Premier Christy Clark and Minister Responsible for Housing, Rich Coleman announced on the 15th of December that the B.C. Home Owner Mortgage and Equity Partnership program will initiate a bold, innovative new program for helping first time home buyers afford the homes they desire.

We’ve reached out to our friend Angela Calla, expert mortgage broker and leader of the Angela Calla Mortgage Team, for an analysis of this new program, for an explanation of the requirements and for a prediction on the outcome. Her insights below are likely to bring clarity to the issue.

Full Article here: http://www.point2homes.com/news/canada-real-estate/new-opportunity-bc-first-time-home-buyers.html 

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 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 604-802-3983 

The Angela Calla Mortgage Team saved Margaret of Surrey and her husband $3000.00 per month by restructuring her mortgage at renewal. Her mortgage was up for renewal at the bank where they encouraged her just to renew directly, however it did not address her current life stage of her outside debt including credit cards and lines of credit that have been accumulated due to helping her adult children with school, and now there businesses.

Thank goodness she did not renew directly with the bank. That costly mistake would have costed her $36,000.00 per year where now she is saving that money by contacting The Angela Calla Mortgage Team. Feeling discouraged she happed to tune into The Mortgage Show one day while she was cleaning the house and decided to give us a call.

We were able to consolidate her outside debts not only saving her $3000.00 per month but helping her save money each month and pay down her mortgage at a highly accelerated rate. She had used a mortgage broker before but they had never reached out to her to help her with renewal. As a result of her contacting us we quickly helped her with the new mortgage and she will now be a part of our mortgage management program included with every mortgage we do so we will review her mortgage every year to ensure she has the best mortgage at all times. Hear her share her story live

Here is Margaret’s interview …

https://soundcloud.com/cknw/margaret-interview-121516-edit

Contact The Angela Calla Mortgage Team directly to help you with your mortgage or someone you care about at callateam@dominionlending.ca or 604-802-3983 

Announced today by Premier Christy Clark and Minister Responsible for Housing, Rich Coleman, ‘the B.C. Home Owner Mortgage and Equity Partnership program contributes to the amount first-time homebuyers have already saved for their down payment, providing up to $37,500, or up to 5% of the purchase price, with a 25-year loan that is interest-free and payment-free for the first five years. Through the program, the Province is investing about $703 million over the next three years to help an estimated 42,000 B.C. households enter the market for the first time.’

This program not only helps first-time home buyers enter the market, but it can also help them save on interest by providing buyers with a larger down payment than they already have. The Province will contribute towards the buyers’ contributions up to five per cent of the home purchase price, meaning first-time buyers can exceed the minimum down payment required by the Canada Mortgage and Housing Corporation.

For example, a home valued at $750,000 requires a minimum down payment of $50,000. With contributions from this program, a first-time homebuyer can put $90,000 down and, assuming a three per cent interest rate, will save approximately $5,200 in interest during the first five years.

In a move to help BC citizens and residents buy their first home, the BC government announced today that it is launching a new program to augment down payments for first-time buyers. The B.C. Home Owner Mortgage and Equity Partnership program contributes to the amount first-time homebuyers have already saved for their down payment, providing up to $37,500, or up to 5% of the purchase price, with a 25-year loan that is interest-free and payment-free for the first five years. Through the program, the Province is investing about $703 million over the next three years to help an estimated 42,000 B.C. households enter the market for the first time. For more examples view here: http://www.angelacalla.ca/blog_post?id=18426

During the first five years, no monthly interest or principal payments are required as long as the home remains the homebuyer’s principal residence. After the first five years, homebuyers begin making monthly payments at current interest rates. Homebuyers will repay the loan over the remaining 20 years, but may make extra payments or repay it in full at any time without penalty. The loan must be repaid in full when the home is sold or transferred to another owner.

To be eligible, buyers must be preapproved for an insured high-ratio first mortgage (mortgage down payment is less than 20% of the home price). On completion of the sale, program funds will be advanced and the loan will be registered as a second mortgage on the property’s title.1Íž

Applications will be accepted starting January 16, 2017. This will be a three-year program with loans advanced from February 15, 2017 until March 31, 2020. https://news.gov.bc.ca/files/Housing_Campaign_HOME.pdf (this is a PDF of the process)

Eligible homebuyers

All individuals with a registered interest on title must reside in the home and:

•             Be a first-time homebuyer

•             Have been a Canadian citizen or permanent resident for at least five years

•             Have resided in BC for at least 12 months

•             Have a combined gross income of $150,000 or less

•             Have saved at least half of the minimum down payment they will require

•             Must be pre-approved for the first mortgage before applying

The first mortgage must be high-ratio insured from an NHA approved lender for more than 80% of the purchase price.

Eligible Properties

Any legal, self-contained, mortgageable residence located in BC

•             Must be used as a principal residence for the first 5 years

•             Rental properties and seasonal or recreational properties are not eligible

•             The purchase price cannot exceed $750,000

Home Partnership Loans

•             Up to 25-year term, registered as a second mortgage

•             No interest or principal payments for the first 5 years

•             Monthly principal and interest payments begin in year 6, amortized over remaining 20 years

•             Interest rate for years 6 to 10 set near first mortgage rate at time mortgage is registered

•             Interest rate reset to near first mortgage rate at years 10, 15, and 20

•             Homeowner may repay in full or part at any time without penalty.

The loan is due and payable in full upon

•             The home ceasing to be the primary resident in the first 5 years

•             Default on the first mortgage

•             Sale of home or change of ownership

•             Any other default on the Home Partnership second mortgage

Bottom Line: This is a bold and innovative step to help potential new buyers to meet the greatest hurdle of first-time homeownership—the down payment. The Federal Government’s new mortgage regulations released in October hit first-time homebuyers hard, so this program will be welcome relief for B.C. residents. The B.C. government estimates that it will make more than 42,000 new loans over the three-year life of this program, amounting to $703 million in new funding available for qualified first-time homebuyers to come up with their down payments. This is particularly important for BC, which has the highest home prices in Canada.

Items of note:

Although this program is available, some homeowners may choose not to take it, as it is a loan that does have to be paid back, and we will not know what that rate of interest will be at the time of repayment.

With it being registered as a second mortgage no other loans can be registered against the property.

This does not address the supply issue and if anything will drive prices higher.

This is our taxpayers money that is being used to fund this.

The mortgage insurers (CMHC, Genworth and Canada Guarentee) have yet to comment on the program 

The Angela Calla Mortgage Team is here to help you personally with clarity on any mortgage related matter, contact us at callateam@dominionlending.ca 604-802-3983

Angela Calla, AMP

Dominion Lending Centres-Angela Calla Mortgage Team

Host of The Mortgage Show Saturdays at 7pm on CKNW AM980

Phone: 604-802-3983 Fax: 604-939-8795

“An introduction to someone you care about is a big responsibility…it’s also the biggest compliment a client can give us & it’s not taken lightly. We pledge to treat everyone that is referred to us with the utmost respect & professionalism”.

www.angelacalla.ca

Reach my Team Johnny Hsu & Dave Holmes at 604-939-8777 & callateam2@dominionlending.ca

Sean is self employed like so many people here in the lower mainland, and when it came to buying his 1st home for him and his new wife while they were expecting their first baby, they went to there bank which they learned was the biggest mistake they could have made. They happened to tune into The Mortgage Show on CKNW while he had dropped his wife off at home and was eating sushi in the car, and then with our assistance was able to buy his first hame & 8 years and 2 babies later we helped him optimize the mortgage market by restructuring his mortgage early to save an additional $800 per month and secure a better rate longer in this ever changing mortgage market. Had we not had the opportunity to help Sean and his family, they would not be homeowners or had the opportunity to future better there future financially with their growing family. We are grateful to help, and you can hear Sean’s interview directly which aired on a past episode.

https://soundcloud.com/cknw/tms-interview-sean-120117

Who do you know that you would want to get the best mortgage to help them have the best financial future? For any purchase and mortgage question, contact The Angela Calla Mortgage Team directly to help you as we have our existing clients at callateam@dominionlending.ca or 604-802-3893 

Hear how we helped Micheal of #portcoquitlam save over $1500.00 a month by redoing his mortgage ealry on his townhouse.

Now feeling relieved from the financial burden of outside debts he is a newly engaged man! With the new mortgage he is gaining more equity quicker into his townhome so he can move with his bride to be in a bigger home, so there is room for all the babies they plan to have, and oh yeah–plan a wedding! 

https://soundcloud.com/cknw/michael-interview-tms-112416-edit 

Who do you know that is wondering, can I save money on my mortgage? Please introduce us in an email to callateam@dominionlending.ca to see how and if we can help! Our service is free. #wehaveamortgagefor that 

Angela Calla

Dominion Lending Centres 604-802-3983 

calla@dominionlending.ca 

Ella & Paul of surrey are two hardworking parents, long time listeners of The Motgage Show Saturdays at 7pm, on CKNW, so when there mortgage was coming up for renewal, they came directly to us.

We helped them avoid costly mistakes, and ensure they are on the best path possible after dealing with helping family family financially. They learned through experience before coming to us that dealing with any lender without our help cost them money, time and stress, which thankfuly is a part of thier past now!

Now saving an amazing $3,500.00 per month.nThis will change their lives significantly and provide a future for them that they couldn’t imagone before they contacted The Angela Calla Mortgage Team. Listen to the full interview here: 

https://soundcloud.com/cknw/tms-interview-ella-112416-edit

Who do you know coming up for mortgage renewal in the next year? Does anyone you care about have a renewal coming up and want to ensure they can get the most out of it to live thier best life possible? Please introduce us in an email to callateam@dominionlending.ca and we will get to work to save you and them as much money as possible. #wehaveamortgageforthat 

Angela Calla 

Dominion Lending Centres 

604-802-3983 callateam@dominionlending.ca 

Who do you know considering separating from there spouse but feel trapped about not being able to be able to keep their home?

Listen to how Angela Calla Mortgage Team  helped Sandra of #Coquitlam keep her family home & how we helped her ex husband purchase a home close by so they can co parent easier. Thank Goodness they called #callateam as their bank told then they would have to sell #disasteravoided #wehaveamortgageforthat .

Please share & contact us directly at callateam@dominionlending for us to help you or someone important to you going through this life transition https://soundcloud.com/cknw/interview-sandra 

Angela Calla, AMP

DLC- Angela Calla

Host of The Mortgage Show Saturdays @7pm at CKNW 

Included below is a recent segment for Global BC that discusses the most common following questions

What to do if you have a Variable or Fixed Mortgage

The Bank of Canada did not raise prime, only TD raised there personal bank prime that results in taking more money from its existing customers, no other lender to date has done this. Mortgage professionals consider this when making a reccomendation for borrowers on lenders.

Trump, the bond market and increased costs for lenders causing rate increases for fixed rates

How to take advantage of these opportunities & what will be required to evaluation your options.

If you are renting and want to buy, what you should do.

How a proactive mortgage professional helps you other than rate with their personal lender & market experience. 

The Angela Calla Mortgage Team is here to help you and those you care most about personally. Contact us directly at callateam@dominionlending.ca or 604-802-3983

Many of us have had life experiences in which we have accumulated debt.   Maybe it was for a wedding, maturity leave, a sick relative, a slow patch in business, a lost job or job change, and sometimes all of these can even happen all at once!   It can feel like a crushing weight on your life and something that you can’t get out of when you have so many payments to make, including a mortgage, car loan, credit cards and lines of credit.

6 out of 10 Canadians are living paycheque to paycheque, so the feeling of being “stretched” is quite common. If you own a home, you may have an opportunity to completely change your situation for the better with a simple restructure of your finances.

Something to consider:  

Mortgage of $400,000.00 2.99% for $1,895.00/month,

$25,000 line of credit at 3.2% for $67.00/month (interest only),

$30,000 Car loan at 0% for $600/month,

$20,000 Credit card at 19% for $400/month,

$15,000 Credit card at 11% for $300/month,

$30,000 Student loan for $700/month.   The Total Monthly Payments Combined are at $ 3,962.00.  

Why not consolidate all of these debts into a low rate mortgage?  The New Monthly Mortgage Payment would be $2,466.00!   THAT’S SAVINGS OF $1,496.00 EACH MONTH!!!

*this is the net benefit after mortgage penalty and new closing costs and is subject to final approval by a lender*.

You might be thinking, “Why would I consolidate a loan that has a 0.00% interest rate?”.

It would be to improve your cash flow so that you can save money every month and cancel the cycle of getting into higher interest rate debt.

If you’re saving $1,496.00 per month, you can put money aside AND pay down your one debt faster (the mortgage), therefore creating a more flexible budget moving forward.

Do you, or someone you care about, want to see if this is a good option?  Our service is free! It’s as easy as calling 604-802-3983 or emailing us callateam@dominionlending.ca  so we can evaluate your options, which would involve a brief conversation and some documentation to confirm that you qualify for a restructure of your finances.

Angela Calla, AMP

DLC-Angela Calla

www.angelacalla.ca