#1) There is no inflation
#2) The pain would be catastrophic
#3) Rules are the new rates

Read the full article: 3 Reasons Canadian Mortgage Rates Will Never Hit 5%

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

The Now News Announces Business Excellence Nominees

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

Everything you need to know when purchasing your home.

Home Buyers Guide

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

http://business.financialpost.com/news/economy/after-hiking-twice-theres-no-predetermined-path-for-rates-from-here-poloz

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.

In addition to recent rate hikes, we have even more regulation changes coming that will make it more difficult to qualify for mortgages and access your equity from this point on.

To protect yourself in the best way possible:

1. If you have a mortgage renewal in the next year, please contact us directly to begin reviewing your options now

2. If you have debt outside of your mortgage, now is the time for us to help you restructure your mortgage and pay it off by using your equity

3. If you are considering home renovations, please contact us to access your equity to cover the costs of the improvements

4. If you want to access your equity for any investments, please contact us at callateam@dominionlending.ca or 604-802-3983 before the rules change in order to best position yourself.

Here is the link to the full article about the upcoming changes: https://www2.mambonetcom.com/cgi-bin/public/redir.pl?cid=477&rid=799002&id=2461

If you or anyone you care about have questions on how to secure the best mortgage strategy, we are here to help.
Angela Calla, AMP

The Bank of Canada is raising its target for the overnight rate to 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent. It is most likely prime will follow with the full .25 percent increase within hours if not a day.

Should you lock in your mortgage? I would suspect this will be the last increase that is expected due to global economic factors, and political changes. This now has reversed the 2 decreases in 2015. I personally am staying the variable rate mortgage course (which is not a decision for everybody pending your personal circumstances). The average borrower with a 300k mortgage will see a monthly increase of $50 per month.

The full press release can be viewed here: https://www2.mambonetcom.com/cgi-bin/public/redir.pl?cid=477&rid=794442&id=2456

Article of note: https://www2.mambonetcom.com/cgi-bin/public/redir.pl?cid=477&rid=794442&id=2457

The next scheduled date for announcing the overnight rate target is October 25, 2017. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR at the same time.

If you have questions on your mortgage kindly email us, or call 604-802-3983.

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

Tougher Mortgage Rules Ahead

Are you planning to move, renovate, invest or consolidate debt?

Tougher mortgage rules are on the horizon that may prevent you from being approved for a mortgage!

As your local independent mortgage professional, my team is here to help!

Plan ahead, explore your financing options today and look at the ‘what if’ so that you don’t miss an opportunity.

With rates increasing and rules tightening many families are looking ahead and accessing equity now.

Read the Article Here: ‘Playing with fire’: Housing experts warn OSFI against new stress tests

To learn more contact us directly at 604-802-3983 or email callateam@dominionlending.ca

Angela Calla has been a licensed mortgage broker for 13 years – since she was 22 years old. 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.

Is My Mortgage Portable?

The question: ‘Is my mortgage portable?’

The answer most often given: ‘Yes.’

This answer is increasingly wrong.

In reality, you may qualify to move 80% or less of the current balance.

The proper question: ‘Do I need to re-qualify for my current mortgage to move to a new home?’

The proper answer: ‘Yes, your mortgage is portable, but only if you re-qualify under today’s new and more stringent guidelines.’

Who is the very best person to answer the portability question? Your mortgage broker.

They will answer this question accurately. And it can only be answered accurately with a complete and updated application, along with all supporting documents to confirm the maximum mortgage amount under current guidelines.

Calling the 1-800 number on your mortgage statement, or asking the teller while depositing cheques is far less likely to get you an accurate answer. Instead that tends to be the origin of the one word answer.

Call your mortgage broker as soon as you start thinking about moving.

Too many clients learn this lesson the hard way. They sell their existing property before speaking with their Mortgage Broker, and in some cases they also enter binding purchase agreements under the mistaken assumption they can just ‘port their mortgage.’

What is the problem?

Key Point – The Federal Government has created a dynamic in which there are two different qualifying rate used for approvals. One is for the initial purchase or refinance, and the other is for when it comes time to move to a new home.

So the qualifying rate used yesterday to get you into a five-year fixed rate mortgage on your current home is not the one being used to qualify you to move that same mortgage to a new home down the street, even just one day later.

Key Point – One day into your new five-year fixed mortgage you are now subject to a ‘stress test’. In a nutshell, the stress test effectively reduces your maximum mortgage amount by 20%. Meaning that you can only port 80% of the current balance to another property… just one day later.

So, what’s the fix?

The best fix – The government could add a simple sentence to their lending guidelines along the lines of ‘If a borrower qualified for their mortgage at the five-year contract rate at inception, then the borrower shall be allowed to re-qualify at the original contract rate when moving their mortgage to a new home.’

Currently this fix does not exist.

The current fix – You pay a penalty to break the current five-year fixed mortgage you have and then apply for a new five-year fixed mortgage. Which is as ridiculous as it sounds.

The penalty amount? Approximately 4.5% of balance, i.e., $14,000 on a $300,000 mortgage balance. Yes, you read that correctly.

This is entirely unreasonable. It is not a fix at all. If you bought with 5% down, and then a few months later were transferred to another province and had no choice but to move, this represents your entire down payment vanishing due to a simple oversight by the federal regulators.

Dominion Lending Centres Inc. August 2017 Newsletter.

Angela Calla has been a licensed mortgage broker for 13 years – since she was 22 years old. 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.

Ten Things to Know About Prime & Your Mortgage

1.Fixed-rate mortgage holders are not affected by Bank of Canada rate changes during their current term. Only those in either adjustable-rate or variable-rate mortgages
need read on.

2.On July 12 lenders increased variable-rate borrowing costs by 0.25% to match the Bank of Canada increase of the same amount on the same day.

3.There are three more scheduled Bank of Canada meetings this year, and there remains doubt about any further increases this year. Few expect anything more than a 0.25%
further increase.

4.This was the first increase to Prime in nearly seven years, and it follows two 0.25% reductions in 2015.

5.A 0.25% rate increase equals a payment increase of $13 per month per $100,000 of outstanding mortgage balance for those in an adjustable-rate mortgage. That means a
$300,000 mortgage balance will see payments rise by $39 per month.

6.Not all payments increase. Several lenders differentiate from an adjustable-rate product by offering what is called a ‘variable-rate’ mortgage and their clients will
not have any payment change at all. Instead, the life of the mortgage is extended slightly. A letter in the mail from your lender should be arriving to confirm which
camp you are in.

7.There is no penalty or fee to convert to a fixed rate. Whether in an adjustable-rate mortgage or a variable-rate mortgage, you have the option of locking into a
fixed-rate at any time without cost. The length of the term offered varies according to policy and remaining time to maturity, with some lenders allowing conversion
to a three-year fixed from day one, but most ensuring they have you under contract for the full original term.

8.Locking in can be very costly. The prepayment penalties differ significantly between variable- and fixed-rate products. Be careful about locking in. Aside from
immediately increasing your payment even further, you stand to increase your potential prepayment penalty by up to 900%. Few think they will trigger a penalty, yet
more than half of borrowers actually do.

9.No surprises. Mortgage lenders failed to give us the full 0.25% decreases in 2015, instead only reducing rates by 0.15% both times. Counting on our short memories
and lack of uproar, lenders chose to increase by the full 0.25% on July 12, rather than doing what would have been fair and only increasing 0.15%.

10.Future increases will depend largely on consistent economic good news. This is what drives interest-rate increases.

Stay tuned for next month’s newsletter as we weigh the likelihood of another 0.25% increase at the September Bank of Canada meeting.

Dominion Lending Centres Inc. August 2017 Newsletter.

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

CHIP News: Top 3 Misconceptions About Reverse Mortgages In Canada

I recently read an article by Jamie Hopkins in Forbes magazine, entitled “Americans Don’t Even Know What Their Most Important Retirement Asset Is”.

The article highlighted 3 common misconceptions about reverse mortgages and unsurprisingly, they are prevalent in Canada as well as in the U.S.

Top 3 Misconceptions About Reverse Mortgages:

1. The Bank Owns Your Home.

2. Your Estate Can Owe More Than Your Home

3. The Best Time to take a Reverse Mortgage is at the End of Your Retirement

Let’s examine each misconception in more detail.

1. The Bank Owns Your Home.

Over 50% of Canadian homeowners over the age of 65, believe the bank owns your home once you’ve taken a reverse mortgage. Not true! We simply register our position on the title of the home, exactly the same as any other mortgage instrument, with the main difference in the flexibility of not having to make P&I payments on the reverse mortgage.

2. Your Estate Can Owe More Than Your Home

A reverse mortgage, unlike most traditional mortgages in Canada, is a non-recourse debt. Non-recourse means if a borrower defaults on the loan, the issuer can seize the home asset, but cannot seek any further compensation from the borrower – even if the collateral asset does not fully cover the full value of the loan. Therefore, when the last homeowner dies (and the reverse mortgage is due), the estate will never be responsible for paying back more than the fair market value of the home. The estate is fully protected – this is not the case for almost any other mortgage loan (specifically secured lines of credit) in Canada, which is full recourse debt. So read the fine print the next time you offer to co-sign for a loan for mom!!

3. The Best Time to take a Reverse Mortgage is at the End of Your Retirement

This is a common mistake that reflects the “old-school” financial planning mentality.
For the majority of Canadians (without a nice government pension), the old school financial planning mentality is about cash-flow, and is as follows:

a) Begin drawing down non-taxable assets to supplement your retirement income.

b) Once your non-taxable assets are depleted, begin drawing down more of your registered assets (RSP/RIF) to supplement retirement income.

c) Once your registered assets are depleted, sell your home, downsize and re-invest to generate enough cash-flow to last you until you die.

The problem with the “old-school” financial planning model is two-fold:

1. 91% of Canadian seniors have no plans to sell their home (CBC News “Canadian Boomers Want To Stay In Their Homes As They Age).

2. You are missing out on a huge tax-saving opportunity by not taking out a reverse mortgage in the beginning of your retirement.

“Research has consistently shown that strategic uses of reverse mortgages can be used to improve a retiree’s financial situation, and that reverse mortgages generally provide more strategic benefits when used early in retirement as opposed to being used as a last resort.” – Jamie Hopkins, Forbes

In Canada, a reverse mortgage can be set-up to provide homeowners with a monthly draw out of the approved amount. For example: client is approved for $240,000 and decides to take $1000/month. This is deposited into the clients’ bank account over the next 20-years. Interest accumulates only on the amount drawn (i.e.: not on the full $ amount at the onset).

This strategy allows clients to draw down less income from their registered assets to support their retirement lifestyle. In turn, this can create some excellent tax savings, since home equity is non-taxable. Imagine lowering your nominal tax bracket by 5 – 10% each and every year over a 20 year period?! The tax savings can be huge. You are also able to preserve your investable assets, which historically, can generate a higher rate of return when invested over a greater period of time.

In summary, Canada and the U.S. both have aging populations and both have misconceptions about reverse mortgages. Learning about these misconceptions will allow you to offer your clients the best advice on how to balance retirement lifestyle and cash-flow, with the desire for retirees to age gracefully within their own homes.

John Fries, CIM
Business Development Manager
HomEquity Bank
Recognized by CMP as a Top 30 BDM in Canada in 2016

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