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.

There is always a lot of talk about the growing debt in the personal finances of everyday Canadians. And to some extent, it may be true. No doubt, many consumers have gotten used to throwing things on a credit card and then moving on to the next big purchase. The federal government was so concerned about personal debt, they enacted a bunch of rules related to qualifying for a mortgage in an effort to cool off the market. The politicians in Ottawa were concerned a sub-prime mortgage fiasco like the one that devastated the U.S. and world economy a decade ago would happen in Canada. You could argue, the intentions of these tougher qualifying rules were noble, but evidence suggests these measures weren’t really warranted. The most recent numbers by the Canadian Bankers Association (CBA) seems to dispel the concerns by the federal government.

According to the CBA, at the end of January 2019, just .25 per cent of mortgages through the major banks were in arrears of three months or more. For more perspective, out of the 4.75 million mortgages in Canada through the banks, 11,742 were in arrears. That’s basically statistically insignificant. And what it also seems to suggest, is that Canadians are actually very responsible when it comes to paying their biggest bill on time.

A closer look at the numbers also appear to blow Ottawa’s case for tough mortgage rules out of the water.

The hottest markets during the last decade were Ontario and B.C. Home prices skyrocketed in cities like Vancouver and Toronto, the average price of a single-family home climbed to more than $1 million.

There was a wide concern that homebuyers were taking on too much mortgage and would end up under water. Again, the CBA’s stats seem to suggest otherwise. Both B.C. and Ontario have the lowest rate of arrears among the provinces. In Ontario, just .10 per cent of mortgages are in arrears, while in B.C., it’s slightly higher at .15 per cent. Just 955 mortgages in B.C. were in arears at the end of January 2019 out of more than 643,000. The Atlantic province had the highest percentage of mortgages in arrears at .52 per cent.

Obviously any amount of people struggling to keep their home is unfortunate. It would be ideal if not a single homeowner defaulted on their mortgage. With an election this fall, it’s anyone’s guess where the mortgage qualifying rules are going to go. But statistically speaking, the mortgage industry is on very solid ground and Canadians are more than capable of paying their mortgage on time.

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.

Oftentimes even the most organized and detail oriented first-time homebuyer can overlook some unexpected costs that come with the purchase of their new home. We are outlining four of the costs that we most commonly see overlooked by homebuyers in hopes that we can better prepare you—and save you from a few surprises!

1. Closing Costs

   Congratulations! Your offer was just accepted on your new home, you’re one step closer to adding a major asset to your portfolio! We don’t want to shock or dampen the excitement of this moment. However, it’s important that you factor in closing costs right at the beginning of your purchase. The best time to do this is before even applying for your pre-approval or making any offers on a home. Closing costs may include:

   • insurance
   • taxes (Land Transfer, Property, and others depending on what province you are in)
   • legal/notary fees
   • inspection/appraisal fees.

   A general rule of thumb is to set aside 1.5 per cent of the purchase price to account for the closing costs above. To plan ahead, consider speaking to a mortgage broker and your realtor. They can help you determine just how much you should set aside to accommodate those additional closing costs.

2. Utility Bills

If you’ve gotten used to living in a small space, such as a condo or an apartment, you may be surprised how much more water, heat, and energy you consume in a larger space such as a detached home or a townhouse. It’s important to prepare for these as you do not want to have a “surprise” when your bill arrives in the mail and it’s nearly double what you are used to spending!

Factoring in these bills is also crucial if you are going from renting to owning! Often times the landlord will cover a portion of your utility bills or your cable/internet depending on the contract you had with your landlord. Of course, once you are a homeowner, you are covering the entire cost! Ask family members, friends, even your mortgage broker or realtor what is a realistic cost for things such as cable and internet, water, heat, etc. You’d be surprised how fast they can add up!

3. Renovations and Updates

Unless you bought a newly built, brand new home, there is undoubtedly going to be future renovations and updates that you will need to do on your home. They may not need to happen right when you move in, but sometimes the unexpected does happen and having money set aside can make a world of difference! When you have your home inspection completed, make a prioritized list of what will need to be fixed/updated first and set aside money each month for it. In addition to the “must do” updates/renovations, new property owners may also want to make aesthetic improvements, whether they mean to reside there or not. Naturally, a homeowner wants to make the place feel more like their own, and investors want to add value their investment or make adjustments to make the asset more aesthetically pleasing.

4. Ongoing Maintenance

Homes require maintenance—all the time! Ask any homeowner and they will tell you that there is always home maintenance in one form or another happening.
A few common home maintenance costs may include:

• Gutter cleaning
• Roof repair/maintenance
• Drywall repair
• Furnace cleaning
• HVAC and Duct cleaning
• General plumbing and electrical fixes

Every home is different in regards to how much you should budget annually for regular maintenance. It will depend on the age of your home, square footage, climate in your region, and overall condition of your home.

In closing, property ownership shouldn’t be dampened by financial rules caused by lack of preparation. All of these costs, as well as additional other costs, are easy to plan ahead for and to ensure that you have budget set aside each and every single month to make sure that you stay on track. As a rule of thumb, the CMHC states that your housing costs including mortgage payment should not exceed 39 per cent of your monthly income. Treat this number as a point of reference when you’re doing your budget and consider leaving room for the unexpected. It’ll give you peace of mind on the long run and allow you to actually enjoy your new home!

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.