Could the minimum down payment in Canada soon be increased to 10%? It’s possible.

In his address to the House of Commons Standing Committee yesterday, the head of CMHC, Evan Siddall, stated: “Unless we act, a first time homebuyer purchasing a $300,000 home with a 5 percent down payment stands to lose over $45,000 on their $15,000 investment if prices fall by 10 percent… In comparison, a 10 percent down payment offers more of a cushion against possible losses.”

Other key highlights from Siddall’s address:

• CMHC is now forecasting a decline in average house prices of 9-18% in the coming 12 months
• CMHC estimates that 12% of mortgage holders have elected to defer payments so far, and that figure could reach nearly 20 percent by September.
• Canada’s household debt-to-GDP ratio will increase to more than 115 percent in the second quarter of 2020, and reach 130 percent by September, due to increased borrowing and GDP declines. Pre-crisis debt-to-GDP was 99 percent
• Looking at debt multiples of disposable income, CMHC estimates this measure will climb from 176 percent in late 2019 to well over 200 percent through 2021

Predictions, indeed that will impact those purchasing 500k or below. The future remains to be seen, and the other insurers have yet to comment.

We will always be here to help you and those you care about most about navigate the now.

Learn more here.

Angela Calla is a 16-year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

I did a segment with Global News BC to help educate Canadians on Reverse Mortgages as an option.

This could be a great wealth-building tool for those over the age of 55 who are:

• Looking to purchase additional property without selling their home
• Wanting the freedom of no mortgage payments
• Desire a home renovation without accumulating payments or pulling out investments
• Looking to consolidate outside and/or high-interest credit card debt
• Gift inheritance with a warm hand
• Worried about having enough investment income to properly fund retirement
• Protecting their government benefits and using their capital tax-free
• Or want to go through a divorce without selling their home or having payments

The Reverse Mortgage goes up to approx. 50% of your properties value and there is no stress test to qualify. If you know someone over 55 that would like to review their options watch this segment and share it with someone you care about who may be struggling during these challenging times or who wants to make sure they’re protecting their investments.

Click here to watch the Global News segment on Reverse Mortgages.

Here’s a link to an article I wrote on Reverse Mortgages.

The Reverse Mortgage isn’t for everyone, but whatever stage of life you’re in we have a mortgage for you. It’s all part of your journey and we’re always here to help.

Angela Calla is a 16-year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

The Real Costs. The Facts. The Myths.

There are opinions and articles circulating that say taking the 6 month mortgage deferral option could result in your payments increasing by $800 a month at the end of the deferral period. This is just not so. You’ve probably also heard that lenders will charge interest on top of interest and that this is going to cost you a fortune. Well it’s not going to cost you a fortune. Let’s do the real math here.

Let’s take a $400,000 mortgage at a 3.0% interest rate on a 5 year fixed term that originally had a 25 year amortization, meaning the life of the mortgage is 25 years. The monthly payment is about $1,900. Now let’s say the borrowers are two and a half years into their five year term and decide to take the 6 month deferral option. They will save $11,400 in cash flow over this 6 month deferral period by not paying principal and interest. Now it’s true that the lender will likely charge interest each month on the interest that was never paid. In technical terms, this is called monthly compounding.

At the end of the 6 month deferral period, the mortgage balance is now higher than it would have been by the principal that was never paid down and the additional interest costs. The additional interest costs amount to approximately $75 over the 6 month deferral period in this case. But the mortgage amount is now higher and there are 2 years left in the mortgage term and 22 years remaining in the life of the mortgage. Since the new payments of $1,960 per month are recalculated based on the remaining life of the mortgage, the additional interest cost over the next 2 years in the term is another $650, and the borrowers will also pay another $3,525 in interest over the final 20 years remaining in the life of the mortgage. The grand total in extra interest costs is about $4,250 over the next 22 years for the benefit of deferring $11,400 for 6 months, and the payments only went up by $60 per month.

How about another example looking at an $800,000 mortgage with a 3.0% interest rate on a 2 year fixed term and a remaining life of 15 years? This is a more aggressive mortgage situation. The monthly payment starts at $5,525 and the borrowers decide to take the 6 month deferral option with 1 year left in the term, saving $33,150 in cash flow over the deferral period. After the deferral period the new monthly payment goes up by $250 per month, not $800 per month, and the total additional interest cost for taking the deferral option is $7,450 spread over more than 13 years.

Different lenders have different methods for their deferral program, but this is generally what we are seeing from many lenders. Some lenders are keeping the same monthly payment amount until the end of the mortgage term, which means the interest cost will be slightly higher because the principal is not being paid down as fast, and the payment will go higher at renewal.

The deferral programs are meant to address those facing financial hardship and difficulties making payments, and each lender has its own policies on how much evidence they require to prove this. For those that are in this situation, there are certainly additional costs with taking the deferral option, as there should be. But they are certainly not as high as some of the perceptions and expectations out there that I’ve come across, which seem to be fear driving fiction rather than balancing the facts. There is a significant benefit of being able to save on cash flow during this difficult time period ahead and lenders have offered this program because they know it can help their clients. So from a purely mathematical point of view, if you can make your mortgage payments, make them and avoid the additional interest costs, but if you qualify for the deferral and need it, don’t fear it, it’s not as costly as some of the rumours and misguided advice out there. And you can always use your prepayment feature to bring the principal amount back down again once you have the funds to do so.

Angela Calla is a 16-year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

Nearly two months into living in some form of isolation, watching retirement savings take a hit, and having to take additional health precautions due to the COVID-19 pandemic, eligible seniors are set to receive a one-time tax-free payment of up to $500.

“There’s no question that COVID-19 has been taking its toll on seniors both emotionally and financially… our government is taking action to alleviate some of the stress they may be feeling,” said Prime Minister Justin Trudeau, adding that there’s still work ahead to find long-term solutions to how Canada’s elderly are cared for.

Who is eligible for the Canadian government’s new COVID-19 aid for seniors?

Any senior who is eligible for the Old Age Security (OAS) pension will receive a $300 payment, and an additional $200 is being sent to seniors eligible for the Guaranteed Income Supplement (GIS). No application is required to receive this one-time payment.

Seniors are a demographic that continues to be hardest hit from a health standpoint by COVID-19, with deadly outbreaks in long-term care homes across the country. Others are facing additional economic challenges as many live on a fixed income and have expressed concerns about their ability to make ends meet during this time.

If you, or someone you know, have investments that have suffered during this pandemic the Reverse Mortgage which allows you to access your equity without penalty might be the solution you’re looking for. Contact us at callateam@dominionlending.ca for more info.

Learn more about the seniors’ aid here.

Angela Calla is a 16-year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

If you have questions about mortgages or financing in today’s current environment this is an excellent resource for you.

We are very pleased to have been selected by Canadian Mortgage Podcast as one of the top mortgage professionals in the country.

During the episode we cover some very important information for Canadians.

We discuss what is required today to get a new mortgage.  We also cover important information for Canadians looking to refinance.

There are also some insights on the current environment and how you can approach your personal finance right now.

If you have any direct questions or know anyone looking to buy, sell or refinance please feel free to reach out directly by emailing us at callateam@dominionlending.ca.

Listen to it here

Angela Calla is a 16-year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

We had the privilege of donating some coffee tumblers to our health workers on the front lines at the Eagle Ridge Hospital. What a wonderful group of people! We’re so happy we could help!

Angela Calla is a 16-year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

The next phase of British Columbia’s COVID-19 response will allow residents to host a small group of friends for dinner, get a professional haircut, and play low-contact sports.

The plans unveiled by B.C. Premier John Horgan on Wednesday make it possible for a wide variety of businesses and services to reopen as early as mid-May, including pubs and restaurants, retail stores, salons and barbershops, libraries, museums and art galleries.

Crucially, they also promise to bring back elective surgeries, and let dentists, physiotherapists, registered massage therapists, speech therapists and others in the health services sector return to work.

LEARN MORE

Angela Calla is a 16-year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

Canadian banks are expected to tighten access to home equity lines of credit (HELOCs) when coronavirus-linked government assistance programs end in a few months, as lenders seek to limit credit to already-stretched borrowers, industry watchers said.

Such lines of credit — which allow homeowners to borrow back equity in their properties — have seen limited drawdowns since the coronavirus outbreak sparked an economic collapse, with many struggling borrowers using the federal government’s stimulus measures and banks’ loan payment deferrals to get by.

We saw similar changes to HELOCs back in 2008. Now’s the time to review yours if you haven’t already.

Please note lenders reserve the right to change their terms at any given time.

READ MORE

Angela Calla is a 16-year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

How You Can Access Online all your Interactions with your CRA and Service Canada Accounts Online, Anytime!

My Service Canada Account (MSCA) is a secure online portal that lets you apply, view and update your information for:

• Employment Insurance (EI)
• Canada Pension Plan (CPP)
• Old Age Security (OAS).
• And now also any of the many COVID-19 benefit programs for Canadians.

If you do not already have one, start by creating your Service Canada ‘My Service Canada Account’ here .

Within your ‘My Service Canada Account’ you should first setup or to confirm that your direct deposit account information is correct to facilitate the receipt to your bank account of any Government of Canada benefits, from CPP to OAS and EI and any of the many COVID-19 benefit programs.

To do this, login and go to ‘Service Canada account services’ and in the View/Change tab click on Canada Pension Plan (CPP) / Old Age Security (OAS) link and then click on ‘Payment information’ and then click on ‘2020’ and it will then display the payments you have received for both pensions by date.

Connecting your ‘My Service Canada Account’ with your CRA ‘My Account for Individuals’

From your My Service Canada Account, you can also securely access your income tax and other benefit information by clicking on the Canada Revenue Agency “My Account” button. This will connect you to your Canada Revenue Agency account without having to login or revalidate your identity. And if you have not yet registered for your online CRA ‘My Account for Individuals’ you can do this here Registration process to access the CRA login services

Learn how you can also sign in to your My Service Canada Account from your bank account login

My Service Canada Account: Register with your bank

Link between My Account and My Service Canada Account

The link provides you with a convenient connection between the Canada Revenue Agency’s (CRA) My Account for Individuals and Employment and Social Development Canada’s (ESDC) My Service Canada Account.

If you are registered for CRA’s ‘My Account for Individuals’ you can securely access ESDC’s My Service Canada Account without having to login or revalidate your identity. The link will take you directly to your My Service Canada Account within a single secure session, without having to sign in or register with MSCA.

Using the “Tell Us Once” feature you can now update and share your direct deposit banking information with both CRA and ESDC in one easy step.

Individuals receiving a Canada Pension Plan (CPP) benefit, will be able to update their banking information with one department and can choose to share it with the other. Canadians can choose to share direct deposit information through multiple service channels including:

How to get your CRA ‘statement of account’

Your Statement of Account is what you will need when applying for a mortgage in order to prove you have paid any money showing on your NOA as owing to CRA.

Login to your CRA ‘My Account’ and you will land on the ‘Overview’ page.  In the Accounts and section of that page click on ‘View statement of account’ and then print that page or save it as a pdf file.

Angela Calla is a 16-year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.