RBC is the first to decrease it’s Bank Prime Rate, they did not do the full 25 basis points that the BOC did however it is still a savings to canadians. See the news release below. The other banks likley will follow stay tuned for details.

http://www.newswire.ca/en/story/1478189/rbc-royal-bank-decreases-prime-rate

For questions or pre approval regarding your mortgage, contact us directlty at 604-802-3983 or callateam@dominionlending.ca

Thank you

If you’re presently carrying debt outside of your mortgage, restructuring your existing debts into your mortgage may be the answer for you. Unsecured debt (credit cards and some lines of credit) hold a much higher interest rate, which will take a lot longer to pay off, and negatively impact your monthly cash flow. Following are some considerations to see if refinancing will be right for you. These are only guidelines – your AMP will be here to personally help you uncover the answers to any questions you may have, and work out the best solution for you.

1.  Equity – refinances in today’s market can go to 80%, pending your property’s value. Lenders have a few different tools for evaluating a property’s value, so using the power of an AMP who has access to multiple channels and lenders, will help you get the best valuation for your home.

2. Timing – in the next 3 months, will you be receiving proceeds from a work bonus, sale of an asset or inheritance? If the answer to any of these is no, refinancing may be a good consideration for you.

3. Cash flow – refinancing will have a HUGELY positive impact on your cash flow if it’s an option for you. The average line of credit payment on a $20k credit card can be anywhere from $100-$600 a month. Consolidating this debt into your mortgage will mean paying back $47 a month in principal and interest – a savings of $63-$553 a month. Most families heavily feel the burden of debt as there is no way they can work enough extra hours to earn that type of tax-free cash flow. If you’re earning $20/hour full time, in order to make an additional $300 a month, you would have to work a minimum of 40 extra hours each month – an extra 10 hours a week!

4. What type of mortgage did you initially take – does it have restrictive clauses or a high interest rate differential (IRD) penalty charge due to taking it directly from a bank branch? See the costly mistakes we can help you avoid:

http://www.angelacalla.ca/blog_post?id=9276

5. Plan for payback – with your improved cash flow, most families find it easier to put together a repayment plan that leads to becoming mortgage free faster, as they’re not bogged down by multiple payments at high interest rates.

The debt does not disappear when we redo your mortgage – it’s just restructured to give you an opportunity to get in front of it, and get your money working for you more efficiently in a more manageable fashion. Refinancing is one of the many benefits the security of homeownership may afford you in the event you find yourself like most Canadians with debt that’s difficult to pay off.

Angela Calla, Mortgage Expert, AMP of the Year in 2009 and Host of The Mortgage Show on CKNW Saturday’s at 7pm. One of the most influential people in the mortgage industry for her sheer volume of people she helps save money on their mortgage, contributions she makes by consulting with Canadian’s national & regional lenders, insurers and media contributions. She and her Port Coquitlam, Port Moody & Vancouver team are here to help you personally at 604-802-3983 or callateam@dominionlending.ca. 

1. How will this affect me?

For the average Variable Rate Mortgage (VRM) holder, this will reduce the interest you pay by approximately $13 per 100k. (if & when they decide to make a change)

2. Does this affect my secured line of credit?

If you have a line of credit, secured or unsecured, that floats with prime, whenever the banks follow the BOC by reducing prices your rate will be reduced. As most lines of credit have a small interest-only payment, most may not notice a difference.

3. Myth: This will allow me to qualify for more with my mortgage preapproval.

No. The qualifying rate to take a VRM is 4.79% – more than double the rate you pay. This ensures that you can afford future rate hikes. With that high of a qualifying rate, only those purchasing WELL below their budget qualify to take the luxury of a variable.

4. What do I do?

If you have a VRM, your existing lender will send you a letter (within a month) outlining the change (if/when they follow prime) and amend your payments accordingly.

5. What is the best way to optimize this change to my advantage?

Keep your payment where it is, and don’t reduce it if you already are not maximizing your payments to help pay your mortgage off faster. Consider this a gift to your financial future!

6. Why were lots of the major banks suggesting borrowers lock in their rate only a few days before the reduction in rates?

Simple – it makes them more money! Banks are very smart and great at releasing info that benefits their bottom line. Fixed rates are easier sells to investors, and banks can likely collect a large IRD if you need to make a future change.

Working with an AMP ensures you have access to unbiased, transparent advice to empower you with the knowledge to make the best decisions and experience the lowest cost of homeownership.

Questions on your mortgage or someone you care about? Call or email us today to help you personally.

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

With all the hype about real estate not being affordable, I’m here to tell you the opposite.

Averages don’t reflect the majority when you look into the real estate market I’m not saying that home ownership is an option for everyone, I will show you what is possible.

Let me break it down for you

To own a TOWNHOUSE in the Vancouver area’s or fraser valley there are currently 150 listing as of today’s date listed for 250k or below.

If you could do with a condo of course there are plenty more options for you.

Income:

You need to earn a gross before tax income of 42k per year (this works out to 20.19/hour full time, 40 hours per week) minimum Down payment:

You would need to come up with the required 5% down payment.  ($12,500) this could come from a gift from a family member, RRSP’s and of course whatever form of savings you can acquire. The down payment could not be borrowed.

Cost breakdown

In this example we used a 2.84% average fixed rate for 25 years, and the applicant would have no other monthly obligations There monthly payment for the mortgage would be $1140/ don’t forget strata $250 and property taxes (including heat) (we used an average for this so it will vary for each property) Total estimated cost being $1490 month.

If someone you care about is wondering what they can afford and how to put a plan together to do so, please introduce us by calling

604-802-3983 or email: callateam@dominionlending.ca and we will personally help review the options and have the lowest cost of home ownership!

The link to the townhouse examples is included here :

 REA Full Public

Good Morning,

Great news for clients on the variable rate mortgage, as prime was reduced to 3/4 of a percent from the current 1% . Should the banks choose to follow this adjustment (which is likely however doesn’t always follow suit) bank prime shall be reduced to 2.75% from 3% and you will see a small payment reduction generally within a month or so on your variable rate mortgage or line of credit. For a variable rate mortgage holder this could mean a reduction in the minimun payment due approx $13.00 per $100,000.00 carried in mortgage on average.

Our team anticipated a reduction and when advising clients about locking in with all the media reports as of late we told them to hold off, and for good reason as you can see. The benefit you receive when working with a professional that is on the consumers side.

Should you have any questions, require a rate hold for you or someone you care about, or ensure you have the mortgage to result in the most savings please email us today at acalla@dominionlending.ca or call 604-802-3983 for us to help personally. This morning’s press release is linked below, along with another article of note this morning

Have a good week.

http://www.bankofcanada.ca/2015/01/fad-press-release-2015-01-21/

http://www.cbc.ca/news/business/bank-of-canada-shocks-markets-with-cut-in-key-interest-rate-1.2921370

Angela Calla, AMP

DLC-Angela Calla

604-802-3983

Thanks as always for the great reminders throughout the life of my mortgage. The mortgage plans you have set out for me since I have done mortgages with your team instead of doing it myself with the credit union have saved me thousands of dollars, first it was $1200/month and now years later over $600 a month after getting some equity for my home renovations.. My big thank you to you and the whole team. The 5 year fixed mortgage rate renewal is OMG awesome and feels really comforting knowing I have that security long term! You guys made it so easy for me and pain free! With all your team’s expertise, I salute! You guys did above and beyond my expectations! You guys rock and let the whole world know…. I have already over email introduced you to 2 of my coworkers for you to call, and they have been equally impressed.

Carmelita of Port Coquitlam 

Your Age, life stage and need for access to funds and what you already have invested all play a roll in determining the best plan for you.

If you have specific questions regarding your senerio The Angela Calla Mortgage Team is here to help and our service is free and without bias. Contact us at 604-802-3983 or callateam@dominionlending.ca

http://business.financialpost.com/2014/11/22/forget-about-the-stockspay-off-your-mortgage-or-invest-how-to-figure-out-whats-best-for-you-and-bonds-until-youve-eliminated-your-mortgage/?utm_content=bufferb3b00&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer

Thanks for visiting!

Angela Calla

Take a peak at Vancouvers most expensive listings here in Nov 2014 Courtesy of Vancouver Buzzfeed.

http://www.vancitybuzz.com/2014/11/vancouver-real-estate-novembers-expensive/

Mortgage Questions? Contact The Angela Calla Mortgage Team 604-802-3983 callateam@dominionlending.ca