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.

August 29, 2019 – The C.D. Howe Institute’s Monetary Policy Council (MPC) has recommended that the Bank of Canada keep its target for the overnight rate, its benchmark policy interest rate, at 1.75 percent at its next announcement on September 4, 2019, before lowering it to 1.25 percent by March 2020.

The MPC provides an independent assessment of the monetary stance consistent with the Bank of Canada’s 2 percent inflation target. William Robson, the Institute’s President and CEO, chairs the Council. Council members make recommendations for the Bank of Canada’s upcoming interest-rate announcement, the subsequent announcement, and the announcements six months and one year ahead. The Council’s formal recommendation for each announcement is the median vote of the members attending the meeting.

Eight of the nine members attending this meeting called for the Bank to maintain the overnight rate target at 1.75 percent next week, while one called for a cut to 1.50 percent. By the next announcement in October, five of the members supported maintaining the target at 1.75 percent, three called for a cut to 1.50 percent, and one called for a cut to 1.25 percent. Looking ahead to March 2020, the centre of gravity of the recommendations shifted decisively down: one member called for maintaining the target at 1.75 percent, three called for 1.50 percent, and five called for 1.25 percent. By September 2020, one member called for a target of 1.75 percent, three for 1.50 percent, four for 1.25 percent, and one for 1.00 percent (see table).

The profile of these recommendations – no cut in the overnight rate in the near term, but 50 basis points lower after six months – reflected the contrast between the MPC’s sanguine assessment of the Canadian economy and its worries about problems abroad. The group generally judged that economic activity in Canada is expanding at about the same pace as productive capacity is growing, and that the Bank’s current stance is appropriate for maintaining inflation at 2 percent. Looking outside Canada, however, most members thought that the downside risks were numerous and important enough to warrant at least one cut in the overnight rate target over the next 12 months.

Among the domestic indicators MPC members cited as supporting an unchanged policy stance were employment growth and rising wages, a better balance among consumption, housing, business investment and net exports, and a recovery from temporary factors slowing growth late in 2018 and in the first quarter of 2019. On the cautionary side, and reflecting in large part concerns about the outlook abroad, they noted the inversion of the yield curve and financial market expectations of below-target inflation and central bank easing. The MPC’s discussion of risks to the global economy highlighted a deteriorating growth outlook in most major economies, Brexit, and the prospect that trade tensions, particularly between the United States and China, will further damage confidence and activity.

Much of the discussion at this meeting of the MPC turned on the timing of potential cuts to the overnight rate target. Some members argued that cutting earlier would leave the Canadian economy in better shape should some of the downside risks materialize; others argued for conserving a cut until that happened. Potential actions by the US Federal Reserve and other central banks were material considerations for many members, who argued that easing abroad would put undesirable upward pressure on the Canadian dollar if the Bank of Canada did not ease also. The prospect of policy-rate cuts abroad was significant in the MPC’s call for a lower overnight rate by early 2020.

Votes of MPC members and the Council median for each announcement, percent

The views and opinions expressed by the participants are their own and do not necessarily reflect the views of the organizations with which they are affiliated, or those of the C.D. Howe Institute.

The MPC’s next vote will take place on October 24, 2019 prior to the Bank of Canada’s interest rate announcement on October 30, 2019.

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

Council Report

The First-Time Home Buyer Incentive helps qualified first-time homebuyers reduce their monthly mortgage carrying costs without adding to their financial burdens.

Read more details here: First Time Home Buyers Incentive

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

Homes sales across Canada rose for the fifth consecutive month and recorded a double-digit increase compared to a year ago in part aided by interest rates, according to the Canadian Real Estate Association.

However, sales in Vancouver and Toronto, the two largest domestic markets, remained “well below” the levels achieved before mortgage stress tests were introduced last year, the association said.

Sales rose by 3.5 per cent in July compared with June and by 12.6 per cent versus the same month in 2018, the association’s figures show.

The Bank of Canada kept interest rates at 1.75 per cent last month after raising them five times from 2017 to last Oct.

“The extent to which recent declines in mortgage interest rates have helped lift sales activity varies by community and price segment,” CREA President Jason Stephen said in a statement. “All real estate is local.”

The number of new listings was almost flat, easing by 0.4 per cent in July as increases in Calgary, Toronto and Edmonton offset a decline in B.C. and Montreal, CREA said.

House prices were similar with gains of 0.6 per cent month on month and 0.2 per cent from a year ago.

“Sales continue to rise in housing markets where the mortgage stress test had little impact due to upbeat local economic conditions and a supply of affordably priced homes,” CREA Chief Economist Gregory Klump said in the statement.

“Meanwhile, the mortgage stress test is doing no favours for homebuyers and sellers alike in places facing challenging local economic prospects and subdued consumer sentiment.”

Financial Post

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

About twice a year, one of the big Canadian banks likes to run an advertising campaign for their cash back mortgages. These are mortgages usually with 5 year terms where you receive a certain percentage back in cash. The percentage varies from 1% to 5% in most cases. You can use these funds to build a fence, landscape, buy window coverings etc. The idea is to be able to pay for some things that you would not be able to as you put all your money into the down payment and closing costs and need some help to get started.

1- There are multiple lenders who have cash back mortgages. Don’t jump at the first one you see. They all have different terms and conditions.
2. You are really getting a loan on top of your mortgage. The interest rate is calculated so that by the end of the term you will have paid the lender back the money they gave you and a little bit extra. Sometimes this little bit extra may be twice as much as you got in cash back.
3 – The average cash back mortgage is a 5 year term. Most Canadians move every 30 months. Therefore when you break a cash back mortgage you have to pay a penalty as per usual but you also have to pay back a portion of the loan that they gave you. If you are 36 months into a 60 month mortgage, you have to pay them back 2 years’ worth or 40% of the cash back. Combined with the penalty this can be a hefty sum. In addition, there are some lenders who require you to pay back 100% of the cash back if you want to break the term.

Before signing for a cash back mortgage it’s better to discuss your needs with The Angela Calla Mortgage Team.  We can advise you on cash backs, line of credit, Purchase plus Improvements or Flex Down mortgages which may be better for your situation.

– David Cooke

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