If you’re credit challenged but want to get into the housing market, it can be a tough road to hoe. But improving your credit to a point where a lender will give you chance, is very doable.

First, I won’t bore you with the detailed minutia of credit scores. Basically, what you need to know is a score above 680 puts you in a good position to get financing, while below will make it tough and improvement is needed.

Your credit score tells lenders some basic stuff about your credit: How long you’ve had credit, your ability to pay back that credit and how much you owe. And so your credit score is affected by how much debt you’re carrying in regards to limit, how many cards or tradelines you have and your history of repayment.

If you’re a young person and new to the world of credit, consider the 2-2-2 rule to help build up your credit. Lenders want to see two forms of revolving credit, like credit cards, with limits no less than $2,000 and a clean history of payment for two years. It’s also good to note, a great credit score will also include keeping a balance on all those cards at any given time below 30 per cent of the limit.

To ensure your score stays in playoff form, make sure to pay off any collections, like parking tickets, and correct any old or incorrect reporting on your  credit score by contacting Equifax to have it removed. Some people also forget their credit cards have an annual fee and fail to pay them off too.

This cannot be stressed enough, if you want to keep or attain a good credit score, you have to pay your credit cards or tradelines on time regardless of whether you owe $1 or $1 million.

There is a tendency when things get really bad to consider declaring bankruptcy or a consumer proposal. A consumer proposal is a formal, legally binding process to pay creditors a percentage of what is owed to them.

You really want to avoid these two options. Instead, there are companies out there that will perform the same function and negotiate your debts, but it won’t impact your credit or carry the stigma of bankruptcy or a consumer proposal.

Lastly, if you already own a home and have some equity, but you’re still drowning in credit debt, consider refinancing your mortgage. Sure, you might not get the great rate you have now or you might get dinged for breaking your mortgage early, but using the equity in your home to get rid of high interest credit payments could keep more money in your pocket at the end of the day.

Angela Calla is a 15 year award-winning woman of influence and 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 her book sales are donated to local charities helping families in the tri-city community.  Angela can be reached at   callateam@dominionlending.ca or 604-802-3983.

If you’re in a mortgage that’s coming up for renewal in the coming months and you’re considering just staying with your current lender, you wouldn’t be alone.

According to the Canadian Mortgage and Housing Corporation’s (CMHC) Residential Mortgage Industry Report released in the summer, in 2018, the number of mortgage renewals with the same lender increased by 16 per cent over the previous year.

The report suggested one of the factors that may have contributed to large increases in loan renewals with the same institution are the tighter approval criteria. In other words, people are worried they may not qualify for a new mortgage if they switch lenders, so they’re staying put.

You’ll remember in the fall of 2017, OSFI, (the Office of Superintendent of Financial Institutions) the agency that regulates the financial industry, announced tighter rules on mortgages. The biggest change related to uninsured mortgages, or homebuyers with 20 per cent or more for a down payment. These people are now required to go through a “stress test” or qualify using a minimum qualifying rate.

The changes came a year after a similar stress test was introduced for insured mortgages.

If the tighter mortgage rules still have you stressed as you face a mortgage renewal, the CMHC report noted the approval rate for same lender renewals remained stable at 99 per cent. Renewals are not specifically subject to the new stress test and are more likely to meet current lender criteria, the reported noted.

So, does that mean you should just automatically renew your mortgage with the same lender when your term is up? Not necessarily. You need to reach out to a mortgage professional to get the best advice.

For starters, most lenders, especially the big banks, will send you a renewal letter when there’s about three months left on the term. Sometimes that letter could come with six months left. Typically, the lender will offer you a rate at that time and all you’ll have to do is sign at the bottom line to roll over your mortgage.

But beware, lenders often offer a higher rate than a new client because they’re hoping the ease of renewal will keep you from seeking out a new lender and lower rate.

In some cases, it may be best to just sign and roll over your mortgage. There are a few things to consider. If you decide to change lenders, you’ll basically have to go through an approval process again. That entails getting all your documents, lawyer’s fees and appraisals.

You’ll have to ask yourself, is it worth the effort to save a few basis points off your rate, or a few hundred dollars over a term to make the switch?

For some it won’t be. But, if a switch can lead to saving thousands of dollars, it would certainly be something to consider. While everyone’s situation is different, the larger the mortgage, the bigger the savings will be if you can find a lower rate.

Often, homeowners will just use a bank their parents recommend for their first mortgage. But they might find themselves not happy with the service or terms of the mortgage and may just want to switch to a different lender as the mortgage comes up for renewal.

If that’s a situation you find yourself in, you have options, and a mortgage broker can help you make the best decision.

-Dominion Lending Centres-

Angela Calla is a 15 year award-winning woman of influence and 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 her book sales are donated to local charities helping families in the tri-city community.  Angela can be reached at  callateam@dominionlending.ca or 604-802-3983.

I have really enjoyed seeing homebuyers getting into the market over the last year. You never know the bottom until you are seeing it in the rear view mirror.  It looks like we are in recovery mode. Certainly a market cycle I have seen before and predicted at end of summer for Global News.

https://www.westerninvestor.com/news/british-columbia/bottomed-out-metro-vancouver-home-sales-leap-46-3-per-cent-1.23964418?utm_source=Western+Investor+Newsletter&utm_campaign=07e0a8cd95-EMAIL_CAMPAIGN_2018_01_03_COPY_01&utm_medium=email&utm_term=0_9b89d35e1e-07e0a8cd95-96588301

If you or someone you care about is looking to make a purchase, reach out to us directly to assist you.

Angela Calla is a 15 year award-winning woman of influence and 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 her book sales are donated to local charities helping families in the tri-city community.  Angela can be reached at  callateam@dominionlending.ca or 604-802-3983.

Here are some of the speaking points that Angela touched on during her interview on the Charles Adler Show, played nationally, yesterday:

• The current foreclosure rate is less than .025% and CMHC pays millions of dollars in dividends to the government each and every year.  They have enough money to pay out every single mortgage they have ever insured plus some so this was not as a result of an existing or foreseeable problem or threat of defaults on consumer mortgages.
• The liberals created the stress test but we are unsure why?  There was zero consultation with industry.
• We have spent the last 2 years trying to get them to amend the policies so that middle class Canadians do not have to continue suffering as a result of the unintended consequences that clearly were not foreseen.
• The conservatives took formal consultation with us and actually adapted all the policies that we suggested to help middle class Canadians keep their money and empower them instead of paying more for no reason.  As a Mortgage Broker, we are passionate about educating Canadians and empowering them.
• We believe that there is no one better to decide where their money should go then the actual consumers themselves.  When we handcuff them to lenders by not doing proper consultation with industry, we take away their power of choice and we give the power to the big corporations to take money from people which is very belittling.  We are very proud to see this come forward.  The other parties have mentioned some modifications but certainly nothing to the degree that will help as much as this plan has been laid out.

For further information, the link below provides the interview on the Charles Adler Show played on the radio, Nationally.

https://omny.fm/shows/charles-adler-tonight/andrew-scheer-announces-stress-test-for-first-time

Angela Calla is a 15 year award-winning woman of influence and 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 her book sales are donated to local charities helping families in the tri-city community.  Angela can be reached at   callateam@dominionlending.ca or 604-802-3983

 https://globalnews.ca/news/5939018/andrew-scheer-mortgages-housing/

When the federal government under the Liberals made all the changes to the mortgage rules, they did it with ZERO consultation from the industry. Our industry immediately detected, the gaps and collateral damage it was going to do to Canadians by making it harder for them to buy a home.  The Conservative Party actually reached out to our industry for input to learn how to use financial prudence while still giving Canadians the power of choice.

We are not endorsing a political party; my comments are solely based on this industry-specific party platform announcement.

1.  First time homebuyers will benefit significantly from a 30-year mortgage

This won’t help them qualify for more so we still have prudence with the stress test (which is well over 2% higher than what they actually pay), however, Canadians cash flow will greatly improve to help them with the continued increase in the cost of living and help them avoid outside debt by having cash aside for an emergency. The 30 year mortgage is a great planning tool, which gives Canadians the power to better financially position themselves. It’s important to note that people who purchase with a 20 percent down payment already have access to a 30 year mortgage. On a 350k mortgage, this will give Canadians approx. $185/ month in additional cash they can save for an emergency so they don’t have to turn to high interest credit cards, spend on groceries, family essentials, or which will allow them to consider future- income producing investments while still maintaining a home!

It’s also important to note that “when” the Conservative government had a 40 year mortgage option in place, interest rates were more than double what they are now. Today, interest rates are less than half of what they were at that time even including the stress test, so it only made sense for them to reduce the length of mortgage terms as rates went down.

2. No stress test on renewals

THIS was the collateral damage that impacted anyone going through a renewal or porting a mortgage in the last few years. Canadians that got a mortgage under the previous conditions were forced to pay more interest with different lenders or their own, as they didn’t qualify for the mortgage they had. Some Canadians had to pay up to 2 percent higher at renewal with an alternative lender or in some cases, their existing lender was able to take advantage of the fact that they weren’t able to qualify under new rules. For example, on a 350k mortgage, the stress test increased some mortgages holders’ monthly obligations by $396 a month, with no benefit to them. They were just a part of the damage not considered when the government made changes without consultation! This was something that should have been in place or considered or modified. We are happy to see this being brought to the attention by the Conservative’s plan.

As mortgage professionals, we are passionate about transparency and empowering Canadians through education. While there is no one party we agree with in terms of all of their policies, I feel if this were to be implemented by any party, the advantage to Canadians would be more empowering and certainly based on the numbers and examples above, puts more money in your pockets to utilize as you see fit.

The other parties have discussed raising the first-time homebuyers’ limit, and there is still a good month left in the campaign, so we will see how things continue to develop.

The Angela Calla Mortgage Team is always here to help with clarity on any mortgage content.

Angela Calla is a 15 year award-winning woman of influence and 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 her book sales are donated to local charities helping families in the Tri-cities community.  Angela can be reached at  callateam@dominionlending.ca or 604-802-3983.

6 Things all Co-signors should consider

Co-signing on a loan may seem like an easy way to help a loved one (child, family member, friend, etc.) live out their dream of owning a home. In today’s market conditions, a co-signor can offer a solution to overcome the high market prices and stress testing measure. For example, if you have a damaged credit score, not enough income, or another reason that a lender will not approve the mortgage loan, a co-signor addition on the loan can satisfy the lenders needs and lessen the risk associated with the loan. However, as a co-signor there are considerations.

1. If you act as a co-signor or guarantor, you are entrusting your entire credit history to the borrowers. What this mean is that late payments on the loan will not only hurt them, but it will also impact you.
2. Understand your current situations—taxes, legal, and estate. Co-signing is a large obligation that could harm you financially if the primary borrowers cannot pay.
3. Try to understand, upfront, how many years the co-borrower agreement will be in place and know if you can make changes to things mid-term if the borrower becomes able to assume the original mortgage on their own.
4. Consider the implications this will have regarding your personal income taxes. You may have   an obligation to pay capital gains taxes and we would highly recommend talking to an  accountant prior to signing off.
5. Co-signors should seek independent legal advice to ensure they fully understand their rights, obligations and the implications. A lawyer can lay it out clearly for you as well as help to point out any things you should take note of.
6. Carefully think about the character and stability of the people that you are being asked to co-sign for. Do you trust them? Are you aware of their financial situation to some degree? Are you willing to put yourself at risk potentially to take on this responsibility? Another consideration is to think about your finances down the road and determine how much flexibility will be needed for yourself and your family too! If you have plans of your own that will require a loan, refinancing your home, etc. being a co-signor can have an impact.

Co-signing for a loan is a large responsibility but when it is set-up correctly and all options are considered, it can be an excellent way to help a family member, child, or friend reach their dream of homeownership. If you are considering being a co-signor or wondering if you will require a co-signor on your mortgage, reach out to a mortgage professional. They are always happy to answer any questions and guide you through processes like this.

Angela Calla is a 15 year award-winning woman of influence and 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 help build a new emergency room at Eagle Ridge Hospital. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

Mortgage brokers can help you get financing for every stage of your life

Buying a home can feel like a journey. Whether it’s your first place or 10th, there are so many steps to go through and things you need to know. While you could try to secure financing on your own, at some point you’re going to need the help of a professional. And that’s where a Dominion Lending Centres mortgage broker can help. They are your tightest companion on the road to home ownership.

The trend towards using mortgage brokers/agents to arrange mortgage financing is continually increasing. Why has this shift occurred? Well, very simply put, TOP-NOTCH SERVICE and UNBIASED ADVICE!

The banks are cutting back on staff and are centralizing operations to save money. This doesn’t bode well for the consumer. Unlike individual banking representatives, who often move from one branch to another hoping to advance in the corporations, your mortgage advisors work to form lifelong relationships with their clients.

Today, many banks are buying out smaller trust companies to expand their portfolios. Most major banks lend out money through these trust arms at reduced rates. If you just stick with your bank, you lose access to hundreds of other financing arms – including offerings from multiple banks, credit unions and trust companies that may have better rates, products and terms to offer you.

Mortgage brokers get paid by the lenders so their service is offered to you without charge. What else can you ask for? Better rates, personalized service, flexibility and products at no cost to you. Some will say that the fee is built into the payment, but this is not so.

It costs the banks approximately 40 per cent less to generate a mortgage through a broker than a branch, as there is no overhead to pay if the bank doesn’t get a client’s business. Instead, the mortgage broker bears the entire cost of day-to-day business activity.

Angela Calla is a 15 year award-winning woman of influence and 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 help build a new emergency room at Eagle Ridge Hospital. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

Mortgage expert and author Angela Calla opens new Tri-Cities office

Port Coquitlam, B.C. – Tri-Cities residents seeking mortgage options have a new place to start their search. Mortgage expert and best-selling author Angela Calla has opened a brand new office in the heart of Port Coquitlam.

The new location at 1465 Salisbury Ave Unit 130, will house the Angela Calla Team and a full service office for residents in need of a mortgage or financially-related services such as:

* Home & Investment property purchases | Mortgage renewals

* Debt consolidation | Home renovation loans | Spousal buyouts

* Mortgage review to look for opportunities to save money

“My team is really excited to open our very own office in the Tri-Cities,” Calla said. I’ve devoted my career to helping Canadians achieve financial independence with the right mortgage solution. I live, work and continue to invest in this community I call home, and I can’t wait to use our new office to continue to further empower consumers and provide as much information to help guide them through the mortgage process and look for opportunities to save them money.”

The community is invited to a grand opening on Thursday, Sept. 26 from 2-4 p.m. and special ribbon cutting ceremony at 3 p.m.  Light refreshments will be served.  Angela Calla is excited to thank the community for their support over the years. 

For more information about Angela Calla visit http://www.angelacalla.ca

 About Angela Calla: Over the last 15 years, Angela, as a licensed mortgage broker with Dominion Lending Centres and industry award winner, has been ranked nationally as one of the most influential women in the mortgage industry due to her dedication to helping her clients find the best mortgage to suit their financial goals.  She is an expert media guest for television, radio and print, including hosting the Mortgage Show in Vancouver on CKNW AM980 – now in its 11th season where she continues to educate, elevate and empower the public. More recently, Angela became a best-selling author with her book The Mortgage Code (Click here to purchase), which has helped bring clarity to Canadians seeking a mortgage. She considers her greatest achievements to be helping everyday people get the best available option when seeking a mortgage and proactively looking for opportunities to save them money. Away from the office, Angela continues to give back to her community through her donations to a number of Tri-Cities charities and organizations.  Angela and her husband are proud parents of two young children.

 Media Enquiries:  Please contact Angela Calla at acalla@dominionlending.ca

RSVP:  Please contact Gordana Plemic at callacom@dominionlending.ca

4 WAYS TO MAKE THE MORTGAGE PROCESS SMOOTHER

Mortgages are complicated—we get it! But there are steps that you as a homebuyer can take to make the process a much smoother one (plus let you walk away with the sharpest rate!)

1. Use a Broker
This should be the first step you take when getting a mortgage! Enlisting a trusted broker to work with you can help you secure the sharpest rate and the right mortgage product too! This is one of the biggest (if not the biggest) purchase you will make in your lifetime. Working with a professional will make all the difference.

2. Budget, Budget, and Budget Some More
Budgets aren’t the most glamorous element of homebuying but they are a necessity. Why? Because often you will have overlooked costs that can make or break you getting into your home. A few things to consider:
• Property transfer taxes
• Legal fees
• Home inspection/appraisal fees
• Down payment (this is kind of a big one)
• Mortgage insurance
And the costs don’t stop once you own the home.

3. Understand the Importance of the Down-Payment
Many home-buyers focus on just simply putting money aside for the down payment. While this is crucial, there are other considerations.
• How big of a down payment can you make? You must meet the federally mandated minimum down payment: 5% for all mortgages up to $500,000, and 10% on any portion above $500,000 up to $999,999.99 (CMHC-insured mortgage loans are only available on properties valued under $1 million). But the size of the down payment will also reduce the interest you pay out over the life of your mortgage and reduce the size of the CMHC mortgage premium too.
• Take advantage of the Home Buyer’s Plan to withdraw up to $25,000 tax free from their Registered Retirement Savings Plan (RRSP). This can help to supplement your down payment as long as you understand the rules for paying it back.
• Leave plenty of time to transfer the funds from whichever source you are pulling them from. You will also need to leave adequate time for a certified or cashier’s cheque to be produced before the closing

4. Don’t Become Hyper Focused On the Rate
Yes, the rate is important, but don’t be hasty and jump into a mortgage purely based on the rate. Consider other areas such as the terms, the penalty to break, the amortization, and all other factors before signing on the dotted line. Your broker can help you to understand the ins and outs of a mortgage.

Considering these four things can help you be more prepared when beginning the mortgage process. Remember, a Dominion Lending Centres mortgage broker will help you and guide you through each of these things to ensure you are getting the best mortgage possible and with minimal stress too!

– Geoff Lee

Angela Calla is a 15 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 help build a new emergency room at Eagle Ridge Hospital. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

Bank of Canada Holds Steady…for now!

I hope you have had a fabulous summer. While September will have no decrease in the Bank of Canada prime rate, there is room for variable rates to move down.  Here is the full report from today Bank of Canada release and the next meeting is Oct 30^th 2019.

It is being speculated that we could see up to a 50 basis point decrease in the next 6 months.

What does this mean for consumers?

Since 2016, lenders started breaking the norm in terms of discounts being passed along to consumers as they were keeping larger cuts for themselves to help with the reduced revenue due to the new mortgage rule changes and speculation taxes coming into place. I have written in detail about this in my book The Mortgage Code which helps provide clarity on how lenders operate and how to use it to your benefit. Click here to purchase

I suspect that while the Bank of Canada generally does .25 per cent increases or decreases, we will only see a .15 or point.10 discount once the banks decide what to do with their prime as a result should there be a decrease in upcoming months.

An important metric to keep in mind is that every 5 basis points in mortgage amount per $100,000 is $3 a month in difference

For example, a .25 basis point decrease on a $350,000 mortgage would be $50 a month in reduction. A .15% decrease works out to $30 a month decrease.

While the BOC prime is key in determining bank prime, one thing to keep in mind is fixed rates are at record lows.

With the banks using the bond markets to determine fixed rates and people looking for more financial stability, the demand for bonds goes up. While the prime might be going down, it’s possible we might see an increase in the fixed rate.

To optimize the market to your advantage consider this:

1.            If you’re thinking of a home purchase, get a pre-approval in place, not just a pre-qualification.

2.            If you have a mortgage rate over 3.5%, let’s review to see what the numbers would be with your specific scenario to see if a modification would benefit you to secure a lower rate for a longer period of time. If you are in a variable- let’s review your options for discount vs fixed.

3.            If you have debt outside of your mortgage, let’s review if it’s advantageous to add that into your existing mortgage.

4.            If you have a mortgage renewal coming up, get the rate held and watch the market until three weeks before completion to see what options become available.

My team is here to help you navigate this ever changing market.

Angela Calla is a 15 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 help build a new emergency room at Eagle Ridge Hospital. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.