, along with nomination criteria and last year’s winners, are listed as follows:

Business Leader of the Year

• 2020 Winner(s)
  • Angela Calla – The Angela Calla Mortgage Team
• Criteria:
  • Has a proven track record of sustained success in his or her field
  • Has had a significant impact on his or her business as evidenced by growth, innovation, and an established reputation as a business leader
  • Demonstrates leadership by way of giving back through participation with local business initiatives and not-for-profit organizations
  • Has a reputation of business excellence and expertise in his or her field
  • Has an innovative spirit and has demonstrated an exceptional level of performance and dedication to leadership

Business of the Year

• 2020 Winner(s)
  • Butter Studios (one to 10 employees)
  • Ballistic Arts Media Studios (11 to 30 employees)
  • Rocky Point Ice Cream (30 or more employees)
• Criteria:
  • Demonstrates an exceptional level of leadership and is regarded as a leader in its industry
  • Demonstrates excellence in performance as evidenced by longevity, retention, financial growth, and reputation (please provide documentation if at all possible)
  • Innovative based on the unique product and/or service it provides to the Tri-Cities, including exceptional customer service and satisfaction, and community services
  • Demonstrates a positive social conscience by utilizing its resources to improve its community through events and initiatives, support of local not-for-profits, and reducing its environmental impact
  • Has an overall positive impact on the Tri-Cities and makes the community a better place to live and work

Business Resiliency Award

• 2020 Winner(s)
  • Legend Haul Supply Co.
  • Novo Textiles
• Criteria:
  • Responded to the pandemic with an exceptional level of leadership
  • Reacted positively to business interruptions during the pandemic
  • Found innovative ways to sustain and grow their business during the pandemic and beyond
  • The business supported its staff throughout the shutdown and pandemic
  • Demonstrates a positive social conscience by utilizing its resources to improve its community

Community Spirit Award

• 2020 Winner(s)
  • Malik Malikzada – Jamila’s Kitchen and Grill
• Criteria:
  • Uses their resources to provide outstanding support to local initiatives and not-for-profit organizations
  • Embodies leadership in community initiatives and has had a significant positive impact on the Tri-Cities community
  • Demonstrates a passion for the community, making a positive difference and giving back
  • Demonstrates an outstanding generous spirit and dedication to making the Tri-Cities a better place to live and work

Not-for-Profit of the Year

• 2020 Winner(s)
  • Immigrant Link Centre Society
• Criteria:
  • Has an established reputation within the community for providing exceptional programs and services
  • Provides innovative programs and services that would not otherwise be available to those in the community
  • Has a strong local impact
  • Has exceptional reach within the Tri-Cities community

Young Professional of the Year

• 2020 Winner(s)
  • Jessica Morrison – Squish Juicery
• Criteria:
  • Embodies leadership and support in community initiatives and has had a significant positive impact on the Tri-Cities community and local businesses
  • Has a proven track record of sustained success, leadership, and growth in his or her field
  • Has had a significant impact on his or her business as evidenced by growth, innovation, and an established reputation as a business leader
  • Has a reputation of business excellence and expertise in his or her field
  • Showcases dedication to his or her company and bettering both the community and him or herself

Environmental Steward of the Year

• 2020 Winner(s)
  • Fulfill Shoppe
• Criteria:
  • Demonstrates an in-depth understanding and an outstanding, cooperative effort to environmental sustainability
  • Is a role model for businesses in environmental sustainability best practices (recycling, composting, energy/water conservation, gardening, etc.)
  • Demonstrates sustainable business practices in its own operations (aside from the product or service for sale)
  • Helps to build environmental awareness and promote environmental stewardship within the Tri-Cities environmental landscape
  • Has milestones and/or measurable accomplishments that demonstrate effective sustainable operations

The Tri-Cities Chamber is encouraging interested residents and entrepreneurs to submit thorough nominations so judges can better determine the finalists.

A celebration is currently planned for Jan. 29, 2022.

For more information, you’re encouraged to visit the TCCC’s website.

Article published by the Tricity News 

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. 

B.C.’s maximum allowable rent increase amount for 2022 is being set at 1.5%, based on inflation.

This increase cannot take effect prior to Jan. 1, 2022. If landlords choose to increase rent, they must provide a full three months’ notice to tenants using the correct notice of rent increase form.

To support British Columbians, the Province enacted a rent freeze at the beginning of the COVID-19 pandemic. The freeze has since been extended to Dec. 31, 2021.

The 2022 maximum allowable rent increase is significantly less than what it would have been prior to changes made by the Province in 2018 that limited rent increases to inflation. Prior to that change, maximum rent increases could include an additional 2% on top of inflation. This change has saved families hundreds of dollars.

B.C. landlords can only increase rent once annually, if they choose to increase rent at all.

The Province also recently banned illegal renovictions (evictions to complete renovations to a property)  by requiring landlords to apply to the Residential Tenancy Branch for pre-approval before ending a tenancy.

Quick Facts:

• If  a landlord served a tenant with a notice of rent increase that takes effect in 2021, it is null and void and the tenant does not have to pay it.
• The maximum allowable rent increase is defined by the 12-month average per cent change in the all-items Consumer Price Index for B.C. ending in July the year prior to the calendar year for which a rent increase takes effect.
  • For example, if a rent increase takes effect in 2022, the maximum allowable rent increase is the 12-month average per cent change in the all-items Consumer Price Index for B.C. ending in July 2021.
• The 2022 maximum increase for manufactured home park tenancies will be 1.5%, plus a proportional amount for the change in local government levies and regulated utility fees.
• The rent increase does not include commercial tenancies, non-profit housing tenancies where rent is geared to income, co-operative housing and some assisted-living facilities.

Published by the Attorney General. View article 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. 

The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent. The Bank is maintaining its extraordinary forward guidance on the path for the overnight rate. This is reinforced and supplemented by the Bank’s quantitative easing (QE) program, which is being maintained at a target pace of $2 billion per week.

The global economic recovery continued through the second quarter, led by strong US growth, and had solid momentum heading into the third quarter. However, supply chain disruptions are restraining activity in some sectors and rising cases of COVID-19 in many regions pose a risk to the strength of the global recovery. Financial conditions remain highly accommodative.

In Canada, GDP contracted by about 1 percent in the second quarter, weaker than anticipated in the Bank’s July Monetary Policy Report (MPR). This largely reflects a contraction in exports, due in part to supply chain disruptions, especially in the auto sector. Housing market activity pulled back from recent high levels, largely as expected. Consumption, business investment and government spending all contributed positively to growth, with domestic demand growing at more than 3 percent. Employment rebounded through June and July, with hard-to-distance sectors hiring as public health restrictions eased. This is reducing unevenness in the labour market, although considerable slack remains and some groups – particularly low-wage workers – are still disproportionately affected. The Bank continues to expect the economy to strengthen in the second half of 2021, although the fourth wave of COVID-19 infections and ongoing supply bottlenecks could weigh on the recovery.

CPI inflation remains above 3 percent as expected, boosted by base-year effects, gasoline prices, and pandemic-related supply bottlenecks. These factors pushing up inflation are expected to be transitory, but their persistence and magnitude are uncertain and will be monitored closely. Wage increases have been moderate to date, and medium-term inflation expectations remain well-anchored. Core measures of inflation have risen, but by less than the CPI.

The Governing Council judges that the Canadian economy still has considerable excess capacity, and that the recovery continues to require extraordinary monetary policy support. We remain committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. In the Bank’s July projection, this happens in the second half of 2022. The Bank’s QE program continues to reinforce this commitment and keep interest rates low across the yield curve. Decisions regarding future adjustments to the pace of net bond purchases will be guided by Governing Council’s ongoing assessment of the strength and durability of the recovery. We will continue to provide the appropriate degree of monetary policy stimulus to support the recovery and achieve the inflation objective.

Information note

The next scheduled date for announcing the overnight rate target is October 27, 2021. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR at the same time.

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. 

We are excited to enter the next season with optimism in BC’s Fall Housing Market. However, we’d like to point out 7 things that people should continue to observe as the season changes over. 

1. A hot pre-sale market

Attractive to young buyers, British Columbia’s pre-sale market is hot and booming. This is perfect for young buyers who are still living at home and saving up for a down payment to own their own homes. We can expect the pre-sale market to continue to be hot and in demand.

2. Demand should continue to outpace supply 

Demand will continue to outpace supply. We know that it can take up to 3 years to complete a development and with rising costs we simply can’t build fast enough in order to keep up with our current market’s demand. This topic continues to be a major issue especially because our policies make it so difficult for developers to build faster.

3. Low interest rates will continue to fuel demand

Low interest rates will indeed continue to fuel demand as it is a great incentive. You may have heard talk about the possibility of inflation in the short term and it has definitely been higher than what we’ve seen in the last few decades. We would caution you for now especially with things just beginning to open up from the turmoil COVID-19 has caused us, health wise and economic wise. It may be too early to proceed with things as we go into another wave of COIVD-19. We have more information about this topic here which can really illustrate what’s happening right now. 

4. Competition from expatriates 

This is definitely a hot issue that will continue through to this fall and of course, is a vital topic in politics with elections warming up. How might each party respond to foreign investors who take advantage of our hot market? Will the Government ban foreign buyers from purchasing property? The impact this has on our real estate is vast and many houses are left without occupation. Many Canadians are looking to own their own home, if this trend continues the market will continue to inflate. We have each political plan here on our blog. 

The NDP: How They Plan to Tackle the Housing Crisis if Elected

The Liberals: How They Plan to Tackle Housing if Re-Elected

The Conservatives: How They Plan to Tackle the Housing Crisis if Elected

5. A new wave of renters and buyers could enter the market 

We have a new wave of renters and buyers that are entering the market. Those who are immigrating into the country and those who are of generational age are ready to rent and purchase homes this fall. We continue to welcome 400,000 immigrants per year with a total of 1.2 million people as a set goal by the Canadian Government. The increase in renters will encourage investors to continue to invest in our cities which will create a busier rental market over all.

6. Quality offers 

Quality offers will continue to prevail but the good news for new buyers is that their won’t be many offers to compete against. Canadians however will continue to increase their financial literacy and education which will help better their knowledge on planning and taking the proper steps towards their goals. Having clarity on the options around you will aid in the maintenance of quality offers.

7. Optimism should remain high

Optimism should remain high because it is a top priority among many Canadians because it stabilizes them financially and secures the future of their equity. Working with the correct professionals will ensure that you’re prepared for this fall housing market.

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.