5 year fixed interest rates have bumped up over 70 basis points in just  2 weeks, making the 10 year the best opportunity for borrowers to protect themselves.

With mortgage rates at all-time lows, it seems longer terms are making a comeback. It turns out that fashion isn’t the only thing that comes back into style!

In fact, 10-year fixed mortgage rates have never looked so sexy. If you owned a home in the 80s or 90s, you may notice the 10-year term comeback!

 Following are three reasons to consider a 10-year mortgage term:

 1. After 5 years, you only have to pay three months’ interest to get out of the mortgage. This is currently the lowest penalty available to for a fixed rate – much more attractive than facing a much higher interest rate differential (IRD) penalty!

 2. You don’t need the equity out of your home for your next purchase as you can buy again with a 5% down payment. For instance, if you purchase with 5% down, your property would have to go up over 25% for you to get equity to use as a down payment for a second home, which is not likely in five years.

But, you can turn your current condo into a rental and buy your next home with 5% down (with a combination of savings or a gift). Rental mortgages usually require a 20% down payment, whereas primary residences typically require just 5% down. Purchasing a condo to live in until you’re ready to buy another home, and then renting out the condo, is a great way to become a real estate investor without having to come up with a 20% down payment.

 3. If you’re on a fixed income, taking advantage of a longer term fixed-rate mortgage can definitely be beneficial. Currently, with our historically low interest rates, a five-year fixed rate is around 3.19% and 10-year is around 3.99%. So, if after 5 years rates have risen to 3.8% or higher (which is very likely), you would have been ahead taking the current 10-year.

Instead of guessing how much longer rates will remain at historic lows, if you’re on a fixed income, you know you’ll be paying the same rate for 10 years. And, chances are, after 10 years are up, you will be in better shape financially and have more equity in your home.

The return of the solid 10-year means you have options. It may not be the best option for everyone and the market may change in a few weeks to make it less attractive. I will show you how all the products apply to you to ensure you receive the best product for your goals!

Thanks for visiting

Angela Calla, AMP

Dominion Lending Centres-Angela Calla

Host of ” The Mortgage Show” Saturdays @ 7pm on CKNW AM980

Phone: 604-802-3983 Email: callateam@dominionlending.ca

* rates are subject to change and final approval

Marriage is such an exciting milestone that offers so much hope for the future by uniting two partners to establish roots together. I have found that it’s important to consider the following when setting out on the marriage journey to ensure your financial house remains in order, since financial strain can put a lot of pressure on relationships:

 1. Your partner’s credit history/spending style. When you’re considering buying a home together, it’s important to know what you’ll be dealing with even before you decide to get preapproved for a mortgage. If you need to fix up your credit, for instance, knowing ahead of time can save lots of hassles down the road.

2. Setting up title. This may depend on your credit score as well, and also spark the conversation of your comfort level of equally being on title (meaning both borrowers will be using our first-time homebuyer’s status, provided you qualify). Another option is for one borrower to appear as a guarantor on the title (meaning the other spouse can use the first-time homebuyer status next time and have a potential future savings of $6,500). 

3. Down payment. If part of your down payment is a gift, some family members don’t want to give it unconditionally. They often want something in writing to ensure their family member gets back the gifted amount if you don’t happen to live happily ever after. If this is the case, you want to discuss this in advance so it’s one less discussion to have when purchasing a home together.

4. Focusing on rates. Regardless of your marital status, rate fixation is a trap many Canadians fall into. The right mortgage terms play the biggest role in becoming mortgage-free faster. Borrowers don’t want the lowest rate but, rather, the lowest cost of borrowing and transparency. We even help you with future insurance portability (mortgage and life). Failing to discuss your options with an independent mortgage broker and looking at more than just rate can easily mean you will owe more at the end of your mortgage term.

When you work with an unbiased mortgage professional our service is free and we are here to help you throughout the ever-changing market and your lifecycles to ensure you are presented with the best possible mortgage options. Building the best foundation by thinking ahead will help you stay ahead financially and minimize financial stress on your relationship.

Do you know someone who should have a discussion with our team about purchasing a home? Please forward this along to them and introduce us in an email, so we can help them build a plan!

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

Have you ever wondered if there was a way to get a mortgage larger than the purchase price of your home to do some renovations?

Do you want to do some renovations on a property you would like to purchase and don’t have the money or think you can afford to renovate?

The answer for you may exist in the Purchase Plus Improvements Program. This is a product available through the Angela Calla Mortgage Team where you can purchase a home and add 10%-20% or a maximum amount of $40,000 to your mortgage in order to improve the quality of your home at today’s record low rates when you’re making less than a 20% down payment.

How it works:

Improvements cannot exceed 10-20% or the lesser value of $40,000 of the property’s value or as improved. You would have to qualify for the full mortgage and improvement amount, and the advance would be given to you in one lump sum after the work has been completed. The extra funds are held in trust with the lawyer until the lender approves the appraisal or receipts, depending on the lender’s policy, to confirm the work is complete. Two to three quotes from a contractor will be required by the lender to review for approval, and the work should be completed within 90 days (some lenders will allow for a longer timeframe). Each case is different and we will help you every step of the way!

4 top reasons to consider this product:

1) You will not be accumulating outside debt at a higher interest rate, keeping with an affordable budget for buyers. Borrowers who use a line of credit or credit card would have higher carrying costs, when compared to fully discounted mortgage rates.

2) Helps quickly improve your new property’s value.

3) The appraiser/lender has to confirm the work has been completed, but it is not essential to confirm an increase in value of 20% for some lenders.

4) Lenders will generally have a policy requiring the work to be completed within 90 days, but some lenders have different timelines.

What renovations apply:

Different lenders have different policies, but most lenders approve fixed assets (eg, countertops, floors, paint, etc).

Understanding the numbers:

It’s important to keep in mind that the banks would prefer for you to pay for renovations via a line of credit or credit card as they earn much more money off these products. If you consider that a payment on a $10,000 loan not included in your mortgage works out to $300 dollars a month and $10,000 within a mortgage is approximately $50 a month, if you qualify, this product can save you $250 a month.

The Angela Calla Mortgage Team is always here to ensure you have the best product available for your needs, while saving you the most amount of money throughout the life of your mortgage.

Worried about the stress of living through renovations? This video is worth watching, FairTradeWorks make renovating easy! http://vimeo.com/67174441

 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

Easy Refinance Program Highlights:

This program is administered through FCT and covers the following at no cost to the borrower:

* All secured and unsecured debt payout

* One (1) signing appointment with an FCT representative

* Mortgage Registration

* Discharge of existing mortgages

* Lender title insurance

* All courier fees for the borrower(s) proceeds

* Appraisal Costs 

To qualify for this program, the following must be true at the time of closing:

* The mortgage amount must be between $200,000 and $750,000.

* The loan to value cannot exceed 75%.

* Must be Owner-Occupied and fully qualifying.  Second Homes allowed provided they are considered Owner-Occupied

Please note the Easy Refinance Program is only available under a 5 Year Fixed Rate term.
In the event that a deal does not qualify under the Easy Refinance Program,  we will ensure you get the best mortgage option to save you the most about of money over the term of your mortgage and you have the best mortgage for you and your future plans.

This option can be withdrawn at any time so we suggest you act quickly to see if it’s avaliable to you

Want to learn more about our New Refinance Program? Contact th Angela Calla Mortgage Team today callateam@dominionlending.ca 604-802-3983

 So back to that penalty issue… have you wondered how some lenders charge such a high penalty when the mortgage term is almost over? This is an obvious retention tool the banks leverage to keep you on their books!

 One of the many considerations we have when finding you the best mortgage is how they calculate penalties, as the market and your needs can easily shift throughout the term of your mortgage.

 Do they charge a reinvestment fee as well? Do they have hidden clauses about firm sales? Do they charge a premium on top of the interest rate differential (IRD)?  

 Below are two examples of how lenders are calculating penalties. Which one would save you the most amount of money not only when you first get a mortgage, but also if you need to make a change? This is one of the many advantages of having our team help you without bias to understand the different available options and the terms lenders use to make more money from borrowers. We help you keep your hard-earned money in your pocket.

 At the Angela Calla Mortgage Team, we first look to place your mortgage with a lender that does not use posted rates!

 Angela Calla, AMP

Dominion Lending Centres-Angela Calla Mortgage Team

Host of The Mortgage Show Saturdays at 7pm on CKNW AM980

Phone: 604-802-3983 Fax: 604-939-8795

“An introduction to someone you care about is a big responsibility…it’s also the biggest compliment a client can give us & it’s not taken lightly. We pledge to treat everyone that is referred to us with the utmost respect & professionalism”.

www.angelacalla.ca

Reach my Team Chris Adkins & Denzil Anderson at 604-939-8777 & callateam2@dominionlending.ca

In a recent Bank of Montreal survey, a First-Time Homebuyer is 29 years old and has saved a $48,000 down payment for a $300,000 home purchase.

Who fits this profile?

If you fit this average, it will take an annual household income grossing $40,000 per year (earning approximately $20 dollars full time and past your probationary period). If you are self-employed, this $40,000 income would have to be your net income based on at least two years of tax returns.

What if you don’t fit the average?

Lots of young Canadians find it next to impossible to save $48,000 for a down payment. Instead, they may be able to scrape together a 5% down payment ($15,000 using the $300,000 purchase price example) with a combination of savings, RRSPs and a gift.

You still have options – Your gross annual income needs to be: $50,000 – Your monthly mortgage payment with today’s average rates will work out to: $1,370

What can you buy?

Here are examples of over 800 homes within 45 minutes of Vancouver that are all 2 bedroom, 2 bathrooms with insuite laundry: http://rboies.mlslink.mlxchange.com/?r=903314772&id=363434333136.312

Home ownership comes with other expenses as well, including maintenance fees (condos/townhomes) and taxes which range from property to property. When you look at the fundamentals apparent in your personal scenario, home ownership may be easier than you think!

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

On this edition of The Mortgage Show with Angela Calla Rob Boies of Royal Lepage joined us to discuss the flags not to be ignored  

To reach Rob Boies directly call 604-341-3009 or robboies@royallepage.ca

Clich here to listen now! Rob_Boies_Interview_-_April_11th_.mp3

The average Canadian homeowner doesn’t think they’ll be mortgage-free until they’re 57 – two years longer than what they expected last year, a survey by CIBC suggests.

 The survey also found that half of those surveyed said other debt, from credit cards to lines of credit, have increased and impeded their ability to pay off their mortgage more quickly.

“Our view would be that Canadians are taking a look at their broader finances and are working to pay down other debts first to reduce their interest costs,” said Colette Delaney, EVP of mortgage, lending, insurance and deposit products at CIBC.

“Those with a growing amount of non-mortgage debt are less likely to be taking extra steps to pay down their mortgage, and this can lead to a longer payback period.”

Click here for the full Global News article.

Click here to read the CIBC press release.

To make sure you can be Mortgage Free as soon as possible contact The Angela Calla Mortgage Team 604-802-3983 callateam@dominionlending.ca  we can restructure your mortgage to include the outside debts to improve your cashflow and reduce your interest costs.