Deals of the week as heard on @cknw @angelacalla from @willingtwo #vancouver #portcoquitlam

General Angela Calla 6 Jul

As heard on this weeks Mortgage Show on CKNW with Angela Calla Saturday July 7th 2012. To get pre approved for this property or any other purchase email us at callateam@dominionlending.ca or call 604-802-3983

This weeks deal of the week has been brought to you by:

Vancouver $40 a day http://rboies.mlslink.mlxchange.com/?r=192510893&id=363434333136.312

Port Coquitlam $22 a day (forclosure)
http://rboies.mlslink.mlxchange.com/?r=664365465&id=363434333136.312

Robert Boies
Royal LePage Coronation West
cell: 604 341 3009 t: willingtwo
E-mail: robboies@royallepage.ca
www.willingsellerwillingbuyer.com

Please note that properties like this move quickly and getting set up with Rob Boies directly robboies@royallepage.ca will keep you abreast of all of these types of oppertunities meeting your speciafications

Thanks for visiting

Angela Calla, AMP

 


Homebuyers Rejoice In Todays Buyers Market

General Angela Calla 4 Jul

The current mortgage rate environment truly is an amazing opportunity for Canadians!

It’s interesting to compare today’s mortgage opportunities to the peak of the market in 2008. With a $300,000 mortgage at a 40-year amortization and a 5.79% interest rate in 2008 compared to today’s 3.09% five-year fixed rate at a 25-year amortization means today’s payment would be $159 less and you would own your home 15 years sooner!

While the past isn’t always a reflection of what’s to come, the reality is that five-year fixed-rate mortgage rates over the past two years are the lowest in history and there are some great deals on properties out there! :

  • 2012: 3.09
  • 2011: 3.59

What you need to do with this info: If you don’t own…look at your options to BUY YOUR FIRST HOME.

Even though rates have nowhere to go but up at some time in the future, upon renewal you’ll have paid off enough of your mortgage that you should not have payment shock, and you’ll qualify with options maximized at today’s lower rates. If you continue to rent, your landlord has the ability to raise your rent in accordance with inflation, you receive no equity for your increase in payment and your only choice is to move. In BC this past year, landlords had the ability to raise rent by 4%.

Despite what you may have heard, real estate is affordable in BC. There are only small pockets in the premium markets that are out of reach for most Canadians. The reality is, if you make $40,000 per year, you can own a condo in many hot municipalities for a payment that may even be less than your current rent! The property ladder does not start at the top with a million dollar home – the sooner you start, the faster you can move up the ladder.

Example of a successful buyer this week with The Angela Calla Mortgage Team:

James, a 27-year-old single man, makes $19.31/hour working full time as a shipper for a tool company in Surrey. He has been with his current employer for the past year and was paying $1,250 a month in rent. He had managed to save over the years approximately  $10,000 with some diligent planning.  After consulting with our team on his options, he purchased a 2-bedroom, 2-bathroom condo on the Surrey/Langley border (close to his work) for $17,500 below the assessed value for $184,500. This unit was completely updated so he didn’t have to spend a penny on upgrades. It’s situated right across from the shopping centre, has a large patio and the unit suits his lifestyle. He can save money by having his friends over at the clubhouse, comfortably turf his gym membership as the building has a great gym and he now lives 10 minutes away from work. He could even walk to work (when we begin to see some real summer) and rent out his parking spot or spare ro om if he wanted to earn additional income. So this fundamentally fits into his budgeting with all of those aspects considered. His mortgage payment is $845/month (on a 25-year mortgage), plus strata fees (including heating) of $286. His property taxes work out to $56/month. His total costs per month are now $1,187 – which is $63 less a month than he was paying in rent! Breaking it down even further, his total costs work out to $40 dollars per day.

There are lots of examples of people we have helped just like James make up to a 2-bedroom purchase – not just in Surrey, but also in Langley, Burnaby, New Westminster, Port Coquitlam, Port Moody, Coquitlam,  Maple Ridge, Pitt Meadows, Delta, and yes even areas of Vancouver!  Don’t let news of changes in the mortgage industry prevent you from entering the property market and building equity in your own home!  

Our team of experts will clearly explain the upcoming mortgage changes and help build a plan based on your unique needs and financial situation.  Getting preapproved for a mortgage and learning your options is a simple process. All it takes is a 15-minutes phone conversation to answer some basic questions, and then for you to send over a payslip. Some would suggest it’s harder to get a concert ticket in the lower mainland!

Consider this: James is below the average income in BC according to this survey that says the average hourly wage is $23/hour: www.welcomebc.ca/wbc/immigration/choose/economy/income.page. He lives comfortably  and still managed to save based on his choices on a single income. James doesn’t have parents who had the ability to gift him the money for his down payment, and he doesn’t have a secondary education (just a high school diploma).  What made him successful was that he took the time to educate himself and seek out the right team to help him build a plan while he’s just 27 years old. The right knowledge is very powerful and instrumental in your success.

Keep these facts in mind: We live in one of the most desirable places in the world; Our vacancy rate is below 2%; and 25% of British Columbians are landlords by either renting out a room or a suite. Regardless of the timing in the market, the key to success is always about affordability and fundamentals. When the simple planning is in place and you’re clear on your goal, you’ll be successful in your endeavour if you chose to become a homeowner.

If you or anyone that you care about is curious about their options, needs to update their preapproval with the recent changes or just wants help building a plan, The Angela Calla Mortgage Team is here to help.

Angela Calla, AMP
Mortgage Expert
Host of “The Mortgage Show” on CKNW AM980 Saturdays at 7pm

 email: callateam@dominionlending.ca

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

t: @angelacalla

Facebook: Angela Calla Team, AMP Your Mortgage Expert
Toll Free: 1-888-806-8080
Email: callateam@dominionlending.ca
Apply Online: www.angelacalla.ca
CLICK HERE to Watch My Video Presentation

 

Without question we are in a buyers market learn about your options now @angelacalla @willingtwo

General Angela Calla 4 Jul

Greater Vancouver housing market favoured buyers in June

The number of residential property sales hit a 10-year low in Greater Vancouver for June, while prices remained relatively stable.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties reached 2,362 in June, a 27.6 per cent decline compared to the 3,262 sales in June 2011 and a 17.2 per cent decline compared to the 2,853 sales in May 2012.

June sales were the lowest total for the month in the region since 2000 and 32.2 per cent below the 10-year June sales average of 3,484.

“Overall conditions have trended in favour of buyers in our marketplace in recent months,” Eugen Klein, REBGV president said. “This means buyers are facing less competition and have more selection to choose from compared to earlier in the year.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,617 in June. This represents a 3 per cent decline compared to June 2011 when 5,793 properties were listed for sale on the MLS® and an 18.9 per cent decline compared to the 6,927 new listings reported in May 2012.

At 18,493, the total number of residential property listings on the MLS® increased 22 per cent from this time last year and increased 3.7 per cent compared to May 2012.

“Today, our sales-to-active-listings ratio sits at 13 per cent, which puts us in the lower end of a balanced market. This ratio has been declining in our market since March when it was 19 per cent,” Klein said.

The MLSLink® Housing Price Index (HPI) composite benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 1.7% and declined 0.7% compared to last month.

Sales of detached properties on the MLS® in June 2012 reached 921, a decrease of 37.4 per cent from the 1,471 detached sales recorded in June 2011, and a 19.1 per cent decrease from the 1,139 units sold in June 2010. The benchmark price for detached properties increased 3.3 per cent from June 2011 to $961,600.

Sales of apartment properties reached 1,026 in June 2012, a 19 per cent decrease compared to the 1,266 sales in June 2011, and a decrease of 18.4 per cent compared to the 1,258 sales in June 2010. The benchmark price of an apartment property increased 0.3 per cent from June 2011 to $376,200.

Attached property sales in June 2012 totalled 415, a 21 per cent decrease compared to the 525 sales in June 2011, and a 27.8 per cent decrease from the 575 attached properties sold in June 2010. The benchmark price of an attached unit decreased 0.1 per cent between June 2011 and 2012 to $468,400.

Download the complete stats package by clicking here.

Is Mortgage Portability Important

General Angela Calla 3 Jul

Selling your current home and moving into a new one can be stressful enough, let alone worrying about your current mortgage and whether you’re able to carry it over to your new home.

Porting enables you to move to another property without having to lose your existing interest rate, mortgage balance and term. And, better yet, the ability to port also saves you money by avoiding early discharge penalties.

It’s important to note, however, that not all mortgages are portable. When it comes to fixed-rate mortgage products, you usually have a portability option. Lenders often use a “blended” system where your current mortgage rate stays the same on the mortgage amount ported over to the new property and the new balance is calculated using the current interest rate.

With variable-rate mortgages, on the other hand, porting is usually not available. As such, upon breaking your existing mortgage, a three-month interest penalty will be charged. This charge may or may not be reimbursed with your new mortgage.

 

Porting conditions
While porting typically ensures no penalty will be charged when you sell your existing property and buy a new one, some conditions that may apply include:

  • Some lenders allow you to port your mortgage, but your sale and purchase have to happen on the same day. Other lenders offer a week to do this, some a month, and others up to three months.
  • Some lenders don’t allow a changed term or force you into a longer term as part of agreeing to port your mortgage.
  • Some lenders will, in fact, reimburse your entire penalty whether you are a fixed or variable borrower if you simply get a new mortgage with the same lender – replacing the one being discharged. Additionally, some lenders will even allow you to move into a brand new term of your choice and start fresh.
  • There are instances where it’s better to pay a penalty at the time of selling and get into a new term at a brand new rate that could save back your penalty over the course of the new term.

While this may sound like a complicated subject, I can explain all of your options and help you select the right mortgage based on your own specific needs. Angela Calla Mortgage Team callateam@dominionlending.ca

604-802-3983

Breaking News: Changes to Mortgage Lending Guidelines

General Angela Calla 21 Jun

The Federal Government has announced four new clamp downs on mortgage financing effective Monday, July 9th, 2012.

These changes include:

  • Reducing the maximum amortization period to 25 years from 30 years
  • Reducing the maximum amount of equity homeowners can take out of their homes when refinancing to 80% from the current 85%
  • Limiting the availability of government-backed mortgages to homes with a purchase price of less than $1 million
  • Fixing the maximum gross debt service ratio at 39% and the maximum total debt service ratio at 44%

Where we are coming from: In 2008 the Government allowed up to 100% financing at 40 year amortizations. If we compare a $300,000 mortgage at 5.79% for 40 years in 2008, the minimum monthly payment required was $1,592.72.

Under the new rules announced today, a $300,000 mortgage for 25 years at a 3.09% five-year fixed rate, the minimum monthly payment required will be $1,433.63.

The difference comparing where we came from to where we will stand after the new rules? Your monthly payment is reduced by $159.09 and you’re mortgage-free 15 years sooner!

Is there a big difference between the 30-year vs 25? No, the difference is only $52.48 per $100,000 in mortgage debt. As seen in the above example, it actually places Canadians in a better financial position.

These changes will only affect insured mortgages. So if you have greater than a 20% down payment or equity built up in your home, we may see these options around a bit longer. But, until July 9th, you can still get a 30-year mortgage even if you have an insured mortgage.

As for the refinance limit, this shows us the federal Government wants to ensure prudence to reduce spending and be certain people are not refinancing all the equity out of their homes.

What you should do with this information? Move quickly to review your options with the Angela Calla Mortgage Team to ensure you have the best options and strategies available at all times especially if you have a pre approval or renewal in the upcoming years. You can always count on your AMP when the market changes to advise you on your best options!

 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

New Lending Guidelines expected late June early July

General Angela Calla 15 Jun

With new lending changes expected in the weeks to come, it’s best to review your purchase, renewal or refinance options sooner rather than later (in the next two weeks) – especially if you want to ensure your debt and retirement plan is in order and you’re able to optimize your equity with the best possible strategy. We can be reached directly at callateam@dominionlending.ca or 604-802-3983.

The Office of the Superintendent of Financial Institutions (OSFI) sent ripples through the industry March 19th, releasing “draft recommendations” for all federally regulated banks to follow.

We have now learned that OSFI intends on getting these guidelines finalized by the end of June or early July. While implementation may be immediate, it’s most likely within a month or two of the official announcement. Bank CEOs have been informed of these timeframes and are beginning to prepare for what could be a large shift in the way the big banks underwrite mortgages. Here are the highlights from the guidelines:

. Home Equity Line of Credit mortgages reduced from 80% to 65% financing.

. Lines of credit to be either amortized, or amortized after a specified period of time (no more never-never plans).

. More stringent income requirements for self-employed borrowers.

. All mortgages to be reviewed upon renewal (currently as long as payments are made, it’s unlikely for a bank not to offer you a renewal).

. Funds from cash-back mortgages are not allowed as a source of down payment (currently only a handful of lenders allow this, but it does mean that “zero down” mortgages are technically available, but with some restrictions).

. Use of the five-year posted “benchmark” to qualify uninsured terms of one to four years and all variable terms (currently most lenders use a three-year posted or a lower rate to qualify uninsured mortgage).

. More limits on underwriting exceptions (many recent applications don’t fit the ever shrinking “boxes” with the banks, which means fewer common-sense deals will get approved).

. Home insurance to be included in debt-servicing ratios (it’s currently not included).

. More public disclosure of statistics pertaining to institutions’ mortgage practices.

. More accountability from management to ensure lenders are adhering to their underwriting guidelines.

Since announcing the proposed guidelines, OSFI has reviewed comments from the industry and is changing its opinion on a few items. First, it’s becoming more likely that 65% financing on lines of credit is a done deal, although officials are probably scrapping the idea of a forced amortization on these credit lines. But the most important comments from OSFI’s review of the feedback has been that its likely to withdrawal the requirement to re-qualify at renewal, which has given many in the industry a sigh of relief.

Although many of these above guidelines sound reasonable, having all of these changes come into effect at the same time could have a negative impact on housing markets short term. Potential purchasers may find it more difficult to obtain financing, and investors may find it harder to leverage existing assets to acquire additional properties.

Many in the industry feel that these changes are the government’s way of slowing down accumulation of secured debt and the housing market without raising interest rates.

The Bank of Canada announced June 5th that there would be no change in the prime rate, and the consensus is no further changes until early 2013. This decision pointed to ongoing concerns with the European (and, therefore, worldwide) markets, as well as a relatively strong Canadian dollar and inflation levels at comfortable levels. Until the Euro is more stable, money will continue flooding from European markets to North American markets, keeping interest rates low for borrowers.

For borrowers, this presents a double-edged sword. No longer should you be worrying about getting the best rate on your mortgage (many lenders are currently offering 3.09% on five-year fixed rates), but you should be more concerned about getting the money at all. If you’re planning on making a purchase this year, the window (especially for investors) may be closing soon.

What’s interesting is that these rules are going to be affecting all federally regulated institutions, so we may find that credit unions may be able to offer niche products (like lines of credit above 65%) that major banks won’t be able to offer.

Credit unions will often follow federal guidelines, but may feel that their risk to lend to high-quality clients may not be as severe as OSFI feels and continue operating on their current guidelines.

Courtesy of Canada.com

Questions? The Angela Calla Mortgage Team is here to help. Tune into The Mortgage Show Saturdays @ 7pm on CKNW

Angela Calla, AMP

Dominion Lending Centres

callateam@dominionlending.ca 604-802-3983

3 reasons you need an equity line of credit after your mortgage is paid off

General Angela Calla 13 Jun

One thing we can count on in the mortgage industry is change. In learning how to optimize the market to your advantage, it may be wise to get a line of credit today to protect you from having to sell your house before you’re ready. Canada’s banking regulator has stepped in with changes that may take some of the edge off the central bank’s worries about household debt. The Office of the Superintendent of Financial Institutions (OSFI) plans to cut the amount of debt available through home equity lines of credit (HELCOs). The current limit of 80% of value will be chopped to 65%.

The following three points outline why it may be important to apply for a secured home equity line of credit today:

1. Changes are coming for secured lines of credit that will reduce consumers’ qualifications by 30%. Much like we have for insured mortgages where people have to qualify at much higher rates, the last thing you want is not to be able to access your own home equity if you have worked diligently to pay off your mortgage.

2. You deserve to not overpay to access your equity and be forced to downsize (while the reverse mortgage option is viable for some, it’s not always the best solution).

3. People are living longer and are being forced back into the workplace longer. Not everyone can count on the pensions or stock equity we may have had at one point. It’s time to get your asset working for you. Don’t forget that if equity is used for an income-generating investment, you can also take advantage of the tax benefit for the interest paid.

Setting yourself up for success is usually the result of what you know. With these upcoming changes, this little bit of knowledge can go a long way when your planning matters most. I will offer unbiased help and assist you in putting together the best plan to use your equity to your advantage!

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

www.angelacalla.ca

 

When will the VRM be a good option again-Angela Calla

General Angela Calla 12 Jun

The best options when it comes to selecting the right mortgage term will always be different, and can change several times throughout your term. The Angela Calla Mortgage Team will always keep you informed of your very best options in real time.

Historically, 88% of the time, the variable-rate mortgage (VRM) has helped borrowers get ahead significantly. But today may be part of the 12% of the time when fixed rates are the way to go. Here’s why:

  1. 1.       Cost of Security – the payment difference on a $300,000 mortgage. The payment for VRM is $1,246 and fixed is $1,309. The difference of $63 a month is a low cost of security for 5 years to ensure your payment does not increase.
  2. 2.       Risk of inflation – if you follow the Bank of Canada (BOC), it suggests that one or two rate hikes towards the end of this year would be suitable. If the BOC carried through on its suggestions, this would mean your VRM payment would be higher than the fixed rate you could get today.
  3. 3.       Today’s low rates will be history – once rates rise, although you can lock in with most variables at no cost, you lock in at the fixed rates at that time, not the rate you could have gotten initially. Rates have nowhere to go but up.

When will a VRM be attractive again? Not until prime rises! When rates go up, generally the discounts also increase. The rule of thumb is the best time to consider a VRM is when you can secure a discount below prime at 0.40 or more. Some exceptions will always apply. The Angela Calla Mortgage Team is always here to help without bias as we are with you throughout the life of your mortgage.

If you would like us to review your options, sign up here www.angelacalla,ca/contact

Angela Calla Mortgage Team

604-802-3983

callateam@dominionlending.ca

Own in Vancouver for $30 a day as heard on @angelacalla @cknw from @willingtwo

General Angela Calla 12 Jun

As heard on this weeks Mortgage Show on CKNW with Angela Calla Saturday June 16th 2012. To get pre approved for this property or any other purchase email us at callateam@dominionlending.ca or call 604-802-3983

This weeks deal of the week has been brought to you by:

http://rboies.mlslink.mlxchange.com/?r=1213290184&id=363434333136.312

Robert Boies
Royal LePage Coronation West
cell: 604 341 3009 t: willingtwo
E-mail: robboies@royallepage.ca
www.willingsellerwillingbuyer.com

Please note that properties like this move quickly and getting set up with Rob Boies directly robboies@royallepage.ca will keep you abreast of all of these types of oppertunities meeting your speciafications

Thanks for visiting

Angela Calla, AMP

3 Questions: If you should add outside debt to your mortgage by Angela Calla

General Angela Calla 11 Jun

With the demands of our everyday lives, it’s really easy for our credit cards and lines of credit to get out of hand.

What we thought we would use “once in a while” or “just until the next paycheque” can sometimes turn into a growing battle. If this sounds familiar, you’re not alone. Statistics say that as many as 6 out of 10 Canadians live paycheque to paycheque. Before you know it, you could be right at your credit card and credit line limits. The shocker comes when you take a closer look at one of your credit card statements and see that it can take decades to pay off! And in today’s tight credit environment, it’s best not to wait until your mortgage renewal to consolidate this high interest debt. The good news is if you have equity in your home, you can kiss that credit card or line of credit commitment goodbye.

Ask yourself these 3 questions to see if it’s worth it to add your outside debts to your mortgage and stop the cycle of debt if your payments outside of your mortgage are at least $300 per month. In the next 3 months are you receiving:

1.       The proceeds from the sale of an asset (car, trailer, artwork, etc)?

2.       A guaranteed work bonus or money you lent someone returned to you

3.       An inheritance

If your answer is no to these 3 questions, then it’s better to stop the cycle by rolling this debt into your mortgage (if you have enough equity in your home). Using the $300 a month example (which is usually a $10,000 debt), by refinancing your mortgage, you’ll save $250 a month you can bank so as a cushion in the event another sudden expense comes up, instead of charging it! 

Angela Calla, AMP
Mortgage Expert
Host of “The Mortgage Show” on CKNW AM980 Saturdays at 7pm

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

Facebook: Angela Calla Team, AMP Your Mortgage Expert
Toll Free: 1-888-806-8080
Email: acalla@dominionlending.ca
Apply Online: www.angelacalla.ca
CLICK HERE to Watch My Video Presentation