Oct 3rd 2016

Federal Finance Minister Bill Morneau unveiled sweeping changes that will affect all sectors of the housing market, including rules aimed at slowing the flood of foreign money into the market and stricter borrowing qualification requirements from lenders.   The changes can be viewed here: http://www.fin.gc.ca/n16/data/16-117_1-eng.asp

This means that borrowers have to qualify at a higher interest rate than what they’re actually getting.   Previously, the only “stress test” that was done this way was for variable rate mortgages and for any mortgage terms less than 5 years in length.   Now, 5 year fixed mortgages will be qualified at the current benchmark rate of 4.64% (Bank of Canada 5-year Posted Rate).   This means it will now be just as hard to get a 5-year fixed rate as it is to get a variable or shorter term mortgage.   Also, all mortgages will now have to be qualified at a 25-year Amortization, regardless if the borrower chooses to take a 30-year amortization on their mortgage.

What This Means:
1. Mortgage applications completed by the lender prior to Oct 17th 2016 are
fine. See the roll out technical link here:
http://www.fin.gc.ca/n16/data/16-117_2-eng.asp
2. If You Have A Pre-Approval it may be void after the changes, so you definitely want to check how this will impact your purchasing power.
Even if you have a 20% down payment, you may have to qualify using a 25 year amortization instead of the 30 year used to qualify you previously.

As An Example:  Before the changes, a household income of $80,000 would qualify you for a mortgage of about $500,000 using a 5-year Fixed Rate qualification.   With the changes as of October 17th, you will then need a household income of $100,000.00 for that same mortgage amount.   
Bottom line: If you’re trying to obtain a mortgage that hasn’t
been finalized yet, verify what changes are applicable to you.
The ripple effect may mean a decrease in your property value and your ability to refinance. 
To place this into perspective, in 2008, fixed rates were 5.99%.  This is still much
higher than the current qualifying rate of 4.64%.   Interest rates
that borrowers will actually get are still expected to remain near record lows.
Why Is This Being Done?
If the market changes and rates increase, it’s harder for existing Canadian borrowers to say that they now can’t afford the
mortgages for which they were approved due to the fact that they were qualified using a much higher rate than what they were actually receiving.
Let this also be a reminder of how choosing a completion date that is more than a month away can be risky, especially in times like today when
guidelines can change very rapidly.
Rest assured, an independent mortgage professional is at the forefront of these industry changes and has access to multiple lenders and options. This allows for more clarity and better strategies for any mortgage that you’re looking to obtain. We are always here personally to help you navigate the market and get the best options

Angela Calla

Mortgage Expert

Dominion Lending Centres 604-802-3983 callateam@dominionlending.ca www.angelacalla.ca

Mortgage Broker Insights: How to Get Clarity and Control with Industry Expert Angela Calla

Angela Calla shares valuable insights about mortgage brokers and the help they can provide.

As exciting as real estate purchases are, they can be very tricky, especially on the financial side. British Columbia real estate is no exception, especially given the large price differences between various areas.

The help of a mortgage expert is becoming a necessity in this hectic market. We’ve turned to Angela Calla, resident of Port Moody BC and a highly successful mortgage professional with over twelve years of experience, to let shed some light on financial issues.

What does your job as a mortgage professional entail?

Our position as a mortgage professional is very simple. It’s to provide clarity with the power of choice, with being unbiased to particular lenders. This delivers the lowest cost of borrowing and guidance not only when you sign a mortgage, it assists you navigating any changes in your personal life or the mortgage market.

We understand home ownership is an important cornerstone of wealth when managed properly, so we protect your investment with different strategies, accordingly and proactively, as you would expect from any relationship where a large amount of money is involved.

What do you love most about your job?

I love delivering the clarity on the costly mistakes to avoid. You can only do better for yourself when you have clarity. Dealing with any lender on your own is financial suicide, as they clearly have a bias to themselves. Once borrowers gain this clarity, they are able to make better, more profitable decisions for their families, instead of a lender.

What is the single most difficult part of a mortgage professional’s job?

It’s important for mortgage professionals to help borrowers understand that using our services is free.

We get compensated once the mortgage is completed with the selected lender. It also protects the clients’ credit score, as multiple lenders can be shopped, or a change can be made after signing and before completion, with only 1 credit check. If the client did it on their own, it could impact their credit score and ultimately what offers would be available to them as a result.

How should buyers prepare for the home buying process?

Prepare by consulting a professional, so you have complete clarity on what everything means to you specifically. If you look at averages, you will miss local opportunities. When it comes to preparing to buy, your mortgage professional can advise you based on your income, goals, credit and down payment, to guide you through the process properly. This makes sure there are no delays in reaching you goals, that could have been prevented.

Don’t be fooled by flashy advertising on low rates. Understand there is a reason behind all offers, and it’s often what they are not telling you about something that will cost you deeply in future.

Did you notice a preference for buying in the suburbs, and if so, what are the reasons for that?

When one is looking to make a purchase, it’s common to say, for example: “I can afford to rent a condo for $1,200, so I can afford to purchase a condo for $250,000, once I incorporate my strata and taxes into my monthly expenses that come with home ownership”.

Well when you look at where you can buy for that value, generally the places most suited for the borrower pending lifestyle and occupation have been in the suburbs. The suburbs provide more space for the price, so those who value space gravitate there. It all comes down to affordability.

Is taking out a mortgage an option used also by the rich in British Columbia?

Contributing to lenders’ and insurers’ advisory panels for the past decade has given us the opportunity to really be at the forefront of mortgage changes and to give our clients real time advise on how to understand and optimize the market.

Utilizing a balanced approach with clarity is how educated investors make decisions. If taking a mortgage works for their goals, it will be an option they will take.

Any other insights you’d like to share?

When it comes to your mortgage or real estate transaction, the decisions you make about who you align yourself with makes all the difference in your future financial success. Take it very seriously, and ensure they are practicing what they preach, and that they have a system and strategy, specifically in respect to how they will continue to help you after the initial deal is complete.

It’s that ongoing management that makes the difference in your financial success. Mortgages are much more than interest rates. It’s possible to have a lower rate and a higher cost of borrowing, which is why you need an unbiased professional to guide you through getting the lowest cost of borrowing, at all times.

Angela Calla has been a licensed mortgage broker for 12 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 for several news stations, television shows, radio programs and local and national publications.

She was the AMP of the year in 2009, has consistently been one of DLC and the industry’s top performers since 2006.

http://www.point2homes.com/news/canada-real-estate/mortgage-broker-insights-clarity-control-industry-expert-angela-calla.html  

Hello, we recently got this oppertunity for our clients from The W Network for a home renovation show that’s new in Vancouver

They are looking for homeowners to appear on a new series airing on W Network! Worst to First

There team will transform a home to be the best on the block in only 5 WEEKS TIME! 

If this sounds like an opportunity you are interested we are accepting applications here: https://castingcall.typeform.com/to/uU68ub 

Financing questions on your home renovation? Contact The Angela Calla Mortgage Team directly today at 604-802-3983 or callateam@dominionlending.ca 

Angela Calla

Mortgage Expert

DLC-Angela Calla

Host of The Mortgage Show Saturdays at 7pm on CKNW

www.angelacalla.ca 

Summer Report in Mortgages                Thursday August 18th 2016

Before taking the step from renting to buying, there are additional boxes to check, such as looking at your personal financial situation and getting advice from a mortgage specialist.

Not surprisingly, homeownership continues to rank high on the list of priorities and goals for Canadians of all ages. A recent Ipsos study found that almost three in 10 say they are likely to buy a home within the next two years, and 89 per cent feel buying a house or condo is a good investment. 

Having an opportunity to build equity while enjoying the comforts of your own home is attractive, yet it is essential to crunch the numbers before taking the plunge, says Bill Whyte. “You want to go in with your eyes wide open. Don’t get caught up in the hype, do your homework and comparisons, and make an informed choice,” says the senior vice-president and chief of member services at Meridian, Ontario’s largest credit union.

Mr. Whyte considers current interest rates an important factor fuelling the real estate market. “The historic low interest rate environment can help people gain entry into the market – it allows them to carry more debt. And while rates may not stay exactly where they are today, they are not likely to jump dramatically over the next few years.

“Today, you can get a five-year mortgage rate for under 2.5 per cent, which can make this time frame very stable for people who have taken all the different aspects of their personal situation into account.”

While low interest rates act as an incentive for prospective homebuyers, entering a “hot market – where real estate prices have outpaced earnings – can [be] challenging,” he cautions.

Residents in the Toronto area, for example, may adjust their expectations as they search for more affordable options, he explains. “Some are moving further into the suburbs or even beyond, to Hamilton, Guelph, Barrie or Oshawa. Others opt for areas with higher density and choose a condo, where we haven’t seen quite the same price increase as in detached homes.”

Both scenarios have different implications for expenses – such as commuting costs – that homebuyers should be aware of, says Mr. Whyte. “You have to make sure you can afford your mortgage and related expenses.”

Working through a budget with a mortgage professional or financial adviser can be helpful, especially for first-time buyers, he notes.

“Knowing your goals can help you map outthe steps for getting there” Angela Calla, is a Host of”The Mortgage Show on CKNW AM980 Saturdays at 7pm

The same principles apply in the Vancouver region, says mortgage professional Angela Calla, who is also the host of The Mortgage Show on CKNW Radio. “A one-bedroom condo in downtown Vancouver can cost $500,000 on average, which would take a gross annual household income of approximately $100,000 to qualify for. If you look at Port Coquitlam or Coquitlam, which is a 30-minute commute from the downtown core, a one-bedroom condo can still be purchased for around $200,000, which takes a gross annual income of approximately $40,000 to qualify for,” she explains. “For the Coquitlam condo example, you would need to have a $10,000 down payment. Your mortgage payment is approximately $890 a month, plus $300 in strata fees and taxes. That puts your total monthly payment at around $1,190.”

An estimate like this can help potential homebuyers test their appetite for owning a place. “If you are paying over $1,500 a month in rent, why not take a look at what’s out there for you?” suggests Ms. Calla.

She adds that it’s never too early to seek advice. “Knowing your goals can help you map out the steps for getting there. If you are saving for a $10,000 down payment, for example, and you’re starting from zero, you would aim for saving $834 a month for a year by finding ways to reduce your spending or bringing in that money by selling an asset,” she says. “And if you have outside debt, it’s important to know which loans should be paid out to help your qualifications along.”

Mr. Whyte cautions that goals need to be realistic since one of the most common pitfalls is purchasing a home that is out of the buyer’s  price range. “There is no sense owning a home if you’re not able to pay your bills or go out and do the things you want to do,” he says. “We also recommend ‘stress testing’ your mortgage rate – we run the scenario of it going up one per cent at the end of the term to see if you can afford that.”

Some first-time homebuyers are gifted money from their parents for getting a foothold in the housing market, he says. Others postpone purchasing a home in order to save a more substantial sum for a down payment.

Mr. Whyte has also seen examples where friends and family members pool their resources in order to afford homeownership. “Among the non-traditional scenarios are two young families, groups of friends, or elderly and younger relatives getting together to buy a home,” he says, adding that Meridian offers mortgage solutions that are designed to take such creative approaches into account.

” End of article”

The Angela Calla Mortgage Team can help you personally with your mortgage, Please email callateam@dominionlending.ca or call 604-802-3983 www.angelacalla.ca 

I am really grateful after over a decade of living my passion as a mortgage professional and educator, a wedding and 2 babies later to still be considered a Young Gun again. Its a pleasure to be along side with this Canada Wide list. A HUGE congratulations to my friends who made the list.‪#‎callateam‬   

Young Guns 2016

Once again, CMP’s annual Young Guns list offers an insightful glimpse into the industry as it stands today and what it may be in the future. While everyone featured on this list is under the age of 35, that doesn’t mean they’re lacking in experience – or, indeed, wisdom. Many of the brokers on this list have more than a decade in the mortgage business under their belts. As such, they have strong opinions on where the industry is headed and what changes need to be made to ensure the continued credibility and legitimacy of the mortgage business. 

Many of this year’s Young Guns work in the intense markets of Vancouver and Toronto, which continue to dominate the conversa-tion about real estate in Canada. Some believe talk of a bubble is economist scaremongering – and that it’s growing tiresome – while others take the view that the current growth cannot go on forever, so contingencies should be put in place. 

Another major talking point among this year’s selection was how important technology has become, particularly in regard to the different expectations of Baby Boomers, Gen Xers and millen-nials. The consensus is that being able to adapt is crucial to success in 2016, and harnessing the many tools of the digital era is what will separate those at the top of the industry from the rest. That said, the days of the face-to-face meeting and personal phone call aren’t quite over yet, and our Young Guns agree that these forms of communication are still necessary for developing solid relation-ships with clients. 

If the young shall inherit the earth, and these young mort-gage professionals shall inherit this particular business, then the industry is clearly in the best of hands. 

 

ANGELA CALLA
Mortgage professional
DOMINION LENDING CENTRES 
Age: 33

When discussing what attracted her to the mortgage business, Angela Calla is unequivocal about the need to find value for her clients as they make the biggest purchase of their lives. “I love saving people money for what matters in life – anything is better than interest!” she says. “It’s my passion. I want to continue to educate Canadians on how to get their mortgage working for them. With our help, bottom line, you will always save the most amount of money.”

Contact Information

• Website http://angelacalla.ca/
• Email acalla@dominionlending.ca
• Phone 604-802-3983 

 

Looking for a highly organised, motivated, quick learning, fast moving mortgage fulfilment specialist with excellent communication, and customer service skills with a desire to grow to join The Angela Calla Mortgage Team at DLC.

If you have worked in a busy compliance related industry, mortgage, finance, real estate, insurance, legal this could be a great fit.

Must type a min of 50 wpm, understand outlook, excel, and a quick learner with internal programs such as our DLC intranet, Fiologix, Otto, etc.

You will be required to either have a mortgage broker license or get it within 3 months of hire.

Your duties will include and will not be limited to: Customer Inquiries/Payment Modifications, Data Input, review of credit reports, qualification documents, reviewing uploading applications/paperwork, updating all systems, clients and associates with our current systems/processes.

You would be assisting with all paperwork, compliance, appointment , customer service, follow up tasks, marketing as delegated and initiated to execute the teams goals and see projects through.

This is a base salary plus bonus, commission and benefits from our Port Coquitlam office.

Extra hours outside of Monday to Friday 9-5pm will need to be accommodated when required for workflow and maintain our Customer Service Expectations. Please email your resume to acalla@dominionlending.ca 

When you are applying to get a new mortgage, you will be required to provide documentation. It’s important to understand, for compliance reasons, that all documents provided must be complete (all pages), unaltered and clearly legible.

One of these documents is a letter of employment. This is to be done on a company letterhead and must show your start date, occupation, salary/wage and guaranteed hours.

Lenders are looking for certainty.  If we see something on your letter that may not best position you, we will advise you immediately.

The person who wrote the letter will be called by the lender to verify the details, so it’s important that the person or someone with the same authority is available to take this call or call the lender back as soon as possible.

Most lenders require that Letters of Employment are not more than 30 days old when received by them.

Pay stubs are also required to support and confirm the letter.  As with all documents requested, they must be clear and legible.  If they are not prepared by a 3^rd party, then bank account statements may be required to show the pay deposits going into your account.

If you have multiple sources of income, then your T1 Generals may be required.  As with all documents requested, all of the pages must be included.  We recommend that your accountant sends us electronic copies of these via email. It’s common for the last 2 or 3 years to be requested, based on your personal scenario and qualifications.

An income tax Notice of Assessment is often required.  This is what you receive back from the CRA after you have filed your taxes.  You can also get this from your accountant (depending on how they filed your taxes) or online by signing up for your PIN on the CRA website. If you have a tax balance owing, a Statement of Account reflecting a $0.00 balance or other confirmation of payment will be required.  If you received a tax refund, then a bank statement showing the deposit of the return may be required to confirm authenticity.

Please keep in mind that all lenders reserve the right to ask for additional documentation at any time.  We will always try to anticipate their requirements and manage them carefully in order to assist you. Everything required is requested by us at an appropriate time.   We provide a strategy that will result in the lowest cost of borrowing and we will work in an efficient manner to ensure the smoothest possible completion of your mortgage.

Angela Calla

DLC-Angela Calla Mortgage Team

604-802-3983 callateam@dominionlending.ca 

Shopping for a new home can be fun and exciting, but there are many details that contribute to a property’s marketability.

Mortgages that have the lowest total cost are reserved for the most marketable properties that are in prime locations as per the lender’s criteria.

Please remember that a mortgage professional can never advise a buyer to make any subject-free offers or even to remove the subjects on an offer.  The decision to remove subjects is one that the buyer has to make once all of the conditions for their mortgage approval have been satisfied with the lender(s).    Also remember that there cannot be any major changes to the borrower’s application details prior to the completion of their purchase as it may affect the borrower’s qualifications and change the conditions of the approval.

A mortgage professional will provide a buyer with the lowest cost and best mortgage for their scenario and for the property that they select to purchase.   This comes without limitations as we are without bias to any particular lenders and we protect a buyer’s credit score, which is another contributing factor to the best mortgage.

Here are some of the property details that can affect a lender’s decision on whether or not they approve a mortgage:

Property Zoning- if the zoning is anything other than plain residential then your options will be limited.  This sounds simple.  However, some condos are zoned commercial if there is a large commercial component to the complex. Industrial, Agricultural Land Reserve (ALR), or leasehold (government or otherwise) will limit a buyer’s options.

Strata Property                              House

Cable Cord Construction              Oil Tank(s) on the property

Self-Managed Stratas (no strata management company)

Size of the property- below 500 sq. feet

Doesn’t use Municipal Sewage Or Waste

Former Grow Op                           Former Marijuana Grow Op or used for illegal activity

Outdated Electrical                         Over 1 Acre and/or Multiple buildings

Age Restriction(s)                          Any animal use

Rental Usage                                Any structural issues/damages work done without permits

Ongoing or Upcoming Assessments or Legal Proceedings

Prior fixes in the building not done to the lender’s preference

Contingency fund with less than $1500 per unit in the entire Strata

The lender always reviews the details of each property only when an accepted offer is in place.  The request for information can be a simple document or it can require an explanation/written documentation from various parties.   This information may go back several years in order to get to the source of the issue.   This, of course, takes more time.

With complexities such as these, it’s important that a real estate agent discloses the information to their buyer right away so that it can be brought to the lender’s attention.    The agent should also be proactive in getting any and all documentation pertaining to the building/property so that the buyer can evaluate if a property has long term value to them.    Many of the issues stated above can affect the long term value and marketability of a property.

As a mortgage professional, we share any and all information that the lender provides to us if they decide not to approve a property that is being purchased.   We care about protecting borrowers from a bad real estate investment and are without bias in the advice that we provide.

We are always here to help,

Angela Calla

Mortgage Expert

Dominion Lending Centres

T: 604-802-3983

E: callateam@dominionlending.ca

W: www.angelacalla.ca