We hope you are staying healthy and safe during these changing times.  This morning the Bank of Canada reduced it’s prime rate by .50 basis points.

Here is the full report and the need-to-know facts:  Bank of Canada

Next week we will learn what will be passed along to consumers – banks are all working together on liquidity and several other factors so this will be a wait and see scenario.  If you have a variable rate mortgage enjoy the discount.  Now is NOT the time to lock in.  It could be awhile until you see the benefit of that as each lender has different policies, rest assured any discount that is applicable with your mortgage you will receive.

We often get asked, with all these cuts, should I break my fixed rate mortgage and go variable? Now is not that snapshot in time and here’s why.  Lenders have eliminated their discounts off prime and the fixed rates today are better based on the math at this time.  Only if you have a mortgage over 3.5 percent, want to access equity to pay out higher interest rate loans or if you are still working, you can access equity to put aside an emergency fund.

The Bank of Canada does not impact fixed rates, fixed rates are rising due to liquidity with reduced deposits on hand and adapting to deferrals.

If you have a renewal coming up or need to make a purchase – get a rate hold in place, then you can watch the market and decide.  Once this is all behind us, many economists are predicting the fixed rates should dip down a bit.  Only time will tell.

Not only do bonds impact fixed rates, but so does liquidity and cost of adapting to the present circumstances.  With deposits lower with business shutting down and over 1 million people applying for EI last week alone, the banks don’t have as much deposits coming in and that’s why we have seen the cuts we have and other easing measures such as bond buy back etc.

Other changes this week include:

Scotiabank coming out to say they will now allow deferral on up to 4 properties regardless of occupancy – Scotiabank customers must contact Scotiabank directly for this Assistance for renters from BC housing for $500.00 (more on this at https://www.facebook.com/angelacallamortgageteam/).  More to come on this Emergency Relief Fund for EI Insurers have banned together for purchases in the works prior to pandemic that are closing prior to Sept. 2020 (ACMT – Income Temporarily Interrupted).

Please reach out to us with any questions for you or someone you care about. Our response may be delayed, and our answers may change daily, however you can count on us to help anyway we possibly can. We will get through this together.  callateam@dominionlending.ca

Since the banks announced that homeowners struggling in the COVID-19 pandemic could defer mortgage payments for up to six months, more than a million Canadians are reported to have tried to take up the offer.

But with phone lines jammed, and websites unable to process applications that are assessed on a case-by-case basis, many homeowners looking for a deferral or seeking answers have had little success.

Confusion reigns over what makes a homeowner eligible for an emergency deferral, how the program works, whether interest is payable and whether deferring payments will affect credit scores. Unfortunately, with the situation changing on a daily basis, and lenders forced to make up rules as they go, it has been impossible for most people to get any information.

To clear up some of these issues, Glacier Media Real Estate spoke with five mortgage experts who offered their insights and advice on some frequently asked questions.

Read more here:  Western Investor

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 hope everyone is staying safe and keeping peace of mind.  During this time, I am receiving a lot of requests for clarification on how lenders are  we dealing with applications where clients income has unfortunately been interrupted. While most lenders will likely follow this for insured files its important you confirm directly with your mortgage broker.

Below is an update with a little more clarity on income guidelines we received through one of you lender partners MCAP.
The good news is that all 3 insurers have unified and issued a position on the pipeline for deals submitted and approved as of today.
Therefore on those transactions we can be confident to say we are following insurers guidelines for deals up until March 25^th.

INSURED/INSURABLE & UNISURABLE PURCHASE (30yr/$1M+) DEALS – unified strategy from insurers:

In light of the current environment related to COVID-19, we understand that certain borrowers may have had income temporarily interrupted that may be in the midst of the home-buying process. The Mortgage Insurers have collaborated to provide further guidance on the treatment of applications for these situations currently in the pipeline as noted below.

Where a Lender has been advised that a borrower with a previously approved application is experiencing income disruption due to COVID-19 and the borrower still wants to move ahead with the application, the Mortgage Insurer will maintain its previous approval provided all the following conditions are met:

•              The application was approved as of March 25, 2020
•              The borrower has entered into a legal binding purchase and sale agreement and waived financing conditions as of March 25, 2020
•              The closing date is on or before September 30, 2020

In such cases, the Lender will maintain the previously provided income that was originally used to qualify the mortgage insurance application. The Lender must continue to complete appropriate income/employment confirmation (based on the income/employment prior to the interruption) and document their file accordingly.

If the situation does not fall into the criteria above, Lenders should adjudicate the file based on the current income situation.  Exceptions may be considered on a case-by-case basis, the Lender should refer the application to the Mortgage Insurer for further assessment.

If you have any further questions, we are here to help guide and assist you.

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.

Hopefully, you are doing well during these uncertain times.  We hope you have been receiving our ongoing communications we sent last week with the lender’s numbers and up-to-the-moment updates as they become available through our Facebook page.  While response times are delayed, I wanted to take a moment to answer some common questions to help you with clarity as much as we possible can.

What is a mortgage deferral?

A mortgage deferral, if approved, allows you to delay the payments for the time granted, and done on a case by case basis.  These vary greatly and is based solely on the decision from the lender.  We have seen approvals between one and six months, with extended delay times for approval.

What happens during the deferral period?

Although you won’t be obligated to make the principal and interest payment, you will be required to continue to pay for your mortgage insurance (if you have it – critical illness/death) and property tax portions should the lender be collecting on your behalf.

How does it work?

Once the deferment is over your payment will increase to be higher and ON TOP of your regular payments. The amount will be added to each payment remaining on the term. The longer the deferral the higher your payments will be after the deferral period.

Who qualifies?

As of this moment, only those who DO NOT have the ability to work or make payments as a result of COVID-19.  Anyone who is still employed at this time will not qualify.

What about rental property mortgages?

Deferrals in general are not being approved on rentals at this time.  If /when they are, it will come with additional costs for the landlord as noted above once determined.  Landlord BC is working on a rent bank and details are expected later this week.

What about my secured line of credit?

Experience has demonstrated lenders are increasing their spreads based rates on variable rate mortgages for secured lines of credit.  If you have one that is drawn, we will want to look at locking that into either a fixed rate or variable rate mortgage.  If you are still employed, it might be worth refinancing at today’s low rates into one whole new mortgage.

My employment is secure, and I am working throughout this pandemic, what can I do to be proactive and protect myself?

If you don’t presently have six months of living expenses set aside and you are still employed, this would be the time to take out some equity for emergency funds.

My parents/grandparents (over 55) lost money in the stock market and I’m worried about them having the cashflow they need.

A reverse mortgage will allow them to access their equity in a lump sum, or monthly payment or combination of the two.  As a reverse mortgage is not viewed as income. They will still receive any entitled pensions and not have to take further losses in the stock market if that’s how they were drawing their living expenses.  They will not have to traditionally income qualify, they will make no monthly payments and have access to there equity, this is a way better alternative then utilizing high interest rate credit cards to get by.

Please reach out to us with any questions to callateam@dominionlending.ca and while our responses will be delayed and we may not have all the answers, we will always do anything we can to help at our earliest opportunity.

Stay healthy and safe

Angela Calla Mortgage Team

We hope that you’re staying healthy through these changing times.  It’s business as usual here at our office and the lenders have all been communicating with us that their policies are changing rapidly and they are working very hard to reduce wait times.   They are doing everything they can to assist everyone.  The current wait times are 4 hours on the phone on average and 3-5 business days for further approval. They hope to shorten this response time and are working on systems to become more efficient.

We are also placing updates on our Facebook Page:https://www.facebook.com/angelacallamortgageteam/

We were sent the information below that will help you with the process.  Here is what you can expect to be asked and what to have handy to reduce wait times:

1. Were you laid off in an industry directly impacted by COVID-19?

Customers who have had the income directly impacted by COVID-19 and need immediate assistance because they are unable to make their mortgage payments should contact us. These customers will be offered up to 6 months payment relief.

2. Were you laid off in an industry NOT directly impacted by COVID-19 (i.e banks)?

They may request additional information & confirm the lay-off so have that information ready. They are prepared to work on a solution that may include up to 6 months of payment relief.

3. Are you still working but have other factors impacting your ability to make a mortgage payment

Customers who have been financially impacted by COVID-19 but are still able to work, and may still reach out to us if they are in immediate need and at risk of missing a mortgage payments. Solutions are being offered on a case by case basis and may include payment relief.

The lenders want you to know that they are being hit extremely hard right now, not only with deferring payment requests but also with the change in Prime Rate & annual mortgage statement requests.   This is the perfect storm for banks because it was already the most busy season for customer service departments and then the pandemic hit right at the same time.  Please be patient and understand that banks want to help but they only have so much manpower to handle this unique situation.

Lenders have asked to be called or emailed directly with the above information at hand and will get back you at their first opportunity.

If we can help with anything please reach out to us at callateam@dominionlending.ca

Below is a list of numbers and available email addresses

LIST OF LENDERS

Customer Service Numbers below:

ATB 1-800-332-8383

B2B 1-800-263-8349

BMO 1-877-895-3278

Bridgewater 1-866-243-4301

CIBC 1-800-465-2422

CMLS 1-888-995-2657

DLC 1-866-928-6810

cap@paradigmquest.com

Equitable 1-888-334-3313

Connect First 403-736-4000

Chinook Financial 403-934-3358

First Calgary Financial 403-736-4000

First National 1-866-557-5509

accounts@firstnational.ca

Haventree 1-855-272-0051

Home Trust 1-855-270-3630

HSBC 1-888-310-4722

ICICI 1-888-424-2422

Manulife 1-877-765-2265

MCAP 1-800-265-2624

Merix 1-877-637-4911 option 4

customerservice@merixfinancial.com

Marathon 1-855-503-6060

Optimum 1-866-441-3775

RBC 1-800-769-2511

RFA 1-877-416-7873

RMG 1-866-809-5800

Scotia 1-800-472-6842

Servus 1-877-378-8728

Street Capital 1-866-683-8090

TD 1-866-222-3456

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 know some people are going through a life transition, or making investment decisions that involve a property purchase.

Here are a few things to consider to help you make the best decisions for you.

1. Where is your down payment coming from?  If it’s coming from the investment market, or upcoming wages, or gift that’s from investments or a refinance you will want to ensure it’s accessible and your lender has a way to get you the deposit  (a branch open).  With the investment market down for many, people not being able to work and some bank branches not having branches open you will want to have a plan in place.
2. Appraisals & Inspections – you will want to ensure the appraisal will be able to be completed with access as some providers are not entering homes right now.
3. Subject to financing – the lenders are very busy right now with record inquiries on mortgages.  Ensure you have all your documents in order prior to submitting an offer and a minimum of 10-14 business days is recommended once your contract is accepted and sent to your Broker.
4. Lawyers – you will want to ensure your legal representatives are working and have a method to complete the required paperwork.  Best to confirm their availability early in the process as this meeting has to be in person.

Things are changing rapidly, and lenders are adapting and modifying policies to help through these times and as things move forward, your professionals will do all they can within their control to assist you.

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.

With all the updates that keep pouring in, we would like to invite you to see these as they happen by following our Facebook page: https://www.facebook.com/angelacallamortgageteam/

In efforts to keep this short for you as I’m sure you have received lots of emails over this past week on our Facebook page you will find the below helpful resources.

1.  A list of common lenders that you can call if you are having troubles making an upcoming mortgage payment.

2. Alternatively, utilizing that list, you can also call your existing lender and get your balance and penalty amount to take advantage of todays rates and learn without biased from us if its your best interest to make a change.  This will be the information required with a copy of your most recent mortgage statement, a note of combined income and estimated property value to see if its worth an in-depth review.  Please send this information to callateam2@dominionlending.ca.

Through these changing times, rest assured we are here to help you and those you care most about every single step of the way and are working via phone and email.

Kindly note:

-Lenders are experiencing a very high volume of calls and emails.  We anticipate these reduced rates will be the norm for the next while so there is no immediate rush but while you’re likely spending more time at home, now will be a good time to review.

-If a mortgage approval is in the works already with our team, you can have confidence the lowest rate available for your scenario will be provided at closing.

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.

In light of the recent nose dive mortgage rates have taken, it’s a great opportunity to potentially save money, especially in these 4 stages of life.

1. Looking to make a property purchase or renovation
2. Have a mortgage renewal upcoming
3. Have debt outside of your mortgage with interest over 3%
4. Anyone who has a mortgage over 3.09% its time to review

If you or someone you care about want to see if these recent changes can help you please call us at 604-802-3983 or email us at:  callateam@dominionlending.ca

Here is the clip: COVID-19 Concerns Spark Bank of Canada Rate Cut

Exciting news, last week I had the honour as being announced as a official nominee for the YWCA Woman of Distinction Award.

More details here: YWCA WODA

Other links you may find helpful:

Our Facebook page: https://www.facebook.com/angelacallamortgageteam/

Our Mobile App: https://www.dlcapp.ca/app/angela-calla

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.

Canadians are more in debt than ever. The average Canadian owes roughly $1.70 for every dollar of earned income per year after taxes, two in five Canadians don’t think they’ll ever get out of debt, and more than a third of Canadians have no retirement savings, according to a 2019 survey.

But building home equity and consolidating debt into one manageable monthly payment can help consumers climb out of the hole. In partnership with the Angela Calla Mortgage Team, we take a closer look at when breaking a mortgage to get out of debt makes sense.

Read more here:  Global News

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.

Here is our first decrease in the Bank of Canada prime rate for 2020. Here is the full report from today Bank of Canada and the next meeting is April 15th 2020.

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.

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 that will reduce the cost of mortgages and lines of credit.  More to come on this.

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. Economic uncertainty means the cost of borrowing money will remain low.

To optimize the market to your advantage consider this:

1.            If you’re thinking of a home purchase, get a pre-approval in place. You can start with our app and complete the process after review https://www.dlcapp.ca/app/angela-calla

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 avaliable.

Please remember, if you have a mortgage funding with us in coming weeks, we do a full lookback prior to closing to ensure you have the lowest cost of borrowing for your circumstances. 

My team is here to help you navigate this ever changing market. We can help you or a loved one today at 604-802-3983 or callateam@dominionlending.ca.  Follow our facebook page for more news; Facebook – Angela Calla Mortgage Team