The Bank of Canada, this morning, released its January Monetary Policy Report (MPR), showing they expect to keep overnight interest rates at its “effective lower bound” of 0.25% until 2023. To reinforce this commitment and keep interest rates low across the yield curve, the Bank will continue its Quantitative Easing (QE) program–buying $4 billion of Government of Canada bonds every week until the recovery is well underway. The central bank indicated it could pare purchases once the recovery regains its footing.

According to the Bank’s press release, “The Governing Council will hold 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 our projection, this does not happen until into 2023.” Officials are apparently optimistic about the economy’s prospects once the vaccine is sufficiently distributed and injected. There is no indication that they are planning additional measures to ease monetary policy.

This is particularly noteworthy for two reasons: 1) some economists had been speculating that the Bank would lower the overnight rate by 10-to-15 basis points to help mitigate the impact of continued and broadening lockdowns; and, 2) others thought the early development of the vaccine would trigger sufficient growth to warrant a rate hike in 2022. In the Bank’s current view, neither is likely to be the case. Why mess with a minute cut in already record-low interest rates when mortgage lending is still strong? The slow rollout of the vaccine and the mounting second wave of cases assure weak economic activity in Canada at least until the second half of this year.

As well, inflation remains surprisingly muted. In a separate release today, Stats Canada revealed that price pressures in Canada unexpectedly slowed in December as the country endured a new wave of lockdowns. After climbing to the highest since the pandemic in November, the latest reading shows price pressures are still well below the Bank of Canada’s 2% target. That’s consistent with the view from policymakers that inflation will remain subdued for some time.

The pandemic’s second wave has hit Canada very hard, and the vaccine rollout has been disappointing. Today’s MPR predicts that the economy will contract in the first quarter of this year. Economic weakness could be exacerbated by the Canadian dollar’s strength, which moved to above 79 cents US following today’s BoC announcement. Ten-year yields edged up modestly as well.

Bottom Line

For the year as a whole, economic growth is expected to be around 4% in 2021, compared to a contraction of -5.5% last year. As the inoculated population grows, the Bank forecasts an acceleration in growth to just under 5% in 2022 and a more-normal 2.5% in 2023. According to the January MPR, “The medium-term outlook is stronger than in the October Report because of vaccines’ positive effects, greater fiscal stimulus, stronger foreign demand and higher commodity prices. Meanwhile, potential output has also been revised up, reflecting an improved projection for business investment and less scarring effects on businesses and workers. There is considerable uncertainty around the medium-term outlook for GDP and the path for potential output. Thus, while the output gap is expected to close in 2023, the timing is particularly uncertain.”

Concerning housing activity, the report said, “Demand for housing has continued to show resilience, despite increasing case numbers and tightening restrictions. Housing activity should remain elevated into the start of 2021, supported by low borrowing rates and resilient disposable incomes. Changes in homebuyers’ preferences have also played a role. For example, price growth has been strongest for single-family homes and in areas outside city centres”. 

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 2021 Home Owner Grant threshold is set at $1.625 million, ensuring the same percentage of British Columbia homeowners continue to be eligible.

New in 2021, the Province is taking over full administration of the grant program to ease the burden on municipalities. The Province already administers the grant for rural homeowners. Homeowners in all municipalities will now submit their applications directly to the Province instead of through their municipal office. Similar to previous years, applications will open in May when a majority of property tax notices are received.

As in previous years, homeowners are reminded to keep their property assessment notice from BC Assessment or property tax notice from their municipality. They will need their roll and jurisdiction number from their notice to apply for the Home Owner Grant with the Province.

The grant is reduced by $5 for every $1,000 of assessed value above the threshold. Some low-income seniors, veterans and people with disabilities can also apply for a supplement that replaces any grant amount they lose due to the value of their home being over the threshold.

The grant amounts for 2021 for homeowners in Metro Vancouver, the Fraser Valley Regional District and Capital Regional District are:

• up to $570 for the basic Home Owner Grant; and
• up to $845 for homeowners who are 65 years or older, or the homeowner is a person with a disability or lives with a relative who has a disability.

The grant amounts for 2021 for homeowners located in a northern or rural area (outside Metro Vancouver, the Fraser Valley Regional District and the Capital Regional District) are:

• up to $770; and
• up to $1,045 for homes in northern or rural areas where the homeowner is 65 years or older, or the homeowner is a person with a disability.

Homeowners may also be eligible for property tax deferment if they are 55 years or older or are financially supporting a dependent child.

Learn More:

To find out more about Home Owner Grant centralization starting this year, visit:
https://www2.gov.bc.ca/gov/content/taxes/property-taxes/annual-property-tax/home-owner-grant

To find out whether you qualify for property tax deferment, visit:
https://www2.gov.bc.ca/gov/content/taxes/property-taxes/annual-property-tax/defer-taxes

People with questions about their assessed property values, including questions about challenging assessments, can contact BC Assessment: https://www.bcassessment.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. 

GOVERNMENT UPDATES
January 7, 2021

PROVINCIAL GOVERNMENT UPDATE

Provincial Health Order Extended

By order and direction of the PHO, individuals and businesses in B.C. must significantly reduce social interactions and travel, all events and social gatherings are suspended to significantly reduce COVID-19 transmission related to social interactions and travel.

The order is in effect until February 5, 2021 at midnight.

More information can be found here.

The BC COVID-19 Recovery Benefit online applications are open

The BC Recovery Benefit is a one-time direct deposit payment for eligible families, single parents or individuals. Benefit eligibility is based on net income from your 2019 tax return. This benefit is a tax-free payment of up to $1,000 for eligible families and single parents and up to $500 for eligible individuals. You must apply to receive the benefit, and you have until June 30, 2021 to apply:
https://www2.gov.bc.ca/gov/content/economic-recovery/recovery-benefit

PREVIOUS UPDATES

Click here to see previous updates.

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. 

Top 3 Financial Points to Consider!

The last Bank of Canada announcement solidified as expected. Prime will stay the same for the coming months. Additionally, they’ve been forced they to take extreme monetary measures to keep the economy going.

What does that mean and how will homeowners be supported?

If you have a variable rate, enjoy the savings!  But keep in mind once we see the economic climate improve, we can expect rates to rise. Whenever you hear “good” economic news, that’s the trigger to know a rise in rates is coming.

Mortgage rates are at rock bottom. A major bank (HSBC) came out with a variable rate below 1%! It’s a quick flash in the now as the promotion ends Jan 4^th and is only valid on:

• purchases before Jan 4^th
• must have CMHC insurance
• a purchase price of less than $1 million
• and 25-year amortization

The bank figures only 10% of those who apply may be eligible.

The cost of groceries is set to rise $700 a year for the average Canadian, slightly due to COVID-19, but mainly due to the weather extremes of drought and wildfire in the regions where we import meat, veggies, and supplies for the bakery.

So how does the average consumer make 2021 a money-saving year?

Try to plan your meals ahead to reduce waste and choose frozen veggies over fresh ones (they have the same nutrient values for a fraction of the cost)! Those who own a home are in a unique position to reviewing their existing mortgage to ensure you have your wealth and equity working to your best advantage. Right now approximately 75% of mortgage payments go towards their principal balance with today’s low-interest rates which, of course, will help keep your hard-earned cash in your wallet. Follow these top 3 financial points and be sure to commandeer your wealth!

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. 

I learned the concept of saving by using time as my best asset when I was young; plus, I loved real estate. I loved what it did for our family who emigrated here and found it as a bigger sense of security for us.”

Angela Calla

As an award-winning “woman of influence” and mortgage expert frequently ranked among the top 10 brokers in Canada, Angela Calla is clearly at the height of her game.

Growing up in North Vancouver Angela embarked on her career path as one of the founding brokers of Dominion Lending Centre in 2006.

Today, alongside her team, she continues to actively and passionately assist mortgage holders to obtain the best deals.

Where did the journey begin?

“As soon as I hit the double digits, my parents talked to me about how important it was to start saving to own a home when you’re younger, rather than older, because real estate prices were so expensive,” Angela says.

“I learned the concept of saving by using time as my best asset when I was young; plus, I loved real estate. I loved what it did for our family who emigrated here and found it as a bigger sense of security for us.”

But while she may have surmised that something within the real estate arena would ultimately forge her career; knowing the exact role wasn’t immediate.

“While I loved real estate, I wasn’t drawn to being a real estate agent,” she adds.

“When I was working for another company—fresh out of high school—I had the opportunity to chair the North Shore Business Club… and at that point I learned what a mortgage broker did.”

Angela adds: “My parents were early adapters of using a mortgage broker in the early ‘90s, and it allowed them to qualify for a bigger home and more options.

“For me that was the perfect career choice. It allowed me to marry my passion for real estate with a passion for advocating for consumers, [ultimately allowing] for multiple options to get them to their end goal. What I loved most about mortgages was that the service was free for consumers.”

And for those that have engaged in the market, the role of a mortgage broker such as Angela is vital.

“The best thing about what we do as mortgage brokers is we get people the power of choice. Most Canadians can only list about a half dozen banks, but in actuality there are dozens of banks and financial institutions out there. However, all the banks only deal with licensed professionals.

“We take away all the marketing and work on the black-and-white numbers, based on your lifestyle, your income and your profile.”

Angela goes on to point out that brokers match consumers with the best lender and the best options. She says this gives people power and actually helps educate accountants and lawyers about available options. This is important, she says, because they’re generally very influential in people’s decision-making process.

“So people coming out of divorces can have different mortgages; self-employed and first-time home buyers have different access to different mortgages, and there are about 30 things that determine what is the best fit for each client.”

Angela is also quick to point out that without the sound advice of professionals in the field, one can often miscalculate the best plan of attack.

“Most people have made the costly mistake of thinking it’s the interest rate,” she says. “But the most important aspect is actually the terms, along with the interest that you pay, in combination with how your income is sourced—that’s a very important point.”

An industry expert on TV and radio and the go-to source for publishers across Canada, Angela is also a best-selling author of The Mortgage Code, available on Amazon in Canada and the US. Proceeds from sales are donated to a local, rotating charity each year.

She is also a magazine contributor and a guest speaker; she recently collaborated to publish her second book, Dynamic Women Success Secrets, and is working on her third collaboration called Pursuit: 365, which will be released March 2021.

It’s a lot on the proverbial plate, and it comes in addition to juggling a home life with two children.

And to prove her value as one of the best in the business class, just three months ago Angela surpassed one billion dollars in funded personal mortgage volumes—at just 37 years of age.

So we had to ask her to impart her sage advice for those getting into the market.

“Consumers often think shopping different lenders is the smart thing to do,” she says, “and it is, when it’s done through a mortgage professional. What they might not be aware of is shopping around on their own can negatively impact their credit score!  One of the major benefits of using a mortgage broker is that we submit the same single application to multiple lenders and that protects credit scores.”

See the 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. 

This morning in its 10^th and likely final policy decision of 2020, the Bank of Canada left its target overnight benchmark rate unchanged at what it describes as its “lower bound” of 0.25%. As a result, the Bank Rate stays at 0.5% and the knock-on effect is that borrowing costs for Canadians will remain low for the foreseeable future.

The Bank also updated its observations on the state of the economy, both in Canada and globally and pledged to continue to support market liquidity through its quantitative easing program.

These are the highlights of today’s Bank of Canada announcement:

• Economic momentum heading into the fourth quarter appears to be stronger than was expected in October but, in recent weeks, record high cases of COVID-19 in many parts of Canada are forcing re-imposition of restrictions, which can be expected to “weigh on growth in the first quarter of 2021 and contribute to a choppy trajectory until a vaccine is widely available”
• Near term, waves of COVID-19 are expected to “set back recoveries” in many parts of the world
• It is maintaining what it calls its “extraordinary forward guidance,” reinforced and supplemented by its QE program, which continues at its current pace of “at least” $4 billion per week
• The labour market continues to recoup the jobs that were lost at the start of the pandemic, albeit at a slower and “highly uneven pace” across different sectors and groups of workers
• Commodity prices, including for oil, are being pushed by up stronger demand
• A broad-based decline in the US exchange rate has contributed to a further appreciation of the Canadian dollar
• The federal government’s recently announced measures should help maintain business and household incomes during this second wave of the pandemic and support the recovery

Of note, the Bank of Canada commented on a pick up – to 0.7% – in CPI inflation in October, largely reflecting higher prices for fresh fruits and vegetables. This suggests a “slightly firmer track for inflation” in Q4 but measures of core inflation are all below 2%, and “considerable economic slack” is expected to continue to “weigh on inflation for some time.”

Looking ahead

The Bank’s Governing Council acknowledged that Canada’s economic recovery continues to require “extraordinary monetary policy support.” Accordingly, it will hold its policy interest rate at the lower bound until economic slack is absorbed so that the Bank’s 2% inflation target is sustainably achieved.

In its October projection, the BoC suggested that the inflation target may be achieved “into 2023.” It provided no further update on this projection. It did however reiterate its commitment to keep interest rates low across the yield curve by using its QE program until the recovery is well underway.

BoC’s next scheduled policy announcement is January 20, 2021. We will provide an update following that announcement and as always, you can find other capital market insights on the Resources page of this website.

Read the full Bank of Canada Press Release 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. 

Being on the path to purchasing your first home is one of the most exciting and most rewarding moments in life! While people don’t always dream of the perfect mortgage, we do grow up dreaming of a white picket fence and our dream home. Even if you imagined your dream home as a 6-bedroom mansion, we all have to start somewhere!

This first-time home buyer section will take you through the important steps and considerations for your first home, including:

• Determining whether you are ready for home ownership
• Costs of home ownership
• The process of buying your first home
• Securing your down payment
• Mortgage pre-qualification and pre-approval
• Financial Approval
• Closing day

Let’s get started.

 Are You Ready for Home Ownership?

Before you jump on in, there are some things you should ask yourself. As amazing as it is to be a first-time home buyer, it is important to remember that this is likely the largest financial decision you will ever make. There are a few questions you can ask yourself to make sure you’re ready to take this incredible leap!

1. Are you financially stable?
2. Do you have the financial management skills and discipline to handle this large of a purchase?
3. Are you ready to devote the time to regular home maintenance?
4. Are you aware of all the costs and responsibilities that come with being a homeowner? Let’s find out!

Do You Know the Costs?

There are two major costs associated with home ownership – let’s make sure you’re ready to take it on!

Upfront Costs: The initial amount of money you need to buy a home, including down payment, closing costs and any applicable taxes.

Ongoing Costs: The continued cost of living in a home you own, including mortgage payments, property taxes, insurance, utility bills, condominium fees (if applicable) and routine repairs and maintenance. It is also important to keep in mind potential major repairs, such as roof replacement or foundation repair, that may be needed now or in the future. In addition, if you choose a property that is not hooked up to municipal services (such as water or sewer) there may be additional maintenance costs to consider.

Buying Your First Home

If you’ve decided to take the plunge, you now need to start by figuring out what you can afford. Fortunately, there are all kinds of calculators and tools available. A great place to start is the free My Mortgage Toolbox app which can help you find a mortgage professional in your area. A mortgage professional is a great alternative to traditional banks and can help you find the best rate in the market, as well as save you time by doing the leg work for you!

The Down Payment

Regardless of whether you choose a mortgage professional or traditional bank, the first step begins with your down payment.

The minimum down payment on any mortgage in Canada is 5 percent but putting down more is beneficial whenever possible as it will lower the amount being borrowed. However, if you can only afford the minimum that is perfectly okay! Just remember, if you are putting down less than 20 per cent to purchase your home, default insurance will be mandatory to protect the investment.

Ideally, individuals looking to purchase their first home will have built up a nest egg of savings that they can apply towards a down payment. However, we know this is not possible for everyone so if you don’t have it all saved, don’t worry! Besides being a vital savings plan for retirement, RRSPs can be a great resource for first-time home buyers and can be cashed in up to $35,000 individually towards a down payment. In fact, most mortgage professionals will tell you nearly half of all first-time buyers use their RRSPs to help with the payment. Those first-time buyers who choose this option will have 15 years to pay it back and can defer these payments for up to two years if necessary. Always remember though, deferring a payment can increase the time to pay off the loan and you will still owe the full amount!

Another option for securing your down payment is a gift from an immediate family member, typically a parent. All that is required for this is a signed Gift Letter from the parent (or family member providing the funds) which states that the money does not have to be repaid and a snapshot showing that the gifted funds have been transferred.

Mortgage Pre-Qualification

Once you have your down payment and are ready to realize the dream of owning your first home, you must get pre-qualified!

This process provides you with an estimate of how much you can afford based on your own report of your financial situation. The benefit of this is that it sets the baseline for a realistic price range and allows you to start looking for that perfect home within your means! Now this process is not a mortgage approval, or even a pre-approval but it helps to establish your budget. You must supply an overview of your financial history (income, assets, debt and credit score) but the real requirements come with the pre-approval process where you submit your actual documentation.

Mortgage Pre-Approval

While this may seem similar to pre-qualification, the pre-approval process requires submission and verification of your financial history to ensure the most accurate budget to fit your needs.

As a result, getting pre-approved can help determine:

• The maximum amount you can afford to spend
• The monthly mortgage payment associated with your purchase price range
• The mortgage rate for your first term

Not only does getting pre-approved make the search easier for you, but helps your real estate agent find the best home in your price range. Temptation will always be to start looking at the very top of your budget, but it is important to remember that there will be fees, such as mandatory closing costs, which can range from 1 to 4% of the purchase price. Factoring these into your maximum budget can help you narrow down a home that is entirely affordable and ensure future financial stability and security.

Getting pre-approved doesn’t commit you to a single lender, but it does guarantee the rate offered to you will be locked in from 90 to 120 days which helps if interest rates rise while you are still shopping. If interest rates actually decrease, you would still be offered the lower rate. Another benefit to pre-approval is that, when it comes time to purchase, pre-approval lets the seller know that securing financing should not be an issue. This is extremely beneficial in competitive markets where lots of offers may be coming in.

PROTECTING YOUR PRE-APPROVAL

• Refrain from having additional credit reports pulled once you have been pre-approved
• Refrain from applying for new credit, closing off credit accounts or making large purchases until after the sale is complete
• Be prepared to show a paper trail – any unusual deposits in your bank account may require explanation. Also, if your down payment comes from savings, the bank will want 90 days of statements to ensure the funds are accounted for.

Financial Approval

You’re almost there! Financial approval is the last step to getting your mortgage and buying your first home! You will need to keep in mind that just because you are pre-approved, it doesn’t guarantee that the final mortgage application is approved. Being entirely candid with your home-buying team throughout the process will be vital as hidden debt or buying a big-ticket item during your 90-120-day pre-approval can change the amount you are able to borrow. It is best to refrain from any major purchases (such as a new car) or life changes (such as changing jobs) until after closing and you have the keys to your new home!

Closing Day

Phew, you made it. Closing day is one of the most exciting moments where all the house hunting and paperwork really pays off! It is on this day that you will want to make use of your lawyer or a notary.

To complete the process of closing the sale, your lender gives your lawyer the mortgage money. You would then pay out the down payment (minus the deposit) and the closing costs (typically 1 to 4% of the purchase price). Typically, this payment is done through a bank draft, which will require a bank run ideally 10 days before closing, which is then brought to the lawyer on your closing date. From there, the lawyer or notary then pays the seller, registers the home in your name and gives you the deed and the keys!

Congratulations, you are now a home owner!!

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth. Additionally, in August of 2020 she surpassed $1 Billion dollars in funded personal mortgage volume at the young age of 37.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. She has even been known to sign the national anthem at sporting events! On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or 604-939-8777.