Thinking of giving your landlord  a notice? Test drive a mortgage payment #callateam read & share

In both rising markets and softer markets there will be many people contemplating making a move to a larger home and with that larger home often comes a larger mortgage. Last month’s newsletter offered technical tips to help prepare for the process of porting your mortgage to a new property, this month we will talk about preparing for a payment increase in advance.

We test drive cars before we buy, we try on clothes before we buy, we even sample wines or beers before we commit. Yet when it comes to taking on a mortgage payment, or increasing our mortgage size, and thus payment, few of us take the new monthly payment around the block. Instead, we are often so caught up on other aspects of the process that 30 days after moving in when that first payment is withdrawn, there can be a degree of post-closing payment shock.

Knowing your numbers in advance is one thing – living with the numbers in advance is another.

Here is a table for quick calculations of the possible increase in mortgage amount you may be considering:

*Based on a 2.69% 5yr fixed rate amortised over 25yrs.

The key to this is not simply doing the math and knowing what you future payments will be for the next 25 years. The key is to actually increase your current mortgage (via your prepayment privleges) by the corresponding amount so that you are making that new payment for a few months prior to taking action. Alternatively, you might choose to withdraw an amount equal to the proposed increase from your account and stash it in a ‘safe‘ place like a savings account, an actual safe, or a parents care. The key is to start replicating that new payment and confirm you can live with it prior to actually taking it on.

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

Can you trust your financial adviser? Ask these 3 questions to find out:

Click Here to read the full article

How people are compensated and what long term plan they have for you are the most important fundamentals to your long term success. To get the best mortgage plan and get an ongoing mortgage plan- contact us personally to help you 604-802-3983 callateam@dominionlending.ca

Buyers have choice & power.
Buyers should walk away from bidding wars, and say they will only consider an offer if the first one does not go through so they don’t participate in inflating the market.
Removing the emotion is key, and having a strategic plan with a realtor of integrity is fundamental in this plan one that helps you understand the importance of the due diligence process.
I feel sorry when borrowers take pride in getting an accepted offer when they paid the highest price with no subjects because anyone could do that. Our experience shows that the long term value hasn’t performed as they hoped, 2007/2008 being an example of this. If money and long term value is of no importance to them due to substantial wealth of course that’s the exception to the equation.

48% of first-time homebuyers in Canada ready to enter a bidding war, says BMO survey:http://t.co/XHrQ1EIe9A #cndre

At The Angela Calla Mortgage Team, we are here to help you ensure you have a well thought out mortgage plan. One allowing for change with the market and your life stages, to save you the most amount of money with unbiased, transparent free advise. To have us help you personally, like we did for Jenna & Luke http://ow.ly/MCDFp  call 604-802-3983 or callateam@dominionlending.ca

BC Living highlights the top five reasons to do so NOW

Here are the five reasons: the prime rate has dropped; first-time home buyers have an advantage; seller’s market means plenty of options; a timely renewal could save you BIG money; and lenders are competing for your attention.

Find the full article here

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.

RBC will start charging customers fees to pay their mortgage, reports @CBCNews

Banking fees are going up at all of Canada’s five big banks, but some customers of RBC in particular are outraged about the changes. They’re accusing Canada’s biggest bank of targeting children and those who can least afford 

Read the entire artivle HERE
or view the Fee Details 

Angela Calla, AMP
Dominion Lending Centres-Angela Calla
Host of ” The Mortgage Show” Saturdays @ 7pm on CKNW AM980
Phone : 604-802-3983 Fax: 604-939-8795
Email: acalla@dominionlending.ca
www.angelacalla.ca

According to the Financial Post, they want you to forget gold and buy a Vancouver condo if you want to stash your wealth!

“Gold has lost its lustre…The two greatest stores of wealth internationally today is contemporary art….. and I don’t mean that as a joke, I mean that as a serious asset class,” said Laurence D. Fink,chairman of BlackRock Inc. “And two, the other store of wealth today is apartments in Manhattan, apartments in Vancouver, in London.”

Read the entire article HERE

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 orcallateam@dominionlending.ca

Be prepared to have more limited #mortgage options if you fall into the 5-plus property category

Click HERE to read the Business Vancouver article

Angela Calla, AMP
Dominion Lending Centres-Angela Calla
Host of ” The Mortgage Show” Saturdays @ 7pm on CKNW AM980
Phone : 604-802-3983 Fax: 604-939-8795
Email: acalla@dominionlending.ca
www.angelacalla.ca

The following changes below break down to 3 things being clarified

1.       No cashback mortgages anymore

2.       Harmonized qualifying between lenders- less applicants will qualify for the variable rate mortgage, it remains a luxury.

3.       Letters of Employment will continue to always be required (no real news here)

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

April 27, 2015 

Subject: Homeowner Policy Modifications Relating to B-21 Guidelines 

In line with the industry focus on risk management, the OSFI B-21 Guidelines, and responsible diligent lending practices, CMHC is implementing policy modifications for homeowner 1-4 unit properties and providing greater clarification on the requirements surrounding the verification of the borrower’s income and employment. 

§        CMHC is harmonizing its policies with respect to the qualifying interest rates used for low ratio and high ratio loans submitted for mortgage loan insurance. Whether the loan is high or low ratio, qualifying interest rate for all variable rate mortgages regardless of the term, and fixed rate mortgages with a term less than five years, will be the greater of the contractual mortgage interest rate or the five-year benchmark interest rate. For fixed rate mortgages, where the term is 5 years or more, the qualifying interest rate is the contract interest rate. 
§        In line with industry efforts to encourage borrowers to save for homeownership, lender cash backs will no longer be considered as an eligible non-traditional source of down payment to satisfy minimum equity requirements. 
§        To add clarity and ensure increased consistency in how its policy is interpreted and applied, CMHC is modifying its policy with respect to the verification of the borrower’s income and employment. The policy will now state that lenders must obtain third party verification of the underlying income for all borrowers including substantiation of employment status and income history. 

The effective date to comply with the modifications and clarification outlined above is June 30, 2015. CMHC recognizes that the policy change related to qualifying interest rates for transactional low ratio loans may generate system impacts for some Approved Lenders. For this reason, CMHC is allowing for flexibility in implementing this change. Approved Lenders are expected to implement the change as early as possible and no later than December 31, 2015. 

Attached you will find a document covering common operational questions and answers surrounding this announcement. 

Please feel free to contact me if you have any questions.