How To Give Your Kids a Living Inheritance

General Angela Calla 14 Mar

One of the main ways a Reverse Mortgage is used to create family legacy is through a living inheritance, which the recipient often uses for a down payment. Parents can pass along their wealth now, when their kids need it most and without impacting their cashflow in retirement.

 

Living Inheritance – Gifted Down Payment

A living inheritance is a great way to grow generational wealth. When the adult children use the funds to enter the housing market, the extended family now has two properties appreciating in the Lower Mainland instead of one.

Traditionally, clients who want to help their children while still alive have requested a withdrawal through their financial planner. This assumes that those clients have enough saved to provide the gift to their children and still maintain their standard of living for the rest of their retirement years. And obviously, for clients who hold the majority of their wealth in their property, this isn’t an option.

Even for those clients who do have sufficient investments to facilitate a gift of that size, using a reverse mortgage for the living inheritance means parents can gift the funds with:

  • no impact to their monthly cashflow
  • no capital gains or income tax trigger
  • no depreciation of investments
  • no pension claw back

Not only are the parents investments left untouched and continuing to grow, the family now has two properties growing in value.

A note about living inheritance… the title insurers have been requesting additional documentation on living inheritance files. The title insurers may ask for a copy of the will and confirmation of how many children are in the family.

 

Recent Client Story – Gifted Down Payment

Charles (80) and Donna (74) have a $2.8M clear title home in Vancouver. They want to help their grandchildren purchase their first home. They spoke to their financial planner about withdrawing the money from their investments but, given the tax implications, she referred them to her mortgage broker instead.

CHIP approved loan amount: $1,148,500

They advanced $600,000 and gifted their granddaughters $300,000 each to use as a down payment. They were able to help their grandkids purchase a home without affecting their own lifestyle, without incurring an additional tax burden and their investments are still continuing to grow in value.

 

Living Inheritance PDF  

In another example this week, we have a great pdf (HEB_WealthCaseStudy_Mike_FINAL and Reverse Mortgage Financial Illustration Mike) from our investment division that compares gifting funds from investments vs gifting funds through a reverse mortgage. This illustration shows that when the reverse mortgage is are used, adequate cashflow is maintained through retirement whereas gifting from investments leads to a shortfall later in retirement. This can includes a financial projection that shows net equity in the home is maintained throughout retirement as well.

 

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

Exploring Financial Options: Reverse Mortgages vs. Lines of Credit

General Angela Calla 14 Mar

As a top mortgage professional, I understand the importance of providing unbiased advice to consumers, helping them navigate through the plethora of financial options available. Today, I want to shed light on two popular choices: Reverse Mortgages and Lines of Credit.

 

Reverse Mortgages:

A reverse mortgage is a unique financial product designed specifically for homeowners who are 55 years or older. It allows individuals to convert a portion of their home equity into cash without having to sell their home or make monthly mortgage payments. The loan is repaid when the homeowner moves out of the home or passes away, typically through the sale of the property. No income qualification is required for this product, it is based on age and equity in the property.

Reverse mortgages can provide financial flexibility for retirees, allowing them to supplement their income, cover unexpected expenses, or fund home renovations. Additionally, they offer the peace of mind of being able to remain in the comfort of their own home while accessing the equity they’ve built up over the years being a non taxable event.

 

Lines of Credit:

On the other hand, lines of credit offer a more traditional approach to accessing funds. They provide borrowers with a revolving credit limit that can be used for various purposes, such as home renovations, debt consolidation, or emergency expenses. Unlike reverse mortgages, lines of credit require regular payments of interest and principal, and the client must qualify based on there income and debts with todays stress test at over 9% interest rate.

 

Choosing the Right Option:

When deciding between a reverse mortgage and a line of credit, it’s essential for consumers to carefully evaluate their financial goals, needs, and circumstances. Each option has its advantages and disadvantages, and what works best for one individual may not be suitable for another.

To assist you in making an informed decision, I’ve prepared a comprehensive PDF guide specifically tailored for Canadians. This guide provides detailed information on both reverse mortgages and lines of credit, including eligibility requirements, pros and cons, and important considerations to keep in mind.

HELOCvsCHIPvsDownsizing_FINAL-031124-1

Conclusion:

We are committed to empowering consumers, I encourage you to review the PDF guide and explore all available options before making a decision. Whether you’re considering a reverse mortgage or a line of credit, it’s crucial to weigh the benefits and drawbacks carefully and choose the option that aligns with your financial goals and objectives. Contact us directly to review all of your suited options at 604-802-3983 or angela@countoncalla.ca

Remember, knowledge is power, and arming yourself with information is the first step towards achieving financial security and peace of mind.

 

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

Family legacy and normalizing using a reverse mortgage to build wealth for the family

General Angela Calla 8 Mar

Proactive Resizing

The average Canadian in retirement has a shortfall of $20,000 annually and an average of $200,000 saved. Many believe the smart retirement decision is to sell their larger home, buy a smaller condo and live off the difference. These clients don’t realize they could stay in the home they love, buy that condo now and have an income stream until they want to downsize.

Proactive resizing is the purchase of a property that clients will eventually move into when they sell their existing home. That property is often a condo but could be a townhouse or a one-level rancher.

The clients take a reverse mortgage on the existing primary residence to fund the purchase of the condo. If there’s enough equity in their primary residence, we do the deal based on the primary residence alone. If there isn’t enough equity in the primary residence we can do an inter-alia over the primary residence and the new condo. There is no mortgage payment so the rent collected only needs to service the strata fees, insurance and property taxes. All remaining rent – usually more than $2,000/month – becomes monthly income for the clients.

Not only are their investments left untouched and continue to grow, they now have two properties growing in value and a monthly income stream.

 

Recent Client Story – Proactive Resizing in Action

Steven (70) and Cynthia (70) have a free & clear home in Burnaby valued at $2.5M. They have a shortfall each month and were going to start drawing down their $300,000 investments. They knew they were going to downsize at some point but weren’t ready yet. They decided to purchase a condo that they would one day move into, but they were going to rent it out for the next 5-10 years.

Reverse Mortgage approved loan amount: $856,500

We could have done an inter-alia over their house and the new condo but they found a condo they loved for $800,000. Because they don’t have any mortgage payments, the rental income on the condo (after deducting property taxes, strata fees and insurance) nets them $2,000 per month, more than enough to cover their shortfall. Assuming both properties appreciate at a rate of 4%, the net worth of their 2 properties in 10 years exceeds $3.1M. They’ve also had the benefit of the additional $2,000 month for 10 years and their investments remain intact and growing.

 

Proactive Resizing Strategy Walkthrough

The proactive resizing strategy can be difficult to wrap your head around. Angela Calla Mortgage Team is happy to hop on call a to go through the example that can be used to illustrate the scenario.

 

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

No Recession In Canada, As Q4 GDP Growth Rose 1%

General Angela Calla 6 Mar

Still No Recession In Canada Thanks to Huge Influx of Immigrants

Real gross domestic product (GDP) rose a moderate 1.0% (seasonally adjusted annual rate), a tad better than expected and the Q3 contraction of -1.2% was revised to -0.5%. This leaves growth for 2023 at a moderate 1.1%. Monthly data, also released today by Statistics Canada, showed that December came in flat, well below the robust flash estimate, while the January preliminary estimate was a strong +0.4% (subject, of course, to revision). The January uptick was driven by the return of Quebec public servants and a mild winter.

The fourth quarter growth was fueled by higher oil exports and was moderated by a significant decline in business investment. Housing investment declined again in Q4–a sixth decline in the last seven quarters. Despite increased activity in Q4 new residential construction and renovations, it was more than offset by a large drop in home ownership transfer costs, reflecting the weakening resale market across Canada. Single-family units and apartments led the rise in new construction, as all provinces and territories, except Prince Edward Island, post a rise in housing starts.

Investment in non-residential structures fell sharply, as did spending on machinery and equipment, especially on aircraft and other transportation equipment. Even government spending declined.

Bottom Line

This is the last major economic release before the Bank of Canada meets again on March 6. The central bank will hold interest rates steady at next week’s meeting, and while some are suggesting the first rate cut this cycle will be as soon as the April confab, the consensus remains at June. With the uptick in growth in Q4, there is no urgency for the Bank to ease.

Policymakers will wait for their favourite core inflation measures to fall within the 1%-to-3% target band. They know that GDP per capita is falling and that mortgage renewals at higher interest rates will dampen household discretionary income. That’s why a June rate cut is widely expected.

(Article courtesy of Dr. Sherry Cooper, Chief Economist, DLC)

 

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

BoC Holds Rates Steady Waiting To See Further Declines In Core Inflation

General Angela Calla 6 Mar

The Bank of Canada Holds Rates Steady Until Core Inflation Falls Further

Today, the Bank of Canada held the overnight rate at 5% for the fifth consecutive meeting and pledged to continue normalizing the Bank’s balance sheet. Policymakers remain concerned about risks to the outlook for inflation. The latest data show that CPI inflation fell to 2.9% in January, but year-over-year and three-month measures of core inflation were in the 3% to 3.5% range. The Governing Council projects that inflation will remain around 3% over the first half of this year but also suggests that wage pressure may be diminishing. The likelihood is that inflation will slow more rapidly, allowing for a rate cut by mid-year. 

The Bank also noted that Q4 GDP growth came in stronger than expected at 1.0% but was well below potential growth, confirming excess supply in the economy.

Employment continues to rise more slowly than population growth. During the press conference, Governor Macklem said it was too early to consider lowering rates as more time is needed to ensure inflation falls towards the 2% target.

 

 

 

 

 

Bottom Line

The Bank of Canada expects that progress on inflation will be ‘gradual and uneven.’ “Today’s decision reflects the governing council’s assessment that a policy rate of 5% remains appropriate. It’s still too early to consider lowering the policy interest rate,” Macklem said in the prepared text of his opening statement. The Bank is pushing back on the idea that rate cuts are imminent.

High interest rates are dampening discretionary spending for households renewing mortgages at much higher monthly payments. As the economy slows in the first half of this year, the BoC will signal a shift towards easing. This could happen at the next meeting on April 10, when policymakers update their economic projections. This could prepare markets for a June rate cut.

“We don’t want to keep monetary policy this restrictive longer than we have to,” Macklem said. “But nor do we want to jeopardize the progress we’ve made in bringing down inflation.”

(Article courtesy of Dr. Sherry Cooper, Chief Economist, DLC)

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

Spring Market Update: Bank of Canada Holds Rates, Fixed Rates Drop, Optimism Ahead

General Angela Calla 6 Mar

As we step into the vibrant season of spring, it’s time for a quick update on the latest in the housing market and economic landscape.

Bank of Canada Maintains Rates:

In a recent announcement, the Bank of Canada has decided to maintain its key interest rate. For detailed insights, you can read the full report here.

Spring Market Buzz:

The arrival of spring has brought a flurry of activity in the housing market, with both sellers and buyers eager to make their moves. Fixed rates have seen a dip from their previous highs, sparking optimism among homeowners and prospective buyers alike. This drop in fixed rates has added an extra layer of excitement to the already bustling market.

Time-Sensitive Updates:

Also included on our social media @angelacallamortgageteam – give us a follow

First-Time Homebuyer Incentive:

Act fast! First-time homebuyers have a golden opportunity to save up to $8,000 if they have a purchase in place and can change to complete their purchase on or after April 1st 2024 if possible. Learn more about this time-sensitive offer here.  We have already viewed all of our existing clients with purchases in place to see who can benefit

Maximize Your Savings:

If you’re currently renting and dreaming of homeownership, don’t miss out on our blog post detailing how you can claim up to a $400 tax credit by filling out the form with your income tax filing. Check out the full details here.

Looking Ahead:

With fixed rates on the decline and optimism brewing about the possibility of even lower rates in the near future, it’s an exciting time for those considering entering the housing market. Additionally, with approximately 3 million mortgage renewals upcoming, it’s crucial not to settle for the wrong terms. Choosing the right mortgage terms can save you thousands and impact future cash flow.  If you or a loved one have a mortgage renewal upcoming, contact us directly to start planning today.

 

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

B.C. Renter’s Tax Credit

General Angela Calla 5 Mar

Are you getting prepared to do your income taxes? If you are a renter and make under $80,000 there is a tax credit waiting for you.

The nitty gritty is that if you make less than $60,000 you will get a $400 tax credit by filling out Form BC479 2023. This is the same form that you use for UCCB, UCCB, the Renovation Tax Credit for Seniors and Disabilities, training tax and renter’s tax credit.

If you (you being the entire family) make between $60,000 to $80,000 you will receive a reduced amount. Still, it is worth filling out a form!

Criteria are:

  • You occupied an eligible rental unit in BC under a tenancy agreement, license, sublease or similar arrangement for at least 6 one-month periods.
  • Rent was paid for the unit.
  • You are 19 year or older, a parent or cohabitating with a spouse or common law partner.

Eligible Rental units are house, apartment, condo, townhouse, basement suite, detached suite, carriage house, co-housing, dormitories, long-term care facility, shared housing (roommates), subsidized and employer-owned housing.

https://www2.gov.bc.ca/gov/content/taxes/income-taxes/personal/credits/renters-tax-credit

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

Changes in Property Transfer Tax expected April 1st

General Angela Calla 22 Feb

Property transfer tax exemptions

While the province is aiming a new tax at would-be speculators, it’s also unveiling a tax break for first-time homebuyers and rental housing developers.

As of April 1, 2024, the threshold for the exemption to the property transfer tax for first-time homebuyers is being lifted from properties costing half a million dollars to $835,000. Properties with a fair market value of under $500,000 will be completely tax-exempt.

Read the whole article here: B.C. Budget 2024: New house-flipping tax, help for first-time homebuyers | Globalnews.ca

 

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

Master Your Mortgage Renewal: 6 Ways to Navigate Your Renewal with Confidence

General Angela Calla 21 Feb

As the economic landscape continues to shift and evolve, mortgage renewals present both an opportunity and a challenge for homeowners. With inflation down and the possibility of reduced rates in prime this June, there’s never been a better time to take control of your mortgage renewal. With over 3 million renewals expected over the next 24 months, it’s essential to approach this process strategically. Here are six key strategies to help you master your mortgage renewal:

 

  1. Start The Conversation Early: The importance of beginning the renewal process early cannot be overstated. By initiating discussions well in advance of your renewal date, you’ll have the opportunity to explore all available options without the pressure of a looming deadline. This extra time allows for thorough consideration of various strategies and ensures that you can make an informed decision that aligns with your financial goals.

 

  1. Reevaluate Your Financial Goals: Life is dynamic, and your financial goals may evolve over time. Your mortgage should adapt to support these changing objectives. Take the time to reassess your financial priorities and discuss them with your mortgage advisor. Whether you’re looking to pay off your mortgage sooner, access equity for other investments, or reduce your monthly payments, there may be mortgage products and strategies that can help you achieve your goals more effectively.

 

  1. Explore New Mortgage Products: The mortgage market is continually evolving, with new products and features designed to meet the diverse needs of homeowners. Investigate whether there are alternative mortgage products available that offer more flexible terms or improved cash flow options. Your mortgage advisor can provide insights into the latest offerings and help you determine whether switching to a different product could benefit you.

 

  1. Renewing vs. Switching: When approaching your mortgage renewal, it’s essential to evaluate whether renewing with your current lender or switching to a new provider is the best option for you. Consider factors such as penalties, benefits, and potential future opportunities. Your mortgage advisor can help you weigh these considerations and determine the most advantageous path forward.

 

  1. Understanding Interest Rate Trends: Interest rates play a significant role in determining your mortgage payments and equity. Stay informed about current interest rate trends and forecasts, as they can influence the cost of borrowing over the long term. Your mortgage advisor can provide valuable insights into interest rate movements and help you assess the potential impact on your mortgage renewal decision.

 

  1. Tailored Advice: There is no one-size-fits-all solution when it comes to mortgages. Your mortgage strategy should be tailored to your specific life stage and long-term goals. By working with a knowledgeable advisor who understands your unique financial circumstances, you can develop a customized plan that aligns with your objectives and maximizes your financial well-being.

 

The Angela Calla Mortgage Team is committed to helping homeowners navigate their mortgage renewals with confidence. Our team of experienced advisors offers personalized guidance and proactive management to ensure that you make informed decisions that support your wealth-building goals. Whether you’re looking to optimize your mortgage terms, access equity, or explore new opportunities, we’re here to help you master your mortgage renewal and achieve financial success.

 

Don’t wait until your renewal deadline approaches – reach out to us today to start planning for your mortgage renewal and take control of your financial future. With our expertise and support, you can navigate this process with ease and confidence, knowing that you have a trusted partner by your side every step of the way.

 

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

Essential Tips to Avoid Common Mistakes When Buying a Presale Property in BC

General Angela Calla 25 Jan

As a valued member of our community, we want to ensure that you make informed decisions when it comes to purchasing presale properties in British Columbia. Buying a presale property can be an exciting investment opportunity, but it’s crucial to navigate the process wisely to avoid potential pitfalls. In this article, we’ll outline some common mistakes to steer clear of when entering the presale market in BC.

 

Neglecting Due Diligence:

One of the most significant mistakes buyers make is not conducting thorough research. Before committing to a presale property, investigate the developer’s reputation, project timeline, and financial stability. Verify their past projects, reviews, and track record to gain confidence in your investment. You absolutely need to use your own realtor (independent of the developer and its associates) speak with your mortgage broker, financial planner, and lawyer Consideration for what will happen and what the back up plan is in the event of

– income change

-relationship or health status change

-potential resale restrictions,

-where the deposit and closing costs are coming from, there cost and risk in value for when the closing date is or can be delayed.

Its essential to not only look at your personal life circumstances, but what you will do if the market changes and more money is demanded due to shift in market conditions or time for completion.

 

Ignoring Market Trends:

Keep a close eye on the current real estate market trends in BC. Failing to understand market conditions can lead to overpaying for a property or investing in an area that may not yield the expected returns. Consult with real estate experts, review market reports, and stay informed about economic factors influencing property values. The costliest mistake we see if clients going to a developer directly, who is biased to sell there product they are NOT there to give unbiased advise.

 

Underestimating Costs:

Presale prices may seem attractive, but it’s crucial to account for additional costs such as closing fees, GST, Property Transfer Tax,  Property Taxes, and Strata Fees. Ensure you have a comprehensive understanding of all associated costs to avoid financial surprises down the line.

 

Overlooking Contract Details:

The presale contract is a legally binding document, and overlooking its details can lead to complications. Pay close attention to clauses related to completion dates, potential delays, and warranty information. Consult with a legal professional to ensure you fully comprehend the terms and conditions. While the presale market is regulated by the provincial government, contracts for presales or preconstructed units are not. He also said they can be sticky to negotiate, and the wording is weighted in favour of developers. Not only can the developer refuse to consider an “assignment” option, it’s also not required to deliver exactly what the buyer saw in a showroom.

 

Ignoring the Fine Print:

Developers often provide disclosure statements outlining important information about the project. Ignoring these documents can result in misunderstandings or unmet expectations. Take the time to read and understand all the fine print, seeking clarification on any points that may seem unclear. “That’s why the Real Estate Development Marketing Act requires developers to provide a disclosure statement and gives purchasers the right to cancel presale contracts within the first seven days, so consumers have time to think through their decision

 

Skipping Inspections:

Even though you’re purchasing a property that hasn’t been built yet, it’s crucial to hire a qualified inspector to assess the developer’s reputation and the quality of their previous constructions. An inspection can reveal potential issues and help you make an informed decision.

 

Overlooking Financing Options:

Buyers sometimes make the mistake of not exploring various financing options. Shop around for mortgage options with a mortgage broker, consider pre-approval, and be aware of the potential impact of interest rate changes on your financial situation. Always ensure you have a worst case scenario back up plan.

 

Neglecting Resale Potential:

Consider the long-term prospects of the property, including its resale potential. A presale property should not only meet your current needs but also be a sound investment for the future. Evaluate the neighborhood’s growth potential and amenities that contribute to long-term value. .”  When a developer allows a contract to be re-assigned then a fee of one to three per cent of the sale price is usually charged to the original buyer and they remain legally liable to complete the purchase if the new buyer fails to do so.

By avoiding these common mistakes, you can approach the presale property market in BC with confidence and make decisions that align with your financial goals. If you have any questions or concerns, don’t hesitate to reach out to us directly for an introduction to experienced professionals to assist in guiding you through all aspects to ensure you understand the pros and cons tailored to your specific situation.

Happy house hunting!

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

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