You’ve decided it’s time to buy a new home. Whether it’s your first home or 25th, you’re now seeking a mortgage. And one of the first steps to getting the financing in place for your dream home is getting pre-approved for that mortgage. But before you start hunting for your new home, you need to understand a few things about the pre-approval process.

We know going through any financing approval process can be stressful. While it will never be stress free, there are some steps you and your mortgage broker can take to make it less of a nail-biter.

You should never assume you’re going to get financing because you make a lot of money, or if you’ve had numerous mortgages over the years.

A good broker will ask for all the necessary documents up front, like your T4s and recent pay stub. The reason why you want to provide your mortgage broker with all the necessary documents in the pre-approval stage is so there won’t be any surprises once your application hits the lender. This will also provide a game plan for what you’ll need to do if there are any speedbumps in the application, while also utilizing your time and the realtor’s and broker’s time so they know what they’re working with and are able to finance. Getting all the documents early also indicates to the broker and realtor you’re serious and makes the pre-approval more firm.

Where most brokers and lenders go wrong is they do a pre-approval but fail to collect documents. All of the sudden, a live offer comes in, but it doesn’t work.

If you get “pre-approved” without a request for documents, it’s basically worthless. It’s also good to note, no lender will give you a firm approval until you get an offer that is accepted.

So, you’ve now found the home you want and have an accepted offer. You’re moving from pre-approval to actual approval of financing but you’re not out of the clear yet. Any final approval is pending the lender confirming the details. Just because you’re pre-approved, doesn’t mean you’ll eventually be approved for any property you want. In some cases, you could have all the right income and credit on your side, but the property is a mess and you get declined. There’s a lot more that goes into to being approved than just income. Items like strata documents and property details are all part of the ingredients in your final approval sauce.

Even with all the documents, you’ll likely be advised by your mortgage broker, they’re only good for 30 days and you could be asked to update them for final approval when the time comes. But unless you’ve lost your job, bought a new expensive boat or run into some type of financial difficulty, updating should be a lot less stressful.

And it’s better to be stressed out about financing at the beginning of the home-buying process, rather then once you’ve got your heart set on a home you might not be approved to buy.

Angela Calla has been a licensed mortgage broker for 14 years. She has been with Dominion Lending Centres since its inception in January 2006. Residing in Port Moody, British Columbia, Angela is a regular expert guest on several news stations, television shows, radio programs and local and national publications. She was the AMP of the year in 2009, and has consistently been one of DLC and the industry’s top performers since 2006. She can be reached at callateam@dominionlending.ca or 604-802-3983.

Does your credit score keep you up at night? For some, this one detail in their life doesn’t pop up in their mind very much, because they know they’re making good money and paying all the bills on time. When you’re in that boat, it feels pretty good. But when you miss a payment or you struggle to pay all those credit cards, lines of credit and even your mortgage, it feels instead like you’re on a sinking ship without a life raft to save you.

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 or 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.

And if you’ve been given the advice to get a couple credit cards but lock them in a vault where they can only be accessed through a sorcerer’s spell, you’re going down the wrong path. It’s all about showing the lender you use them, so go buy a stick of gum and pay it off.

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, Mortgage Expert, AMP of the Year in 2009 has been helping British Columbian families save money with the best mortgage strategy for over a decade from her Port Coquitlam office location. She is a regular contributor to national and regional media outlets and long-time host of The Mortgage Show on CKNW Saturdays at 7pm, and sits on many advisory boards for mortgage lenders & insures.

Having the support and guidance you need when making the largest purchase of your life is invaluable.  Listen and read Rosalia’s interview with Angela and Mannie of The Mortgage Show on CKNW.

1.      How did you hear about us?

I was looking for options as a new home buyer and I listen to CKNW everyday and thought I would give The Angela Calla Mortgage Team a call, I had nothing to lose and everything to gain. 

2.      What inspired you to call us?

When I started researching and talking with other people who have gone through the mortgage process The Angela Calla Mortgage Team always seemed to pop up and that solidified my comfort in calling her team.

3.      How was your experience?

I cannot tell you how nervous and scared I was about mortgages and trying to understand them! Angela’s Team was so understanding with all my questions and nervousness throughout the whole process. They basically held my hand throughout the whole process and with all the emails I had – there were many – and always got a quick and informative response. 

4.      How did it compare to consulting elsewhere prior to moving forward with us getting a mortgage?

I did consult with my bank to see if they had any deals for me since I have been banking with them my whole life. At first I thought they were looking out for my best interest and were going to give me the best deal possible. I was wrong about the banks, they were very against me going to a mortgage broker and said they they “would not be best for someone like me as a first time buyer”  The bank was trying to sell me other products and actually quoted me a .22% higher fixed rate than what I could get with Angela’s team. I am so happy that I chose The Angela Calla Mortgage Team to help me as they were very forthcoming and honest with information and encouraged me to inform myself, ask questions and to make the best decision for myself. 

5.      How much money did we save you and how will this help your current life stage?

The Angela Calla Team asked me about my future goals in home ownership, even though I am a first time buyer I have goals to purchase a bigger home in the next 3-5 years and we put a plan together to save my boyfriend’s first time buyer opportunity for our next purchase. This will save me thousands in the future for when we need the savings the most. 

6.      What advice would you have for others tuning into the program?

I have recommended The Angela Calla Team to other friends that I know who are also first time home buyers and currently have a mortgage, you have nothing to lose and everything to gain when dealing with them. Even if you are 6 months or a year away from buying, they can help you with the information that you need to be well informed with the mortgage process.They will also point out things that you would never think of, which is why they are the experts. 

Angela Calla has been a licensed Mortgage Broker for 14 years. She has been with Dominion Lending Centres since its inception in January 2006. Residing in Port Moody, British Columbia, Angela is a regular expert guest on several news stations, television shows, radio programs and local and national publications.  She was the AMP of the year in 2009, and has consistently been one of DLC and the industry’s top performers since 2006. She can be reached at callateam@dominionlending.ca  or 604-802-3983

Read the details of the budget here:  BC Budget 2018

The Angela Calla Mortgage Team will work with you personally to ensure you get the best mortgage options contact us directly at 604-802-3983 or callateam@dominionlending.ca it’s never too early or too late to start planning to position yourself best in the market.

Benefits of Home Ownership?

Pride of Home Ownership
Pride of home ownership is the number one reason why Canadians desire their own home. There is no landlord looking over your shoulder. You are able to make home improvements knowing that any appreciation that results, will be to your benefit. Home ownership gives you and your family a sense of stability and security. It’s making an investment in your future.

Appreciation
In Canada, especially in the last few years, homes have appreciated considerably and in doing so have added substantially to owners net worth. Unlike stocks and bonds, you get to live in your real estate investment. Also, in Canada your principal residence is exempt from capital gains taxes.

Mortgage Reduction Builds Equity
Each month, part of your monthly payment is applied to the principal balance of your home loan, which builds your equity. You can borrow against a home’s equity for a variety of reasons such as home improvement, sending your kids to university or college, or starting a new business. Why pay-off your landlord’s property when you can own your own?

Homeowners accumulate wealth for the future while enjoying the benefits of a shelter that they have can use, improve and sell. Their home is a safe haven for investment.

Are You Ready to Buy a Home?

First – do you have the financial resources? You should have five percent of the purchase price of a home for the down payment, but ideally even more. Are there other priorities in your life e.g. starting a new business, which require your savings? If not, buying a home should be on your radar.

Second – do you expect to stay in your new home for some time? Moving can be expensive and you will want to build some equity before having to relocate. Your job and home life should be stable.

What Can You Afford?

If you haven’t already gone through the mortgage pre-qualification process, you will need to meet with a mortgage broker- us at callateam@dominionlending.ca
We will establish how much of a mortgage you will qualify for. Mortgage rates vary considerably and it is paramount that they shop around for the best rate, terms and options to protect your credit score opposed to doing it on your own.

Our Mortgage Calculator will help you determine what monthly mortgage payment and the maximum mortgage you can manage. Note: if you are buying a condo, the amount of your monthly assessment has a direct impact on how much you can afford to spend on your mortgage.

First time homebuyers may want to take advantage of the federal government’s Home Buyers’ Plan. Under this plan, you may use up to $25,000 of your RRSP towards the purchase of a home. The money is tax-free as long as you pay it back in the next 15 years. Ask your Licensed Real Estate Agent for details.

Questions To Ask When Assessing Home Features
Do you need several bedrooms, more than one bathroom, space for a home office, a two-car garage?
Do you want air conditioning, storage or hobby space, a fireplace, a swimming pool? Do you have family members with special needs?
Do you plan to have children? Downtown or suburbs? Proximity to recreation or work.
Do you need a substantial backyard? Pets?
Is there adequate storage space?
Will any remodeling be required to make the home move-in ready for you?
What service providers (cable, Internet, telephone, Satelite) are available in the area, and is the house completely wired for each? Can you hear me now – how good is the cell phone reception?
How much are the yearly property taxes?
How much do utilities run each month? Does the house use gas or electric for the furnace, water heater, and appliances?
How old are the major appliances, and which are included with the house?
Have there been any major repairs to the house, and if so, when were they completed? For example, how old is the roof? Has water ever damaged the basement or foundation?
Ever had problems with insects, such as termites and spiders, or rodents?
Older homes need to be carefully examined – Windows may need caulking or new sashes, bathroom tiles may need grouting, home may need rewiring (planning on a hot tub or sauna?), a new hot water heater, or a new furnace.

Location, Location, Location
How far will you be commuting and what is the traffic like? Factor in cost of fuel.
Where will your children attend school and how will they commute?
Are there recreational facilities and parks close by?
Are you close to family and friends?
Is safety or high crime an issue?
Is the property close to an obstacle or negative influence? (i.e. an apartment building, shopping centre, school, radio tower, power lines, LRT or railroad track, highway, airport or commercial project).
Access to schools, work, recreation, shopping centres, public transportation, cultural attractions, libraries, churches and hospitals
Adjacent undeveloped land – what is proposed for this or other green space?
Heavy traffic can be noise nuisance and hazard for children
Distance from the unit to amenities, parking, walkways, roads, public transit
Does the neighborhood reflect positively on the value of the condo and your lifestyle choice?
Does this neighborhood, for any reason, have a poor reputation?
Is the future economic climate for the area good? Are businesses moving in? Is there government investment?
Are people moving in or out of the neighborhood? What is their age, income level, family size?
Are there plans for this neighborhood that you may be unaware of (i.e. a future highway, a commercial development or a new housing development) that will provide competition on resale?

Noise and Privacy
Proximity to highways, driveways, parking lots, playgrounds, trains.
Proximity to elevators, garbage disposal, fire exits, heating and air conditioners.
How well is the building soundproofed.
Visit at different times/weekends to check noise levels and activity.

Home buying is an easy process when you are working with the right Real Estate agent. I’m here to help answer any questions you have an help walk you through the process with a free consultation.

Robert Boies Royal Le Page 604-341-3009
 

Questions on the best mortgage for you? Contact The Angela Calla Mortgage Team to help you personally 604-802-3983 callateam@dominionlending.ca

The Bank of Canada has raised it’s key lending rate .25% as we had projected it would in our previous email. This is the 3rd increase it has moved its benchmark rate from the once record lows last summer. Bank prime will follow to 3.45% (TD has a higher prime presently) The impact for borrowers is approx $13 per 100k in mortgage amount. If you have a mortgage rate of prme minus.50 this means your new rate will likely be 2.95%.

Here is the full release from this morning, and an articles to note.

https://www.bankofcanada.ca/2018/01/fad-press-release-2018-01-17/

http://www.cbc.ca/news/business/prime-interest-rate-increases-1.4201403

If you have any questions on reviewing your lock in optons or starting to secure your options for an upcoming renewal kindly contact us to help you 604-802-3983 or callateam@dominionlending.ca

The Angela Calla Mortgage Team gives you clarity on the best mortgage by being transparent, unbiased free mortgage advice with choice. We are here to help you personally with your mortgage.

With 47 per cent of homeowners scheduled to renew their mortgages this year, 2018 is a year of change for lots of Canadians.

Here are the top 8 things you can do to get the best renewal

1. Pull out your mortgage renewal now, and start early. When you are proactive instead of reactive you can see if there is anything on your credit score or lifestyle that we can modify to ensure you are positioned for the best renewal. You are only in a position to do this when you start early- in the last year of your mortgage you will have the most amount of options available. For example, there can be an inaccuracy in your credit report or you may be considering an income/job change that would impact your options. We can look at timing accordingly for you.
2. Do not just sign the renewal offered. Lenders can change the terms of your mortgage, and the renewal you are signing can cost you up to four per cent of your equity if you are with the wrong lender for your current life stage.
3. Most people think the best rate is the best renewal – WRONG. The terms are most important and with all terms moving or selling is the only reason most people think they would ever break a mortgage- THIS is simply not the case, a change in the interest rate market, divorce, health, job change, investment opportunity and many other reasons would contribute to a future modification being beneficial for a consumer.
4. Take into consideration lender history. The lender can have a higher prime then anyone because they know the cost to leave outweighs staying the course. The lenders are very smart with their calculated risks- and this is not something they have an obligation to disclose.
5. Remember your lender has a bias – their job is to handcuff you so they can make as much profit off you as possible- don’t be a victim.
6. Do not shop each lender on your own, it takes points off of your credit score. All lenders have different rates based on your score and you want to position yourself to get the best. By using a mortgage professional, they can shop multiple lenders protecting your credit using only one application, while the rate variation can be on average a half a percent!
7. Don’t get sucked into the online rate shopping– any monkey can post a rate online and you can drive yourself crazy looking at something that does not exists. In today’s complex mortgage market there are significantly different rates based on – insured mortgage vs uninsured mortgage, switch vs refinance, purchase or renewal, principal residence vs rental, salary or self-employed, 600 credit score or 700 credit score, amortization of 20 years to 30 years, type of property condo vs house, and leased land or freehold. The variations can mean a difference in thousands of dollars. Like diagnosing a medical condition, you can’t go online, you do have to put in the appropriate application and supporting documents to verify which options are available to you that will result in the lowest cost in borrowing.
8. Remember your mortgage is the largest debt and investment most of us have, when you contact an independent mortgage professional, we are going to invest all the work and expertise and advise you in your best interest regardless if we get your business. We may after our review advise you to stick with your existing lender, or make another recommendation for you. We are only here to enhance your finances and save you money, and there is no cost for our service.

Angela Calla is in the top 1% of all mortgage professionals in Canada and long time host of The Mortgage Show on 980 CKNW, she can be reached at acalla@dominionlending.ca 604-802-3983 for further comment or questions.

Your credit score reflects your financial health. It is represented by a number determined by a mathematical formula. Your credit score helps determine if you are a risk to lenders. And good credit is very important to qualify for a loan. In addition to your ability to pay, a mortgage lender will look at your willingness to pay. When you apply for a loan, the lender will consider your credit history before making a decision.

Your credit score is determined by these factors*:

Read more:
homeownership.ca/how-can-i-make-sense-of-the-homebuying-process/understanding-your-credit-score/

Angela Calla, Mortgage Expert, AMP of the Year in 2009 has been helping British Columbian families save money with the best mortgage strategy for over a decade from her Port Coquitlam office location. She is a regular contributor to national and regional media outlets and long-time host of The Mortgage Show on CKNW Saturdays at 7pm, and sits on many advisory boards for mortgage lenders & insures.

If you happen to be going through, or considering a divorce or separation, you might not be aware that there are mortgage products designed to allow you to refinance your property in order to buyout your ex-spouse.

For most couples, their property is their largest asset and where the majority of their equity has been saved. In the case of a separation, it is possible to structure a new mortgage that allows you to purchase the property from your ex-spouse for up to 95% of the property’s value. Alternatively, if your ex-spouse wants to keep the property, they can buy you out using the same program.

Here are some quesionts about the spousal buyout program:

Is a finalized separation agreement required?
Yes. In order to qualify, you will be required to provide the lender with a copy of the signed separation agreement. The details of asset allocation must be clearly outlined.

Can the net proveeds be used for home renovations or to pay out loans?
No. The net proceeds can only be used to buy out the other owner’s share of equity and/or to pay off joint debt as explicitly agreed upon in the finalized separation agreement.

What is the maximum amount that can be withdrawn?
The maximum equity that can be withdrawn is the amount agreed upon in the separation agreement to buy out the other owner’s share of property and/or to retire joint debts (if any), not to exceed 95% loan to value (LTV).

What is the maximum permitted LTV?
Max. LTV is the lesser of 95% or Remaining Mortgage + Equity required to buy out other owner and/or pay off joint debt (which, in some cases, can total great than 95% LTV). The property must be the primary owner occupied residence.

Do all parties have to be on title?
Yes. All parties to the transaction have to be current registered owners on title. Solicitor is required to do a search of title to confirm.

Do the parties have to be a married or common law couple?
No. The current owners can be friends or siblings. This is considered on exception with insurer approval. In this case, as there won’t be a separation agreement, there is a standard clause that can be included in the purchase contract that outlines the buyout.

Is a full appraisal required?
Yes. When considering this type of a mortgage, it is similar to a private sale and a physical appraisal of the property is necessary.

If you have any questions about how a spousal buyout mortgage works, please contact your local Dominion Lending Centres mortgage professional. Be assured that our communication will be held in the strictest of confidence.

-Michael Hallett

Angela Calla has been a licensed mortgage broker for 14 years. She has been with Dominion Lending Centres since its inception in January 2006. Residing in Port Moody, British Columbia, Angela is a regular expert guest on several news stations, television shows, radio programs and local and national publications. She was the AMP of the year in 2009, and has consistently been one of DLC and the industry’s top performers since 2006. She can be reached at callateam@dominionlending.ca or 604-802-3983

Variable Rates
There is plenty of speculation we will see a raise in the prime rate Jan. 17 – which means variable rate mortgage holders will have an increase to their rate and payment. While we can’t be certain, the numbers at this time appear to support it. We are sending this to you in advance of any increase as our continued commitment to give you the power to make decisions proactively for you and those you care most about.

While personally we are sticking with the variable rate, (a variable rate is still lower than a fixed rate option when you consider most people will see a 1% increase once they lock in) that decision may not be for everyone.
Here is the link to the article from DLC’s chief economist:
Robust Canadian Jobs Report for December Tops Off a Blockbuster Year

If you feel you no longer want to stick with a variable rate contact, we can assist with your decision moving forward.

Fixed Rates
Please keep in mind fixed interest rates are on the rise as well. With 47 percent of Canadians having a renewal this year, contact us today if you or someone you care about has a renewal in the coming year. We can help secure your options today or see if there is anything that can be done to get you in a better position to maximize your opportunities. Here is my most recent segment on Global Morning News Updating Canadians on the mortgage market:
Open House 2018 Mortgage Outlook

The best mortgage plan is one that is developed by assessing your goals and life stage. The Angela Calla Mortgage Team will help you personally call us at 604-802-3983 or email callateam@dominionlending.ca
To contact Angela Calla directly call 604-802-3983 or visit www.angelacalla.ca