Some interesting points in this Financial Post article:

• 36% of BMO high net work clients surveyed own a least one second property worth $708,539
• many of those people are tapping into equity in their primary residence to fund those additional property purchases
• most of these folks leverage their property and invest the money

As was widely expected, the Bank of Canada left overnight rates unchanged at 0.75 percent and reiterated earlier comments about the likely trajectory of the Canadian economy. The Bank is more optimistic about the economy than private sector forecasters, believing that a rebounding U.S. and global economy will spur Canadian business investment and exports in coming months.

Read more HERE

• Book that vacation sooner rather than later. Camping sites seem to book up faster than ever each year.
• Most homeowner insurance policies require that you ensure somebody is checking in on your home a minimum of once per week during your absence. Ideally there an alarm monitoring record of somebody attending the property. If not then at the very least keep a record of email exchanges confirming that your property was viewed at a certain time and date. Perhaps even with a snapshot of the utility room in particular sent your way. A burst hot water tank or even a leaking pipe left unattended for days or weeks on end can result in a denied insurance claim.

With that handled, go and enjoy the great outdoors and make the most of the summer of 2015!

Want to ensure you have the best mortgage? The Angela Calla Mortgage Team can help you directly at 604-802-3983 or callateam@dominionlending.ca. Contact us today!

In a headline that runs contrary to the more inflammatory and regular warnings seen in mainstream media, the Fraser Institute released a report on May 20th titled ‘Concern about Canadian household debt levels overblown when assets, other measures taken into account’.

It cited such key statistics as the growth of assets owned by Canadian households to a current total of $10 Trillion, with household debt growing at a much slower rate to $1.8 Trillion.

In other words, for every $10.00 of assets we own, we owe just $1.80. Hardly a fear-inducing ratio.

As far as the apparent desire of the media to link Canadian household debt data to that of the United States household debt data prior to the U.S. Real Estate meltdown, the Fraser Institute’s report cites the key systemic differences in the two countries lending policies. Namely, the inherent stability of the Canadian structure.

The bottom line is that appreciation of assets is outpacing quite handily the rate at which Canadian consumers are taking on new debt and when measured against our current assets we are clearly in a stronger position than many might otherwise realize.

The Angela Calla Mortgage Team gives you clarity on the best mortgage by being transparent, unbiased free mortgage advise with choice. We are here to help you personally with your mortgage at 604-802-3983 or callateam@dominionlending.ca

Going through the pre-approval process is more important than ever to both you and your Realtor, but the actual term ‘pre-approval’ is potentially misleading.

You may be pre-approved for a certain mortgage amount, however there are still a number of variables that can enter the picture once an offer is accepted. That’s why it is imperative that one always include a clause in the offer along the lines of ‘subject to receiving and approving financing’. (There are variations to be discussed around the specific wording.)

Often clients are reluctant to write the initial offer on a property without feeling like they are 100% pre-approved.

An understandable desire. The risk, though, is that some may falsely believe that they have a guarantee of financing. They don’t.

A lender must review all related documents – not just those of the clients, but also those from the appraiser and the Realtor – as the property itself must meet certain standards and guidelines.

The pre-approval process should be considered a pre-screening – a first step only.

It does involve review and analysis of the client’s current credit report; it should also include a list for the client of all documents that will be required in the event that an offer is written and accepted. Clients should also come away from this initial process with a clear understanding of the maximum mortgage amount they qualify for, along with the various related costs involved in their specific real estate transaction. Equally important: with the completed application your broker is able to lock in rates for up to 120 days.

Why won’t a lender fully review and underwrite a pre-approval?

• Lenders do not have the staff resources to review ‘maybe’ applications – they have a hard enough time keeping up with ‘live’ transactions.
• The job you have today may well not be the job you have by the time you write your offer.

Thanks to all of you, Angela Calla is proud to be

Why Are Bond Yields Rising? Will Mortgage Rates Follow?

Bond markets have tanked in the past several weeks, driving yields upward. Hundreds of billions of dollars have been wiped out in global bond markets. Ten-year government bond yields in Canada have risen 50 basis points (bps) in the past month as Treasury yields have jumped 32 bps. The rate increases in sovereign European bonds have been even greater, up roughly 60 bps for core Europe, albeit from extremely low levels. At today’s postings, 10-year Government of Canada bonds (GOCs) yields are at about 1.80% while 10-year Treasuries are at 2.24%.

In contrast, shorter-term yields are little changed. Yields on bonds worldwide coming due in one to three years -- those most tied to interest-rate expectations -- have remained little changed. Basically, fixed-income investors are signaling that they don’t expect central banks to begin hiking rates anytime soon. Indeed, JPMorgan Chase & Co. added to economic pessimism yesterday by revising down its estimate of U.S. Q2 growth to 2% from an earlier 2.5% on the heels of weaker-than-expected retail sales data.

This comes a month before the Fed’s next meeting where policy makers will resume their debate over whether the economy is robust enough to warrant the first interest-rate hike since 2008. I don’t expect the Fed to raise rates in June and even a September rate hike is in question. So why are longer-term bond yields rising?

Bond markets were overbought earlier this year with widespread economic pessimism, especially in Europe, and ongoing deflation fears. In recent weeks, however, oil prices have rebounded with West Texas Intermediate (WTI) crude, the U.S. benchmark, climbing more than $17 a barrel from a six-year low of $43.46 on March 17. WTI is currently hovering around $60.00 a barrel. This rise in oil prices has dissipated fears of widespread deflation.

Euro pessimism has also diminished. After spending the end of last year slashing 2015 growth forecasts for the euro zone, economists are raising estimates again. As recently as February economists were calling for the euro zone to grow 1.1% this year. Now they've raised their median forecast to 1.4%, according to a Bloomberg survey.

Overbought positions have corrected. Data from the Commodity Futures Trading Commission show investors started 2015 with the biggest bet on U.S. government bonds in seven years. By the end of the first quarter, more than half that position was gone.

Will Higher Bond Yields Lead to Higher Mortgage Rates in Canada?

Probably not, at least for variable mortgage rates, even though interest rate spreads at financial institutions have been further squeezed. This has been one of the most competitive spring mortgage markets in years. Fixed mortgage rates could rise roughly 30 basis points if bond yields rise further. But today’s release of negative producer prices in the U.S. and disappointing retail sales suggest that further rate hikes will be muted.

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

View this great video from the Globe & Mail   “How much does it cost to break a mortgage?”

Questions on determining the best mortgage for you and your future? The Angela Calla Mortgage Team is here to help call us at 604-802-3983 or callateam@dominionlending.ca We look forward to helping you.

As a mortgage professional, I know that there is more to the perfect mortgage than a low rate. It seems the Toronto Star has also figured it out in their article “Bargain-basement mortgage rate may not be what you want” and they correctly point out, brokers can help consumers make an informed choice.

“Brokers say the push for low rates is not a bad thing, but it has led to some confusion. While mortgage contracts used to be fairly standardized, many of them now contain various conditions and clauses, and in some cases it’s hard for consumers to decipher the difference between various products.”

Questions on determining the best mortgage for you and your future? The Angela Calla Mortgage Team is here to help call us at 604-802-3983 or callateam@dominionlending.ca We look forward to helping you.

Principal Residence home equity & sale proceeds along with TFSA’s are the only tax free investments.

Higher TFSA limits might mean some people will stop overreaching on home purchases as a way to stash cash, knowing they’ve got another tax-free haven for their money.

Click HERE to view the full Financial Post article

Here’s a question for all those people against increasing contribution levels to tax-free savings accounts: What about all the people who never plan to own a home?

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