Do you know your credit score? 4 Important Tips

General Angela Calla 8 May

Your credit score is a number   that illustrates your financial health at a specific point in time. It’s also   an indicator of how consistently you pay off your bills and debts.

Your credit score is one of the factors lenders consider when   qualifying you for a mortgage. A good credit score, for example, can help   improve your chances of being approved.

To find out your credit score, contact Canada’s two   credit-reporting agencies: Equifax Canada and TransUnion Canada.   These agencies can provide you with an online copy of your credit score as   well as a credit report – a detailed summary of your credit history,   employment history and personal financial information.

If you find any errors in your report, notify the   credit-reporting agency and the organization responsible for the inaccuracy   immediately.

 

 

Tips for improving your score
  There are several ways to improve your credit score,   including:

      

  • Always pay your bills in full and on time

    •   

  • Pay off your debts as quickly as possible

    •   

  • Never go over the limit on your credit cards

    •   

  • Try to reduce the number of credit card or loan        applications you make

Ensuring your credit score is in good shape better enables   negotiations with lenders to obtain the best mortgage possible to meet your   unique needs.

To find out more about credit scores and reports, you can also   visit the Financial Consumer Agency   of Canada website and download or request a free copy of   their guide, Understanding Your Credit   Report and Credit Score.

This guide provides practical,   straightforward information on how to obtain and understand your credit   report and score, as well as how to build and maintain a good credit history.

Using The Angela Calla Mortgage Team protects your credit score as we shop all the suitable lenders with only one application keeping your score maximized & saving your money.

 Contact us today at 604-802-3983 or callateam@dominionelnding.ca

Top 3 Homebuying Tips

General Angela Calla 8 May

If you’re thinking of buying   your first home or upgrading to a new one, the inventory of homes on the   market come Spring is definitely plentiful – providing for a great selection   of homes to serve your unique needs.

Still, there are also generally more people out looking at   homes in the Spring as well. And while some homebuyers feel anxious about   securing their dream home as soon as possible, it’s important to take the   time to be patient and make sure the home is a good fit for you and your   family.

After all, home-buying is likely the largest investment you’ll   ever make, and doing your due diligence when determining which house to buy   ensures that fewer surprises arise after your moving day.

Following are three top considerations to keep in mind when   looking for your new home this Spring:

  1.   Get preapproved for a mortgage. Not only will this step help you compete   against other buyers who have not been preapproved, but it will also ensure   you only look at home’s within your price range – saving you the trouble of   falling in love with a home you can’t afford. Your mortgage broker or lender   will be able to get you preapproved before you start browsing homes.
  2.   Think about what you need. Jotting down specifics regarding what you   “need” in a home – as opposed to what you “want” –

 

will help determine the types of homes you   should be viewing. It’s rarely possible, however, to find a perfect home for   your needs, tastes and budget. While it’s important to weigh your priorities   before you start your home search, it’s equally important to be flexible and   willing to change your mind once you see what your true options are – viewing   properties can shift your priorities. And remember that if you can only find   places that require too many compromises, it’s okay to keep looking – new   homes come on the market daily!

  1.   Look past the staging. Many sellers enlist staging professionals to help sell their   homes faster and at a higher price. While this often makes listings more   visually appealing to buyers, some major flaws may be covered up through   staging. And while minor cosmetic issues can often be overcome with a simple   fix such as a coat of paint, larger, more costly issues can arise with a home   if you don’t notice poor conditions before you buy. Some things to look for   include: leaks around plumbing fixtures and ceilings (thanks to upper floor   bathrooms); stains on walls or ceilings; evidence of mould; poor workmanship   on flooring, moulding, windows and doors; or aging and worn seals around   windows and doors.

As always, if you have any questions or concerns about buying   or selling a home, or you’d like some useful tips, information and answers to   your questions are just a phone call or email away!

The Angela Calla Mortgage Team

604-802-3983

callateam@dominionlending.ca

2 Private Mortgage Insurers Provide More Options For Borrowers

General Angela Calla 8 May

One of the significant advantages of using The Angela Calla Mortgage Team is we place your mortgage with the best lender & insurer upfron tto suit your needs.

The private insurers have been wonderful in providing options and more cost effective solutions for borrowers.

This period in time is no exception, below has the details of Genworth & CG’s letter to the lenders in response to CHMC’s changes effective May 30th 2014.

http://www.theglobeandmail.com/report-on-business/economy/housing/mortgage-insurer-genworth-opts-not-to-match-cmhcs-cuts/article18402954/

Contact The Angela Calla Mortgage Team directly at 604-802-3983 or callateam@dominionlending.ca to help you with the best mortgage options to result in the lowest cost of home ownership.

 

Seperating from your spouse? Know your options

General Angela Calla 5 May

Since most couples have a   joint mortgage – one where both names are on the mortgage and title of the   home – when separation or divorce proceedings get underway, many wonder what   will happen with the home.

When the marriage comes to an end, there are two obvious   options concerning the home: 1) sell the property and split the proceeds   according to your agreement and go your separate ways; or 2) one person buys   the other party out of the mortgage and the title of the property.

The first option is a straight-forward transaction where you   put the house up for sale, sell and split the proceeds. The second option,   however, is slightly more complicated.

The decision between the options is a personal one borne out   of the specific circumstances of the parties involved. Perhaps there are   young kids involved that need to stay in the house, the market is down and   there will be a loss on the property that neither party can afford, one party   can afford to buy the other party out, etc.

Once the decision is made, how do you go about buying the   other person out of a mortgage?  Well, essentially, you’re refinancing   your mortgage using a single income (the person who’s buying the other party   out of the house) and qualification, versus the original purchase, which was   based on joint income and qualification.

If you’re the one buying your partner out, the first step is   to ensure that you can afford the mortgage payments.

 

This is imperative because the lender will ask for proof that   you’re capable of covering the mortgage in order for you to apply on your   own. In addition to covering the mortgage amount, you’ll have to come up with   whatever dollar amount you have agreed on to buy the other partner out. This   may come out of the equity in your home if it’s sufficient.

In essence, if you can afford the mortgage on your own, the   most common means of buying out your partner post-separation and transferring   title out of the joint name and into your name, is to refinance. I can help   you through each step of this process. And although the maximum refinance on   a home is 80% of the appraised value, given the unique circumstances   surrounding separation, you can often refinance up to 95% of your home’s   value.

If you’re not in a financial position to buy your ex-partner   out of the house, and you agree to both stay on title and have payment   arrangements, there’s one warning to be taken very seriously – just because   one person is responsible for the payments (even with a court order), if the   mortgage goes into default, both parties on the mortgage will be affected.

The most important piece of advice when dealing with a   mortgage during a separation is to become informed. Know your options, talk   to professionals about your options, and make an informed decision regarding   your home and mortgage.

As always, if you have any questions about the information   above or your mortgage in general, I’m here to help!

Angela Calla 604-802-3983

callateam@dominionlending.ca

Housing hot spots- is your community on the list? 1st timers here’s where to buy

General Angela Calla 5 May

Wondering where B.C.’s housing hot spots will be over the next few years?

As Surrey residents, the Rajkowskis are living in what experts say is the Lower Mainland’s hottest real-estate market.

Communities such as Clayton Heights, Cloverdale and Fleetwood are hot and expected to stay hot in the near future as buyers seek affordable housing near family-friendly services.

Other areas expected to see brisk demand from buyers over the next few years are Burnaby’s Brentwood, the Tri-Cities and Fraser Valley communities of Langley, Maple Ridge, Pitt Meadows and Abbotsford.

In Vancouver, urbanites who prize city living are pushing up demand in the Main Street, Outer Hastings and East Vancouver’s Cedar Cottage neighbourhoods, says Tsur Somerville, director of the University of B.C.’s Centre for Urban Economics and Real Estate.

For the Full Vancouver Sun Article http://www.theprovince.com/business/Hottest+spots+homebuyers+Surrey+Abbotsford+Evergreen+Line+communities+high+demand/9802218/story.html

For the best money saving mortgage contact The Angela Calla Mortgage Team today 604-802-3983 callateam@dominionlending.ca

The deadly costs of exit fee’s if you choose the wrong mortgage

General Angela Calla 1 May

Here is a great video that explains not all lenders although there policy seems simular is the same when it comes to calculating the penalty.

http://www.theglobeandmail.com/report-on-business/video/dont-get-stuck-in-the-mortgage-penalty-box/article18074696/#dashboard/follows/

The Angela Calla Mortgage Team looks to place your mortgage first provided you qualify with a lender whom does not use posted rates as their gauge. This will save you thousands of dollars long term and reduce your cost of borrowing.

Contact us today to help you with your mortgage and to avoid this costly mistake 604-802-3983 callateam@dominionlending.ca

Mortgage Insurer Changes April 2014

General Angela Calla 1 May

CMHC is cutting the types of mortgage insurance it offers, meaning the era of tighter rules for homebuyers hasn’t come to an end.
 
The Crown corporation said late Friday it will stop insuring mortgages on second homes, effective May 30th. Anyone who has an insured mortgage will no longer be able to act as a co-borrower on another mortgage that CMHC insures. In addition, it will stop offering mortgage insurance to self-employed people who don’t have standard documents to prove their income.
 
CMHC said it does not expect the new rules to have a big impact on the housing market, but hinted more changes are on the way.
 
So far, Genworth and Canada Guaranty have not announced plans for similar changes.
 
Click here to read more from the Globe and Mail.
 

The constant in mortgages is change. The Angela Calla Mortgage Team is here to help you for the life of your mortgage at 604-802-3983 callateam@dominionlending.ca

What you need to know about pre approvals

General Angela Calla 1 May

Putting your full faith in a mortgage preapproval is like betting on a heavy favourite in a horse race. You’ll probably win but there’s room for major disappointment.
 
Sure, preapprovals have benefits:

  • The best ones accurately measure your qualifications and how much house you can afford
  • Their 90- to 120-day rate guarantees protect you if rates rocket up while you’re home hunting
  • They make you seem more serious to sellers and real estate agents. (In competitive bidding situations,      they’re almost mandatory)
  • They’re free and there’s no obligation to use the lender that preapproved you

But here’s the problem: preapprovals are not full approvals. So if you’re going to rely on one, you need to understand their limitations.
 
Click here for 10 preapproval facts every mortgage shopper should know courtesy of the Globe and Mail.

The Angela Calla Mortggae Team is here to help you with your mortgage contact us at 604-802-3983 or callateam@dominionlending.ca
 

3 steps-how to own in your 20

General Angela Calla 11 Apr

There are many factors being overlooked by the media frenzy focusing on how unaffordable real estate is these days.

 Of course housing is more expensive than it was for our grandparents! Everyone has a similar family comparison of how a grandparent or aunt paid $50,000 for a home in 1954 and sold it for $600,000 in 2010! That’s a lot of years for home prices to rise!

 Have Canadians forgotten about the tax shelter that home ownership provides?

 We have TFSAs and RRSPs, but they can only help so much, especially when you have to invest, in most cases, after you have paid your housing expense.

 Real estate is often overlooked for tax reduction and deferral, let alone income generation and inflation protection.

 In the example above of the home purchased in 1954 and sold in 2010, there was $550,000 in equity that is Tax Free! Who can argue that doesn’t provide a good future lifestyle for whatever life can throw at you?

 Let’s take a look into the life of these homeowners who had four children and were able to help all of them with a down payment for their first homes.

 As they aged, they also ran into some health problems. They eventually ended up in long-term care, which cost $5,000 a month. No surprise that isn’t covered by a pension!

 They could go to their children. They have $5,000 a month to spare, right?! Not likely.

 Take a look at what you net on your income:

$50,000 gross = 40,465 net

 Are you depressed yet?

 To find your tax bracket, use the following chart: http://retirehappy.ca/marginal-tax-vs-average-tax

 How could you get that if you rent?

 Here is the profile of how to build this for yourself in your 20s in a year:

Earning $32,000/year ($16/hour full time).

Step 1: Save $12,000 – get aggressive by saving $1,000 per month! Live at home, take a bus, and do whatever it takes. If you have an excuse, you don’t want it badly enough.

Step 2: Buy a two-bedroom condo for $200,000 in either the Tri-cities, Surrey, Delta, Langley, Maple Ridge or Pitt Meadows. A member of our team will find one for you – and protect you with the best mortgage.

Acc Bi weekly mortgage payments = $478. MUST increase to $574 accelerated bi-weekly.

This mortgage paid off in approx 12 years!

Insurance and additional ways to pay your mortgage off faster:

Rent a room to your brother, co-worker, a student, etc, or even rent out your parking spot

Step 3: You now have $200,000 in Tax-Free money to build more wealth in your early thirties – Yes, please! (This is provided the property didn’t even increase in Value, which is unlikely over 12 years!)

Real estate is not a gamble long-term. Stop making excuses today! If you don’t make excuses, you can have it – I did this!

6 Details Banks Don’t Tell You That Cost Borrowers

General Angela Calla 8 Apr

Many borrowers have been focused on the wrong details when it comes to their mortgage. It’s NOT all about the interest rate. To focus solely on the interest rate can be a costly mistake. The difference between 10 basis points (eg, 3.39% vs 3.49%) on a $350,000 mortgage is a savings of $556 in interest throughout an entire 5-year term, and can actually cost you more than $18,000 by taking the lower rate!

There is a significant list of items that contribute to a larger cost by opting for the lowest rate without taking other factors into consideration.

Below are a few examples that clients were most surprised with this month:

1. If they have posted rates – the fees are at minimum double if not triple to exit your mortgage or make a change. Even if the lender beats the rate you’re getting upfront, it’s going to cost you! Example on a 300k mortgage $12k to exit vs $4500.

 2. Semi-monthly payments benefit the lenders, not you.

This is a trick that doesn’t help the borrower pay down the principal at all. We see time after time borrowers who “think” they were doing the right thing (accelerated bi-weekly payments, which actually help you pre-pay your mortgage an extra month’s worth of payments per year).  The borrower then gets stuck with that lender as they don’t have enough equity to move elsewhere. This can cause significant payment shock at the end of your term.

3. Life and disability insurance through your lender isn’t “really”portable.

True portability means that the insurance will follow your mortgage from lender to lender. Bank products only allow for portability If you remain with them, so this is a “half truth”. They may not be as competitive or have a product that suits you in the future. This is just another sales capture tactic. If you want true freedom, be sure to get independent insurance!

 4. Most lenders prefer to register a mortgage as a collateral charge that costs you money down the road.

Sure it has its place – it’s sold as a convenience – but be sure to read the fine print. You have to re-qualify and pay fees to access additional funds down the road. How is that convenient for you?

 5. Want the lender to include property taxes with your mortgage payment? Did you know they charge you for that option?

They also only pay your taxes annually, which means they’re sitting on your money. If you opt for automatic withdrawal from the city you live in directly, there can be up to a 1% discount. With some insured mortgages it’s mandatory for a while for them to collect your taxes and pay on your behalf, but it’s always best to keep your money in your control whenever you can!

6. Did you know that if you bought a home with mortgage insurance (most commonly but not always for a less than 20% down payment that is portable and you can do a top up?) The lender’s policy is to apply for new insurance to collect a new premium to increase the mortgage amount. They may not have the product you need the 2nd or 3rd time around if you qualify for a top up it saves you thousands. Also they have there own internal policies as to how long they will allow a transfer to happen with insurer’s. They are to avoid top up’s and get new policies…the price you can pay? On a 300k mortgage say for a self employed borrower $16,350.00 added to the 300 k instead of a few hundred dollars on average!

 The Angela Calla Mortgage Team can ensure you have clarity of all the pros and cons of the options out there for the lowest cost of home ownership contact us today at 604-802-3983 callateam@dominionlending.ca

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