At 10 am eastern, the Bank of Canada made its nineth interest rate decision of the year. While the overnight rate did not change – it remains at just 0.25 percent, which is great news for borrowers – the Bank’s commentary about the outlook for Canada’s economy did.

In particular, the Bank announced it will hold its policy interest rate at what it calls the effective lower bound until economic slack is absorbed. In its current projection, the Bank does not expect this to happen until into 2023.

Assuming inflation does not rise to 2% on a sustainable basis, this could mean several more years of low borrowing rates.

To provide greater insight into this latest announcement, First National summarized the Bank’s statement here for easy reference.

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 sing 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.

The previously known Genworth has changed its name to Sagen. They have re-branded to tell their story:

“Well for us, this was a great opportunity to do something we’d never done before… to tell our own story. After talking with our employees and customers during this brand renewal, we heard some pretty amazing things about our incredibly high service level, our thought leadership on industry developments and product development, and the fantastic teamwork demonstrated by our incredible staff. We knew that while our visuals would change, these qualities are part of our story and will live forever.

We’ve been one of Canada’s leading mortgage insurance providers for over 25 years and have helped millions of Canadians realize their dreams of homeownership. We are driven by a desire to be the most trusted provider for the lending community across Canada. We couldn’t be more proud of what we’ve accomplished so far but more importantly, the great things we’ll achieve in the future.”

Information about their transition can be found here.

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.

COVID-related Mortgage Deferrals are coming to an end.

What does this mean for me?

Your payments will return to normal and increase to include a portion of the deferred payment.

If you are back to work and have accumulated debt outside your mortgage, you may qualify to re-structure your existing mortgage so you can payout some higher interest debt and take out some extra equity to have an emergency fund handy should we see anything like this again.

If I am an landlord, what are my rights with my tenant?

Now that the emergency order is over, any deferred rent is due over an above regular rent and they have until July 10^th, 2021 to pay back outstanding rent installments.

Landlords will now have an option to report rent to the credit bureau as well. Landlords will be able to access this in the future to get a deeper picture of a tenant, and tenants will now have to carry less credit for mortgage approval which can help up to 33% of Canadians!

How do I protect myself moving forward if a financial or health emergency comes up?

We recommend setting up an auto payment plan that takes from the concept of “paying yourself first”. A simple pre-authorized debit into the proper investment vehicle will help you with taxes that are due from anyone who received CERB (tax bill is coming for that), as well as setting up an emergency fund.

Tax time and your mortgage:

How do we prepare and protect ourselves moving forward?

CERB is taxable so if you have your new budget in place to “pay yourself first” you will have a buffer for that and be ready.

If you have been working from home during this time, a portion of your mortgage may be tax deductible, along with any other funds used for an arms length investments.

How will lenders report deferrals moving forward?

Any payment deferrals made after the end of CERB will follow most lenders normal practice. While no more deferrals will be granted at this moment in time under the federally supported program, missed or differed payments required now, will show as late payments on your credit and will negatively impact your future costs of borrowing.

We highly recommend looking at other customized solutions (such as accessing your equity) if you have debt outside your mortgage or need an emergency fund.

Do I have all government grant available to me?

We’re in a time where it’s essential to be hands on with your finances.  In conjunction with your mortgage professional, a financial planner and/or accountant and ask them their recommended proactive steps – try to avoid just handing them a document package at the end of the year.

Be upfront about changes in your marital status, health, income changes, and any renovations done to your home. This will ensure you are all on the same page and protected no matter what life changes happen on your journey.

If you or a loved one are looking for guidance managing these changing times, we are always here to help. Reach out to us at hello@countoncalla.ca and we’ll put a plan in place to ensure you’re set up for success. You are not alone. ❤

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.

The Liberal government intends to create thousands of jobs by supporting retrofits of homes and buildings and investing in reducing the impact of climate-related disasters, like floods and wildfires, as part of a modest green agenda announced in the speech from the throne today.

Indicating a plan to build “a more resilient Canada,” the government will “help deliver more transit and active transit options,” the speech stated.

Canada’s 150th speech from the throne was read today in the Senate Chamber by Gov. Gen. Julie Payette with the prime minister at her side. There was no direct mention of significant stimulus infrastructure spending.

The government will immediately bring forward a plan to exceed Canada’s 2030 climate goal, the speech indicated, and the government will also legislate Canada’s goal of net-zero emissions by 2050.

Communities will be supported through investments in “all types of infrastructure, including public transit, energy efficient retrofits, clean energy, rural broadband, and affordable housing, particularly for Indigenous peoples and northern communities.”

To help the economy recover from the COVID-19 pandemic, the Liberals pledged to launch a campaign to create over one million jobs, restoring employment to previous levels. A range of tools will be employed, including direct investments in the social sector and infrastructure, immediate training to “quickly skill up workers,” and incentives for employers to hire and retain workers.

Businesses will also be assisted with an extension of the Canada Emergency Wage Subsidy through to next summer.

“The government will work with businesses and labour to ensure the program meets the needs of the health and economic situation as it evolves,” Payette said.

The government also announced an acceleration of the Universal Broadband Fund and said it would be making “substantial investments” in housing.

Payette stated the government will supplement its National Housing Strategy by increasing investments to rapid housing in the short term and partnering with not-for-profits and co-ops in the mid- to long-term. The government will also move forward with enhancements to the First-Time Home Buyer Incentive.

“Construction projects create jobs, and having a home is critical so people can contribute to their communities,” Payette said.

The government also announced a transition of the Canada Emergency Response Benefit program to the Employment Insurance (EI) system.

For people who would not traditionally qualify for EI, the government will create the transitional Canada Recovery Benefit. Over the coming months, the EI system will become the sole delivery mechanism for employment benefits, including for Canadians who did not qualify for EI before the pandemic.

Business supports announced, in addition to extending the wage subsidy, include expanding the Canada Emergency Business Account to help businesses with fixed costs, improving the Business Credit Availability Program, and introducing further support for industries that have been the hardest hit, including travel and tourism, hospitality and cultural industries.

Early reaction included a statement from the Mechanical Contractors Association of Canada (MCAC).

“With today’s Throne Speech, we are optimistic that the federal government has laid the groundwork to work closely with industry in the rebuilding of the Canadian economy,” said Dave Holek, MCAC president. “We are actively reviewing the details from today’s speech, and are working diligently on an action plan to partner on strategic initiatives that will benefit all Canadians.”

The speech was delivered 39 days after Trudeau prorogued parliament.

Read more on the speech from Dr. Sherry Cooper OR from the source here.

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.

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. 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.

OSFI recently announced they are winding down the COVID-19 related relief for deferred mortgage payments. It’s important to note that if you request to defer your mortgage moving forward it may negatively affect your credit.

Here are some questions we answered to help you better understand the process. While it’s not ideal, a mortgage deferral may help you navigate through these challenging times.

What is a mortgage payment “deferral”?
A mortgage payment deferral means that you will not be required to make regular payments on your mortgage (principal and interest) for an agreed-on, temporary amount of time. Once a mortgage deferral period ends, your mortgage payments go back to normal and the missed payments (including principal and accumulated interest) will need to be repaid. For an illustration on how deferrals work click here.

Property tax installments and insurance premiums are entirely separate from this program and must continue to be paid.  If municipalities and insurance companies offer similar programs, they should be contacted separately.

How do I apply for a mortgage payment deferral?
Every lender will have their own application form required to process your deferral. Contact your mortgage broker or lender directly to begin the process.

How do I apply to extend my existing mortgage payment deferral?
If you would like to re-apply to have your existing payment deferral period extended you will have to re-apply for the deferral. This may also negatively effect your credit.

How do I cancel my existing mortgage payment deferral?
If your financial situation has improved (congratulations!), and you would like to cancel your deferred payments (i.e. resume making regular principal and interest payments) contact your lender directly and they will provide you with the cancellation form.

Are the deferred payments erased or cancelled?
The mortgage deferral agreement does not cancel, erase or eliminate the amount owed on your mortgage. At the end of the deferral period, the deferred payments will continue to accrue interest and will be added to the outstanding principal of your mortgage. This can affect the total amount you owe in accordance with your original payment schedule.

What can I expect at the end of my mortgage deferral?
At the end of your mortgage deferral period, the total amount owing on your mortgage will be higher due to the interest that has accrued. Your payment amount will be the same as it was before the deferral period unless it is required to be adjusted to ensure the mortgage maintains the remaining amortization period with the new higher outstanding balance. The amount of all your deferred payments will be added to your mortgage balance when your mortgage renews and paid off during the remaining amortization, or if you pay out your mortgage. You can also contact us after your deferral period and increase your payment amounts/frequency to pay it off during your term if you prefer.

Am I eligible for mortgage payment deferral?
You may be eligible for a mortgage payment deferral if you or another party on title of the mortgage have become unemployed or experience a material reduction in income due to COVID-19. The program is administered on a case-by-case basis to individuals whose mortgages are in good standing.

Should I defer my mortgage payments?
Individuals considering this option should give it careful thought and recognize that the program is designed to alleviate temporary hardship due to the impact of COVID-19 and is not mortgage forgiveness.

The interest, which would otherwise be part of your regular mortgage payments, is added to the outstanding balance of the mortgage. Depending on the current position of your finances, it may be better to continue with your mortgage payments if you are able to do so. However, if you really are in a predicament because of the COVID-19 crisis where the disruption of cash flow is preventing you from making a mortgage payment, a deferral might be your best route.

Can I renegotiate my mortgage terms to while in deferral?
No, the lenders want to see deferrals canceled prior to granting any mortgage approval to change or or increase the mortgage.

Are property taxes and other lender-coordinated payments included in the deferral? 
Under the deferral program, only the mortgage payment (principle and interest) is deferred.  Other payments regularly withdrawn with the mortgage payment by the lender, such as property taxes or life-disability insurance, are not included in the deferral and must continue to be paid. If municipalities and insurance companies offer similar deferral programs, they should be contacted separately.

If I have mortgage arrears/previous missed payments can I still qualify for payment deferral?
Clients with over 90 days arrears may not eligible for the deferral program.

My mortgage is for a rental property, can I qualify for payment deferral?
Rentals will often be handled on a case-by-case basis depending if it is an insured or uninsured mortgage and if true financial hardship can be demonstrated.

If you have tenants that are unable to make payments due to the pandemic we encourage looking into tenant relief programs introduced by some provincial governments. Rental property owners should strongly encourage their tenants who have been financially impacted due to COVID-19 to apply for these programs if available.

No matter what happens in your life journey, we have options to help you. Know we will always be here to help. If any changes arise for you or your loved ones please don’t hesitate to contact us at hello@countoncalla.ca.

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.

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. 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.

The Bank of Canada today maintained its target for the overnight rate at the effective lower bound of ¼ percent. The Bank Rate is correspondingly ½ percent and the deposit rate is ¼ percent. The Bank is also continuing its quantitative easing (QE) program, with large-scale asset purchases of at least $5 billion per week of Government of Canada bonds.

Both the global and Canadian economies are evolving broadly in line with the scenario in the July Monetary Policy Report (MPR), with activity bouncing back as countries lift containment measures. The Bank continues to expect this strong reopening phase to be followed by a protracted and uneven recuperation phase, which will be heavily reliant on policy support. The pace of the recovery remains highly dependent on the path of the COVID-19 pandemic and the evolution of social distancing measures required to contain its spread.

The rebound in the United States has been stronger than expected, while economic performance among emerging markets has been more mixed. Global financial conditions have remained accommodative. Although prices for some commodities have firmed, oil prices remain weak.

In Canada, real GDP fell by 11.5 percent (39 percent annualized) in the second quarter, resulting in a decline of just over 13 percent in the first half of the year, largely in line with the Bank’s July MPR central scenario. All components of aggregate demand weakened, as expected.

As the economy reopens, the bounce-back in activity in the third quarter looks to be faster than anticipated in July. Economic activity has been supported by government programs to replace incomes and subsidize wages. Core funding markets are functioning well, and this has led to a decline in the use of the Bank’s short-term liquidity programs. Monetary policy is working to support household spending and business investment by making borrowing more affordable.

Household spending rebounded sharply over the summer, with stronger-than-expected goods consumption and housing activity largely reflecting pent-up demand. There has also been a large but uneven rebound in employment. Exports are recovering in response to strengthening foreign demand, but are still well below pre-pandemic levels. Business confidence and investment remain subdued. While recent data during the reopening phase is encouraging, the Bank continues to expect the recuperation phase to be slow and choppy as the economy copes with ongoing uncertainty and structural challenges.

CPI inflation is close to zero, with downward pressure from energy prices and travel services, and is expected to remain well below target in the near term. Measures of core inflation are between 1.3 percent and 1.9 percent, reflecting the large degree of economic slack, with the core measure most influenced by services prices showing the weakest growth.

As the economy moves from reopening to recuperation, it will continue to require extraordinary monetary policy support. 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. To reinforce this commitment and keep interest rates low across the yield curve, the Bank is continuing its large-scale asset purchase program at the current pace. This QE program will continue until the recovery is well underway and will be calibrated to provide the monetary policy stimulus needed to support the recovery and achieve the inflation objective.

PRESS RELEASE

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.

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. 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.

A federal financial regulator announced Monday it is winding down COVID-19-related relief for banks offering deferred mortgage payments, a move the watchdog says comes as lenders are in a better spot to start offering “business-as-usual alternatives” again to cash-strapped customers.

The Office of the Superintendent of Financial Institutions (OSFI) has allowed federally regulated lenders during the coronavirus pandemic to treat loans on which the payments are being deferred as performing, or still being paid back.

This special treatment, which meant capital requirements for banks wouldn’t rise because of deferrals, was allowed for up to a maximum of six months. However, OSFI said Monday that it is phasing out the special deferral treatment.

“While the special capital treatment and regulatory flexibility related to payment deferrals was warranted at the onset of COVID-19, as both lenders and borrowers adapted to the extraordinary circumstances and unprecedented disruptions related to the pandemic, banks are now in a better position to employ their business-as-usual alternatives to support troubled borrowers,” the regulator said in a letter to banks.

OSFI now says that loans granted payment deferrals before Aug. 31 are still eligible for six months of the special treatment, but those granted after Aug. 30 and on or before Sept. 30 will be eligible for only up to three months. Any deferrals after Sept. 30 will not be eligible, the regulator said.

The tweaks by OSFI come after more than 760,000 Canadians have deferred or skipped a mortgage payment during the pandemic, which is about 16 percent of the number of mortgages in bank portfolios, according to the Canadian Bankers Association.

OSFI’s changes also follow most of Canada’s biggest banks reporting last week better-than-anticipated earnings for their fiscal third quarter. One of the reasons for the improved financial results for the three months ended July 31 was that the lenders set aside less cash for possible loan losses.

There are indications as well that most customers who stop deferring payments will start making them again.

CONTINUE READING

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.

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. 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 callateam@countoncalla.ca or 604-939-8777.

Things to consider prior to making a prepayment

Paying down your mortgage is a smart step that’s always encouraged.
We recommend you first consider the following for your financial well-being as making a lump-sum pre-payment on a mortgage is one sided. Once you’ve made the payment, there are only two ways to get the money back out. Sell or pay an exit fee to refinance.

This is what you should consider prior to a lump-sum payment:

1- Do you have any debts at an interest rate higher than your mortgage you can use the money for instead to stop paying unnecessary interest?

2- Do you have six months of living expenses set aside so you don’t have to acquire debt if something comes up?

3- Have you topped up your RRSPs or RESP if applicable to take advantage of any government matching programs or tax advantages that can result in an income tax refund?

4- Are you looking at doing any home renovations, new vehicle purchase or job changes in the next while?

5. Are you considering making another property purchase in the next while (as you will need a deposit handy in cash)

If all the above are covered, that’s awesome and congratulations in having this capital to pay down your largest debt! All lenders have different pre-payment terms and timing in which they allow. The goal is to get the most flexible mortgage initially, and we can help. This is the reason when The Angela Calla Mortgage Team sets up a mortgage initially, we start with the minimum payment, while other increases are happening separately once we have a strategy in place. If you decide to execute a pay down strategy with periodic payments, we can cancel that at any time with no costs. There is always a reason behind “why” we ask what we ask and “why” we set things up as we do initially with the end result being the lowest cost of borrowing and best wealth strategy being the result. Remember- check your statements. Even with confirmation a task has been complete, we are not the ones physically processing the payments and technology is not perfect. The borrower is ultimately responsible to ensure there strategies are carried out!

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.

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. 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 callateam@countoncalla.ca or 604-939-8777.

Deputy Prime Minister Chrystia Freeland has taken on a major new role: finance minister.

In a physically distant ceremony at Rideau Hall on Tuesday, Freeland removed her face mask briefly to take the oath of office and become the country’s new minister of finance before replacing the mask to bump elbows with both Prime Minister Justin Trudeau and Gov. General Julie Payette, also masked.

Veteran Liberal Dominic LeBlanc was also sworn in to take over the intergovernmental affairs portfolio.

The mini-cabinet shuffle follows the resignation Monday night of Bill Morneau after reports of a rift between him and Trudeau over the best course forward on the economic recovery from the coronavirus pandemic.

​Freeland was asked on Tuesday to share whether she has had disagreements with the prime minister and how they handled those, and to reflect on what it means to be the first woman in the role.

“It’s actually something we talked about yesterday and we reflected, I think with good humour, on a few of the issues we have disagreed on. I’m actually not going to catalog those,” she said.

“My motto has been to have open, candid conversations with the prime minister in private but also to have a united front when we come out in public … that’s a really, really important part of any working relationship.”

On being the first female finance minister, Freeland said: “It’s about time that we broke that glass ceiling.”

“This particular economic challenge our country is facing, the economic challenge created by the coronavirus is hitting women particularly hard. It’s hitting mothers particularly hard,” she continued.

“Certainly I’m glad that I’ll have an opportunity as a woman, as a mother, to address this really important challenge our country is facing.”

Morneau had been under fire over his role in the WE Charity scandal, particularly his failure to recuse himself from cabinet discussions on the group given his family financial ties.

READ MORE and watch the Global News clip HERE

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.

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. 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 callateam@countoncalla.ca or 604-939-8777.