July Newsletter

General Angela Calla 3 Jul

Welcome to the July issue of my monthly newsletter!

Welcome to July, the month of the festival here in Canada! There’s something for everyone, from the Calgary Stampede to Caribana in Toronto and Shambhala in Salmo or even Just For Laughs in Montreal. Or maybe you’re dreaming of getting away from it all – making this newsletter perfect for you!

This month we’re covering vacation homes and backyard projects, both of which will help you escape and unwind.

This month’s fun fact: Did you know both the lightbulb and insulin were invented in July (in 1874 and 1922 respectively) – right here in Canada?

Dreaming of a Vacation Home?
Here’s What You Need to Know?

If you’re interested in buying a vacation home, there is a lot to consider. A good first step to purchasing any vacation home is to think about your 5- and 10-year plan.

Will you get enough use out of it?

Do you have other more immediate or important financial goals?

What’s the opportunity cost?

If you’re set on the vacation home, but don’t plan on paying cash for the property, the next step will be to plan how to finance it. Here’s what to ask yourself:

  • Do you have enough saved for a downpayment? A second property could need anywhere between 5-20%+ downpayment. Some factors to consider are if it’s winterized, mortgage insurance requirements in relation to the purchase price, etc.
  • Can you afford the purchase? Your income will have to be such that you can take on the additional debt, so consider calculating your debt servicing ratios and see how much room you have within your current situation. Use 39% for GDS and 44% for TDS ratios as the maximum to secure funding from a bank.
  • Will the location/property be eligible for financing? Remote locations or properties outside Canada may not qualify for a mortgage, so you might need to get creative.
  • Will it be owner-occupied or an investment property? Depending on who lives in or uses the dwelling, there will be different mortgage and tax implications.

If you’re in a good place to move forward with purchasing a vacation home, the next step is selecting a location. A few considerations:

  • Current and future development of the area
  • Municipal services available
  • Transportation to and from your property
  • Long term property value
  • Seasonal access issues

Another big factor in purchasing a vacation home is deciding what will happen to it while you’re not there. Will you rent it out? Will you have a property manager? What’s needed to keep the insurance valid on the property?

If you’re not sure about any of what you’ve just read, a great first step is to get in touch! As your mortgage broker, I can help you calculate your debt servicing ratios, determine what you’re eligible for, and come up with creative financing solutions if needed. We can look at second mortgages, reverse mortgages, and other options to get you into the property of your dreams.

Summer Backyard Projects

Summer in Canada goes by fast! Make the most of it by spending time in your outdoor space. There are plenty of projects you can undertake to help you enjoy the space you have even more, whether it’s a small patio or a big yard.

 

Here are some suggestions!

For Patio Space Only:

  • Add tiles to the concrete flooring for a grass, panel or wood look (here are a few options)
  • Install a pull-down movie screen (or get a folding stand) and add a mini projector to watch movies outside
  • Get some planters that hang over your railing and grow an herb garden
  • Give it some pizazz by wrapping twinkle lights around the railings
  • Furnish with a baby-que to maximize BBQ season and your space (Weber’s Q series might have something that strikes your fancy)

For Small Yards:

  • Add small-footprint and storage-friendly games like axe throwing or a mini putt hole for some fun
  • Buy a heating lamp for your seating arrangement and make nights more enjoyable
  • Build or install a garden box and grow tomatoes, cucumbers, or other veggies
  • DIY a bird bath from glassware – a vase, a platter and some crazy glue are all you need to make a pedestal style option (and you might already have everything you need at home!). Here’s how!

For Big Yards:

  • Build a catio (cat patio for those not yet in the know) for your feline friends to enjoy the outdoors safely
  • Install a permanent fire pit with stones, a fire ring, and even smoke prevention cutouts – like this!
  • Pave or tile a seating area for outdoor dining and entertainment

Not enough inspiration here to quench your outdoor project thirst? Take a look through Home Depot’s backyard ideas, complete with materials and DIY instructions to make them happen.

I hope you’re able to get outside and enjoy the nice weather while it lasts. See you back here in August!

Economic Insights from Dr. Sherry Cooper

Canadian economic data have come in weaker than expected since early May. Despite this, markets are not looking for another rate cut in July unless core inflation falls meaningfully. Amid a sizeable trade shock, lingering uncertainty, and a potential war with Iran,  the economy’s growth outlook is softer than most forecasters predicted a year ago.

The unemployment rate continues to rise, consumer confidence plummeted in the spring and hesitancy around business investment remains. Despite aggressive easing by the Bank of Canada, housing remains wobbly.

The BoC began lowering interest rates well ahead of many global peers, with a significant 225 basis points of monetary policy easing already in the pipeline. Yes, the BoC was unnerved recently by firmer-than-expected inflation in April. But, critically, that upward surprise likely had more to do with resilient consumer spending, particularly on non-housing-related discretionary services, than with the impact of tariffs.

We also expect a limited impact on inflation from Canada’s retaliatory import tariffs, which means that monetary policy will remain flexible and act as a traditional buffer for the economy. The central bank will need to consider potential additional support that could come from government spending, but overall, it has the room to cut interest rates further if needed.

There are two streams of fiscal support in play in Canada that produce upside risks worth monitoring.

First, Canada maintains meaningful capacity to buffer against economic shocks if required, regardless of the political landscape. Government net debt levels are still low relative to the size of the economy compared to other advanced economies. That is less true compared to the shrinking number of triple-A-rated economies. Still, provincial and federal governments have signalled willingness to step in and support trade-impacted sectors if needed.

This fiscal room provides an important backstop for the economy that shouldn’t be underestimated, particularly compared to its global peers (and the US). Moreover, it is a shift from earlier this year when it appeared Canada might need to buffer a trade shock alone. Now, global peers are engaged in fiscal expansion that helps to maintain Canada’s relative fiscal place.

A formal spending plan has yet to be presented by the newly elected federal government, but there has been movement on a range of items that can provide support to 2025-2026 growth. Action on interprovincial trade barriers could pay long-run dividends, helping to support investment and productivity growth. Tax deferrals, loan programs, and employment insurance measures are available to help trade-related sectors through shorter-run disruptions. And now announcements related to defence could add significantly to growth in 2026.

Second, the US-induced trade shock has turned global attention towards the needs of the global economy in the future, and which countries are best equipped and positioned to support them. Canada’s resources—agriculture, energy, and critical minerals—are increasingly well positioned to support the needs of the global economy, particularly as it seeks to expand AI/data and defence spending.

Canadian exporters appear to be less targeted with specific US tariffs, but they are still tied to the performance of the US economy, particularly in the heavily trade integrated manufacturing sector.

This was a problem for Canada in the immediate aftermath of Liberation Day on April 2. Broad-based global tariffs imposed by the US on all of its trade partners raised the risk of a US recession and, therefore, a Canadian one. However, the de-escalation of US tariffs supports a slow but resilient outlook for the US, improving Canada’s prospects as well.

Problematically, the US’s resilience still appears to mostly come from the exceptionally large government budget deficit and household spending on services with little direct Canadian import content.

In the US industrial sector—where trade ties are much closer—manufacturing employment was down 0.7% year-over-year in May. Early data on job openings shows hiring demand continues to slow as aggressive tariffs on most of the world push costs higher, adding to uncertainty. Still, we do not expect a US recession this year, and that is good news for Canadian exporters who are still, in most cases, able to access the US market duty-free.

The Federal Reserve remained on the sidelines this month despite repeated demands for a rate cut by President Trump. In recent meetings, inflation concerns have precluded the FOMC from reducing rates, although the ‘dot-plot’ portends two rate cuts this year.

In a recent speech, BoC Governor Macklem held to the script, saying that inflation is a threat. He concluded, “My colleagues on the Governing Council and I agreed there could be a need for a further reduction in the policy interest rate if the effects of US tariffs and uncertainty continued to spread through the economy.” But, the latter is still a big “if” in the BoC’s mind. We’ll get two more CPI reports before the July decision (the May report is out next week), and they’ll probably need to see two good ones to consider a rate cut. The market is currently pricing in 25 bps of easing by the end of the year.

“If the current tariffs and counter-tariffs remain in place, historical experience suggests passing through about 75% of the costs of tariffs over roughly a year and a half,” he said. Macklem confessed that underlying inflation is “firmer” than expected, and “If the recent firmness in underlying inflation were to persist, it would be more difficult to cut the policy rate.”

That said, he admitted that the Bank’s preferred measures of inflation (trim and median) “may be exaggerating a little bit” to the upside. Macklem also underscored the negative structural shock Canada must deal with in an increasingly uncertain world. The takeaway from these comments and the recently released BoC minutes was that the Bank is biased in cutting rates again if inflation comes back down and unemployment keeps climbing. How much or how soon is anyone’s guess.

Housing activity continues to disappoint even as the May data showed a modest uptick in sales. New listings have surged, increasing the inventory of unsold homes, particularly condos in the GTA and, to a lesser degree, British Columbia.

The Bank of Canada expected to cut rates further before the end of the year – and with the occasional encouraging sign of progress in US-Canada trade talks – hopes are high that more buyers will step off the sidelines soon.

Bank of Canada governor Tiff Macklem described Prime Minister Mark Carney and US President Donald Trump’s agreement to finalize a new trade and security deal within 30 days as “very welcome news.” However, he also flagged the continuing risk posed to the Canadian economy if tariffs remain in place.

We expect housing market confidence to gradually rebuild as tariff de-escalation lifts some of the uncertainty that hindered activity earlier this year. Still, a tepid labour market and rapidly falling population growth will likely continue hindering short-term market prospects.

Our growth forecasts have been moderately upgraded for the US and Canada. Changes to the Canadian outlook were primarily driven by an increasing likelihood that additional government fiscal deficit spending will add more significantly to growth tailwinds later this year and into 2026.

Canada is also the US’s largest exporter of steel and aluminum products. Existing excess domestic capacity in the US (often at much higher costs) could help, but won’t nearly be enough to fill the supply gap. That means the cost of additional levies will more likely be paid by US buyers than foreign exporters (like Canada).

Canada remains better positioned among major U.S. trade partners as it faces one of the lowest tariff rates thanks to CUSMA exemptions. The first round of trade data post-Liberation Day in April confirmed that nearly 90% of Canadian exports (by our count) continued to access the US market duty-free.

• We have upgraded our Q2 US gross domestic product forecast from 1% to 2.5% annually as we expect a surge in imports in Q1 (a statistical quirk) to reverse. Average growth in the first half of the year is likely a better gauge of economic activities, but it is still slowing. However, The slowing pace is more consistent with the gradual cooling in labour markets than with the beginning of a recession.

• The Canadian GDP growth forecast has been revised higher in 2026 by 0.3 percentage points from 1 to 1.3%. The new Liberal government has announced tax cuts and additional defence spending to meet NATO commitments this fiscal year. Expanded deficit spending will add to GDP growth later in 2025 and into 2026.

• Canadian unemployment rate projections have changed a little. The unemployment rate rose to 7% in May, but early plateauing in job openings suggests hiring conditions have stabilized after softening. It leaves us comfortable with limited further deterioration in the labour market and the unemployment rate to peak at 7.1% in Q3.

• Canadian population growth slowed substantially in Q1 2025, another dampener on housing.

 

Angela Calla is a mortgage renewal and debt elimination expert with over 20 years of industry experience. She is also a multi-award-winning mortgage professional. Since beginning as a mortgage broker in 2004, Angela has helped thousands of Canadians optimize their mortgage strategies, eliminate debt, and build wealth through real estate.

She is the best-selling author of The Mortgage Code, which equips readers with the tools to make informed financial decisions. Additionally, she is the host of Canada’s longest-running finance radio show on CKNW, where she simplifies mortgage advice and empowers listeners to take control of their financial futures.

Angela has been recognized as Business Leader of the Year (2020) by the Tri-Cities Chamber of Commerce and Entrepreneur of the Year (2019) by the City of Port Coquitlam. She is also a sought-after speaker and educator, delivering accredited training for real estate boards across Greater Vancouver.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

Watch My Global News Interview – See What Homeownership Options May Apply to You!

General Angela Calla 17 Jun

I’m excited to share my recent appearance on Global News Morning, where I discussed ways Canadians can save thousands with homeownership — including GST and PTT exemptions, CMHC Eco Plus rebates, and special mortgage programs for, medical professionals, and the self-employed.

Click on the image below to watch the clip.

If you’re wondering what options may apply to you or someone you know, let’s connect and create a personalized plan.

Let’s make homeownership work for you!

 

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

3 Smart Money Moves for Today’s Economy – As Heard on Vancouver Consumer on CKNW

General Angela Calla 28 Apr

I had the pleasure of joining Vancouver Consumer on CKNW to share some key strategies to help Canadians thrive financially in today’s economy. Over three segments, we explored actionable steps everyone can take to build a stronger financial future.

Here’s a quick recap:

Review Your Mortgage and Debt Strategy
With rates and lending rules constantly changing, reviewing your mortgage annually is critical. Consolidating high-interest debt into your mortgage can save hundreds to thousands of dollars each month — freeing up cash flow and improving your financial health.
Make Your Money Work for You
Even small, consistent investments can grow significantly over time. Whether it’s maximizing RRSPs, TFSAs, or employer-matching programs, it’s important to have a plan that aligns with your goals. Every dollar saved today multiplies your financial security tomorrow.
Plan Ahead for Renewals and Life Changes
Don’t wait until the last minute to plan for your mortgage renewal or a major life change. A proactive approach helps you access the best options and avoid costly penalties or missed opportunities.

You can read a full breakdown of these tips here:

3 Smart Money Moves

Catch the full conversation on the podcast here:

Listen on Spotify

Have questions or want a personalized review?

Reach out to the Angela Calla Mortgage Team:

Email: callateam@countoncalla.ca

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

The Bank of Canada holds rates steady in the face of tariff uncertainty

General Angela Calla 16 Apr

Bank of Canada Holds Rates Steady In The Face Of Tariff Uncertainty–More Rate Cuts Coming
The Bank of Canada held its benchmark interest rate unchanged at 2.75% at today’s meeting, as expected by half of the market, to mark the first hold following 225 basis points of cuts in seven consecutive decisions. The governing council noted that the unpredictability of the magnitude and duration of tariffs posed downside risks to growth and lifted inflation expectations, warranting caution regarding the continuation of monetary easing.

The higher uncertainty stemmed from the United States’ lack of a clear tariff path, prompting the BoC Governing Council to present two economic scenarios in its latest Monetary Policy Report. Should the US limit the scope of its tariffs on Canada, the BoC expects growth to temporarily weaken and inflation to hold near the 2% target. Should the US proceed with an all-out trade war with Canada and China, the BoC has pencilled in a recession this year, and inflation rising temporarily above 3% next year.

Of course, as the Bank stated in its press release, “Many other trade policy scenarios are possible. There is also an unusual degree of uncertainty about the economic outcomes within any scenario, since the magnitude and speed of the shift in US trade policy are unprecedented.”

The statement says, “Serial tariff announcements, postponements, and continued threats of escalation have roiled financial markets. This extreme market volatility is adding to uncertainty. Oil prices have declined substantially since January, mainly reflecting weaker prospects for global growth. Canada’s exchange rate has recently appreciated as a result of broad US dollar weakness.”

The Bank says in these very unusual times, “In Canada, the economy is slowing as tariff announcements and uncertainty pull down consumer and business confidence. Consumption, residential investment and business spending all look to have weakened in the first quarter. Trade tensions are also disrupting recovery in the labour market. Employment declined in March and businesses are reporting plans to slow their hiring. Wage growth continues to show signs of moderation.

Inflation was 2.3% in March, lower than in February but still higher than 1.8% at the time of the January Monetary Policy Report (MPR). The higher inflation in the last couple of months reflects some rebound in goods price inflation and the end of the temporary suspension of the GST/HST. Starting in April, CPI inflation will be pulled down for one year by the removal of the consumer carbon tax. Lower global oil prices will also dampen inflation in the near term. However, we expect tariffs and supply chain disruptions to push up some prices. How much upward pressure this puts on inflation will depend on the evolution of tariffs and how quickly businesses pass on higher costs to consumers. Short-term inflation expectations have moved up, as businesses and consumers anticipate higher costs from trade conflict and supply disruptions. Longer-term inflation expectations are little changed.

Governing Council will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs. Our focus will be on ensuring Canadians continue to have confidence in price stability through this period of global upheaval. This means we will support economic growth while ensuring that inflation remains well-controlled.

The Governing Council will proceed carefully, paying particular attention to the risks and uncertainties facing the Canadian economy. These include the extent to which higher tariffs reduce demand for Canadian exports, how much this spills over into business investment, employment, and household spending, how much and how quickly cost increases are passed on to consumer prices, and how inflation expectations evolve.

Monetary policy cannot resolve trade uncertainty or offset the impacts of a trade war. What it can and must do is maintain price stability for Canadians.”
Bottom Line

The US is determined to impose worldwide tariffs, disproportionately hitting Canada, Mexico, and China, the US’s top trading partners. This is a misguided neo-Mercantilist policy. Mercantilism assumes that the global economic pie is fixed, so if one country prospers, another must fail. This idea of a zero-sum game was debunked in the 18th century by Adam Smith and others who showed that if countries have a competitive advantage in various products and services, all are better off by producing and trading those products with the rest of the world. It is not a zero-sum game. The economic pie grows with trade. This was the idea behind globalization and the USMCA free trade agreement.

Given Canada’s vulnerability to tariffs, the economy will suffer more than the US, which has a relatively closed economy (where exports are a small proportion of GDP). Prices will rise depending on the duration and size of the coming tariffs, but mitigating the inflation will be the weakness in economic activity. Stagflation, a buzzword from the 1970s, is back in the lexicon.

We expect the BoC to resume cutting the policy rate in 25-bps increments until it reaches 2.0%-to-2.25% this summer, triggering a rebound in home sales. Layoffs and spending cuts will dampen sentiment, but lower interest rates will bring buyers off the sidelines. Housing inventories have risen sharply with new condo supply and a marked rise in the new listings of existing homes, and home prices are falling.

Article courtesy of Dr. Sherry Cooper, Chief Economist – Dominion Lending Centres

 

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

Buying a Property on Leased Land vs. Fee Simple: What You Need to Know

General Angela Calla 16 Apr

When purchasing real estate, most people assume they’re buying the land and the home together. That’s called fee simple ownership, and it’s the most common form of property ownership in Canada. However, in some areas—especially near waterfronts, on First Nations land, or in resort communities—you might come across homes built on leased land.

So what does that mean for you as a buyer? Let’s break down the pros and considerations of purchasing a property on leased land.

What is Leased Land?

With leased land, you’re buying the home or building but not the land underneath it. Instead, you lease the land from a landlord (which could be a private owner, a government entity, or a First Nations band) for a set period—often 20, 50, or even 99 years.

Pros of Buying on Leased Land

1. Lower Purchase Price

Leased land properties are often more affordable than comparable fee simple homes, allowing access to more desirable locations or larger homes within your budget.

2. Potential Tax Savings (subject to legal advice at time of purchase)

Depending on the nature of the lease and property, you may not be required to pay GST on the purchase, and in some cases, the Property Transfer Tax (PTT) may not apply. These savings can be significant—especially for higher-value properties.

3. Restrictions

Leased land properties may be exempt from disallowing short-term rentals like Airbnb,—great for buyers seeking flexibility in ownership .

4. Opportunity to Own in Prime Locations

Leased land is common in waterfront communities, resort areas, or urban hubs. If you’ve dreamed of lake views or vacation-style living, this could be your in.

5. Less Property Maintenance

In certain leased land developments, the landowner handles common area maintenance or landscaping—similar to strata—reducing your personal upkeep responsibilities.

Considerations to Keep in Mind

1. Financing Can Be Tricky

Not all lenders finance homes on leased land. Terms may be stricter, down payments might be higher (often 25% or more), and some lenders will only finance if the lease has a long enough term remaining—usually at least 20–25 years.

2. Lease Expiration = Uncertainty

When the lease ends, you may have to renegotiate terms, vacate, or remove your home—depending on the lease agreement. Make sure you fully understand the length and renewal terms before purchasing. This will also limited your amortization options for financing.

3. Limited Appreciation Potential

Because the land isn’t yours, homes on leased land may not appreciate at the same rate as fee simple properties. That can impact your long-term investment return.

4. Monthly Lease Fees

In addition to your mortgage and taxes, you’ll pay a monthly lease or land rent. These fees can increase over time and need to be factored into your overall housing costs.

5. Legal Advice is Essential

Every lease is different. It’s absolutely essential to consult a real estate lawyer before purchasing to review the lease terms, confirm tax implications, and understand how the lease affects your o6. Possible Estate Planning Implications

Leased land can impact estate planning, including inheritance, transferability, and future value. For some families, this may offer a streamlined way to manage assets—though legal advice is crucial here to ensure proper planning. ownership and rights.

Who Might Leased Land Be Right For?

Buyers looking for affordability in high-demand areas
Snowbirds or part-time residents
Retirees who want a low-maintenance lifestyle
Investors with a short- to medium-term horizon and a clear exit plan

Final Thoughts

Purchasing a home on leased land can be a smart move—but it comes with unique considerations. It’s not “better” or “worse” than fee simple ownership; it’s just different. What matters is how it aligns with your financial goals, lifestyle, and long-term plans.

If you’re curious whether a leased land property is right for you—or you’ve found a listing and want to understand your financing options and legal considerations—we’re here to help.

Contact us at callateam@countoncalla.ca or 604-802-3983, and we’ll walk you through your options and connect you with trusted professionals to make sure you feel confident in your purchase.

 

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

Better than expected Canadian inflation in March may not be enough to trigger another BoC rate cut

General Angela Calla 16 Apr

Weaker Than Expected Inflation May Not Be Enough to Trigger Another Bank of Canada Rate Cut
Canadian consumer prices rose 0.3% in March (or remained flat when seasonally adjusted), which was lower than expected, reducing the annual inflation rate by 0.3 percentage points to 2.3%. This decrease in headline inflation followed the complete removal of the GST holiday in March.

There was a significant drop in travel tour prices and airfares compared to the previous year, as Canadians reduced their travel to the U.S. during peak times. Additionally, gasoline prices fell by a modest 1.8%, with further declines expected in April, likely bringing the headline inflation rate below 2%.

The core measures largely met expectations last month, with the trimmed rate decreasing moderately to 2.8% and the median rate holding steady at 2.9% year-over-year. Although these annual numbers remain high, the monthly results were more encouraging, increasing by just 0.1% month-over-month on a seasonally adjusted basis. Moreover, their three-month trend eased to below 3%.

Prices excluding food and energy dipped slightly, reducing the traditional measure of core inflation to 2.4% from 2.9%. Travel tour costs dropped 8% month-over-month (or 4.7% year-over-year), and airfares fell 12% year-over-year. Cellphone service costs also decreased by 7% year-over-year. March saw the beginning of some Canadian counter-tariffs, leading to price increases in areas like sporting equipment, which rose 12.2% year-over-year. However, declines in travel and gasoline costs overshadowed these price upticks.

Shelter costs also showed signs of easing—rents slowed to 5.1% year-over-year from 5.8%, and mortgage interest costs reduced to 7.9% from 9.0%.

Bottom Line

This report will reinforce the Bank of Canada’s cautious stance on easing to mitigate the impact of tariffs. Canada experienced a break in rising inflation in March due to lower travel costs. The inflation impact of the trade war differs for Canada compared to the U.S., as Canadian tariffs are lighter, and the domestic economy is under more significant pressure.

The strengthening Canadian dollar helps reduce import prices, addressing one of the Bank of Canada’s inflation concerns. Gasoline prices fell sharply on April 1 following the removal of the carbon tax. They continued to decline due to dropping global oil prices, which may lead to a significant decrease in headline inflation next month. Despite these conditions potentially signalling a favourable situation for the BoC to cut rates, core inflation measures are still close to 3%, and ongoing trade war dynamics complicate policymaking decisions.

The odds of a ninth rate cut tomorrow are about even. Recent reports suggest that business and consumer confidence has deteriorated and that spending is slowing. Nevertheless, the central bank remains concerned about the inflationary impact of tariffs.

Even if the Bank does not cut rates in April, we will likely see three more 25-basis-point cuts this year, bringing the overnight rate down to 2.0%—300 bps lower than its peak last year.

Article courtesy of Dr. Sherry Cooper – Chief Economist at DLC

 

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

Canadian CPI Inflation Edged Upward in January Owing To Rising Energy Prices

General Angela Calla 24 Mar

Canadian Inflation Edged Upward to 1.9% Y/Y in January

 

In January, the Consumer Price Index (CPI) rose by 1.9% year over year (y/y), up from 1.8% in December. This rise was primarily due to an uptick in energy prices. Excluding gasoline, the CPI increased by 1.7% in January, down from 1.8% in December.

Higher energy prices, particularly gasoline and natural gas were the main contributors to this acceleration. However, these increases were somewhat countered by continued downward pressure on prices for items affected by the goods and services tax (GST)/harmonized sales tax (HST) break implemented in December. Notably, food prices fell by 0.6% year-over-year in January, marking the first annual decline since May 2017. This decrease was primarily driven by a significant drop in prices for food purchased from restaurants, which fell by 5.1%.

The CPI rose by 0.1% in January, compared to a 0.4% decline in December.

Energy prices rose 5.3% in January y/y, following a 1.0% increase in December. Specifically, gas prices increased 8.6% yearly in January, up from 3.5% in December. In Manitoba, gas prices rose by 25.9% due to the reintroduction of a provincial gas tax at a lower rate after its temporary suspension from January to December 2024.

Additionally, prices for new passenger vehicles increased by 2.3% year-over-year in January, compared to a 0.9% increase in December. In contrast, prices for used vehicles continued to decline in January, decreasing by 3.4%, although slower than the 4.1% decline observed in December. This marks the 13th consecutive month of year-over-year price decreases for used vehicles.
In January 2025, prices for food purchased from restaurants decreased by 5.1%. This decline was over three times greater than the previous record drop of 1.6% observed in December 2024.

Canadians also experienced lower prices for alcoholic beverages purchased from stores, which fell by 3.6% in January 2025 compared to January of the previous year, following a decrease of 1.3% in December.

Additionally, prices for toys, games (excluding video games), and hobby supplies dropped by 6.8% year over year in January after a decline of 7.2% in December.

Excluding indirect tax changes, inflation notably increased to 2.6% from 2.2% the prior month and a recent low of 1.5% last September. It was a similar story for core inflation—BoC’s main measures rose 0.2% m/m in adjusted terms, lifting both to 2.7% y/y (from 2.5% for trim and 2.6% for median). Over the past three months, both have risen at just over a 3% annualized pace, or just a touch above the BoC’s comfort zone. The Bank’s old CPIX measure of core, which removes eight volatile items and sales taxes, perked up to a 2.1% y/y pace but remains mild. Similarly, the breadth of prices rising above 3% is close to normal.

It’s a little less flashy, but more importantly, shelter inflation continues to grind down gradually. Rents posted their first monthly decline in more than two years (-0.1%), calming the annual increase to 6.3% (from 7.1% last month and a peak of 9% last spring). Mortgage interest costs eased to 10.2% y/y from 11.7% in December and the plus-30% pace in 2023. Offsetting those milder trends were big pick-ups in many utility charges.
Bottom Line

Traders in overnight swaps have reduced their expectations for a quarter-percentage point rate cut by the Bank of Canada at its next meeting on March 12, lowering the odds to just over one-third, down from a nearly even chance last week.

Bank of Canada Governor Tiff Macklem has successfully brought inflation under control. However, an impending tariff war between the U.S. and Canada poses a new threat to his efforts to maintain price stability.

Policymakers eased up on the pace of rate cuts in January after aggressively lowering borrowing costs last year, but they remain uncertain about the future direction. U.S. President Donald Trump has indicated plans to impose tariffs of up to 25% on Canadian goods in March, while Prime Minister Justin Trudeau’s government has promised to retaliate. A tariff war would likely compel the central bank to adjust its rate-cutting strategy to prepare the economy for the potential impact of tariffs on consumer prices.

The central bank will next determine the benchmark overnight rate on March 12. Economists are divided into two viewpoints: some anticipate further rate cuts, while others expect the bank to pause amid increasing uncertainties. Governor Tiff Macklem has expressed a desire to bolster economic growth and expects inflation to remain close to the 2% target in the coming months, influenced by fluctuations in global energy prices. Currently, the odds favor another 25 basis points rate cut in March.
Dr. Sherry Cooper
Chief Economist, Dominion Lending Centres

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

Canadian GDP Growth Accelerated in Q4 to 2.6% Compared to an Upwardly Revised 2.2% in Q3

General Angela Calla 24 Mar

Canada Finished 2024 on a Stronger Note, But Tariffs Remain a Concern

This morning, Statistics Canada released the GDP data for the final quarter of last year, showing a stronger-than-expected increase in household final consumption spending, exports, and business investment. However, drawdowns of business inventories and higher imports tempered the overall growth.

In Q4, the Canadian economy accelerated, with real GDP growth reaching a solid 2.6% annualized, which was well above consensus and the Bank of Canada’s latest forecast. The growth was broad-based, led by a 5.6% increase in consumer spending. Consumer spending climbed 3.6% annually for three of the four quarters in 2024, supported by rate cuts in the second half of the year. Year-over-year, consumer outlays rose by 3.6%, marking the best pace since 2018 (excluding the pandemic). Although the tax holiday had a positive impact, it took effect very late in the quarter, suggesting that momentum was already strong before that. The housing sector also showed solid growth, increasing by 16.7%, the best gain in nearly four years, driven by a significant rise in resale activity. Business investment also contributed positively, rising by 8% due to investment in machinery and equipment.

However, inventories were a significant drag on growth, subtracting 3.3 percentage points, while net exports added 0.6 percentage points. Final domestic demand growth was recorded at 5.6%, the best quarter since 2017, excluding the pandemic. Notably, the growth figures for Q2 and Q3 were revised upward: Q2 is now at 2.8% (previously 2.2%), and Q3 is now at 2.2% (previously 1.0%).

December’s GDP came in slightly below expectations at +0.2%. Retail sales significantly contributed to this gain, increasing by 2.6% due to the tax holiday, while utilities also experienced a notable increase of 4.7% owing to more typical winter weather. The January flash estimate showed a solid rise of +0.3%, likely reflecting activity that was front-loaded ahead of potential tariffs. Nonetheless, this indicates a promising start to Q1 and 2025.

Bottom Line

The Canadian economy demonstrated strong momentum in the latter half of 2024, driven by aggressive rate cuts from the Bank of Canada that stimulated economic activity. The growth rate significantly exceeded the central bank’s forecast, coming in at 2.6% compared to the expected 1.8%. Overall growth for 2024 was also better than anticipated, at 1.5% versus the forecasted 1.3%. However, much of this growth occurred before the escalation of tariff threats.

This data may support the central bank’s decision to pause its easing cycle at the upcoming meeting on March 12. However, looming tariff threats from U.S. President Donald Trump, including a 10% tariff on Canadian energy and a 25% tariff on all other goods set to take effect on Tuesday, could complicate the bank’s decision-making.

The threat of tariffs may also account for the muted market reaction to the positive GDP report, which coincided with a U.S. report showing that the Federal Reserve’s preferred inflation gauge rose at a mild pace while consumer spending declined. On the day, Canadian government two-year bond yields fell by less than one basis point to 2.619% as of 9:10 a.m. in Ottawa, while the Canadian dollar slipped slightly, down less than 0.1% to C$1.4426 per U.S. dollar. Traders in overnight swaps assessed the odds of a rate cut on March 12 at about 43%, compared to a near 50% chance just a day earlier.

Article courtesy of Dr. Sherry Cooper, Chief Economist, DLC

 

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

March 2025 Newsletter

General Angela Calla 18 Mar

As the Spring season approaches, I have some updates for how to prepare your finances for the coming homebuying season. Plus, check out my fraud awareness tips as March is Fraud Awareness Month!

Spring Forward: Preparing Your Finances for the Home-Buying Season

Spring is one of the busiest seasons in the real estate market, with buyers eager to find their dream home before summer.

If you’re planning to purchase a home in Spring 2025, now is the time to get your finances in order.

Being financially prepared can help you secure a mortgage with favorable terms and make your home-buying journey smoother. Here’s how to get ready:

1. Check and Strengthen Your Credit Score

Your credit score is one of the most important factors in mortgage approval, influencing both your eligibility and the interest rate you’ll receive. A higher score can save you thousands over the life of your mortgage, so it’s worth taking the time to improve it.

  • Start by checking your credit report for errors, and if you spot any inaccuracies, dispute them immediately.
  • Pay down outstanding debts to lower your credit utilization ratio, which plays a big role in your score.
  • Avoid opening new lines of credit in the months leading up to your mortgage application, as this can temporarily lower your score.
  • By reaching out to me, I can help preserve your credit score as they will pull your credit report once to shop your application. Note: Multiple credit checks in a short period can lower your credit score.

2. Build a Strong Down Payment

The more you can put down up front, the better. A larger down payment can reduce your monthly mortgage costs, give you access to better loan terms, and, in some cases, eliminate the need for mortgage insurance.

  • Set a savings goal based on home prices in your target area so you have a clear plan.
  • Explore first-time homebuyer programs that offer down payment assistance—there are plenty of government and lender-based options.
  • Make saving a habit by automating deposits into a dedicated home savings account.
  • Avoid moving your money around to multiple accounts prior to applying for your mortgage. Lenders require a 90-day history of your down payment and a history of moving your money around can make this more difficult to easily verify your down payment.

3. Reduce Your Debt-to-Income Ratio (DTI)

Lenders use your debt-to-income ratio (DTI), aka GDS/TDS, to assess how comfortably you can handle a mortgage payment on top of your existing obligations. A lower DTI signals financial stability, improves your chances of loan approval and can expand your borrowing power.

  • Work on paying off high-interest debts or debts with high monthly payments, like credit cards and personal loans, to free up more of your income.
  • Hold off on making large purchases or taking on new loans, such as car financing, before applying for a mortgage.
  • If possible, look for ways to increase your income—whether through a raise, side gig, or freelance work—to strengthen your financial standing. Note self employed income or part time non guaranteed hours employment generally require a 2-year history.

4. Get Pre-Approved for a Mortgage

A mortgage pre-approval is a game-changer in a competitive market. It gives you a clear budget, shows sellers that you’re a serious buyer, and can even speed up the closing process.

  • Start gathering essential documents like tax returns, pay stubs, and bank statements—lenders and myself will need these to assess your financial health.
  • Reach out to me today for information to help you compare mortgage rates and terms, ensuring you get the best deal.
  • Take time to discuss your mortgage options with me, from fixed to variable rates, different term lengths, or special programs available to you.
  • Download my mobile mortgage app.

5. Budget for Additional Costs

The home price isn’t the only expense you’ll need to plan for. Homeownership comes with extra costs that can catch buyers off guard if they’re not prepared.

  • Closing costs typically range from 1.5% to 4% of the home’s purchase price, covering legal fees, land transfer taxes, and more. This is money you need on top of your down payment
  • Property taxes, Condo fees and homeowners’ insurance can add to your monthly expenses—make sure to factor them into your budget.
  • Set aside a fund for home maintenance and emergency repairs to avoid financial strain when unexpected expenses arise.

6. Research the Housing Market

Spring is a competitive time to buy, so being well-informed about the market can give you an edge.

  • Keep an eye on housing prices in your preferred neighborhoods to understand trends and pricing expectations.
  • Stay updated on current interest rates, as they directly impact affordability and your monthly payments.
  • Work with a trusted real estate agent who can help you navigate bidding wars, negotiate offers, and find the right home for your needs.

7. Consider Locking in an Interest Rate

Interest rates can fluctuate, and even a small increase can affect your monthly payments. If rates are expected to rise, securing a lower rate in advance could save you money over time.

  • Ask me about rate lock options and how long they’re valid for. Rate holds on average are valid for 120 days before they expire and a new rate hold period is requested
  • Compare fixed and variable rates to see which aligns best with your financial goals.
  • Keep an eye on Bank of Canada rate announcements and economic trends that could impact mortgage rates. Note: With recent Bank of Canada announcements variable rates which are tied to Prime are dropping.

Taking these steps now will set you up for success. The more financially prepared you are, the smoother the process will be—and the better your chances of landing your dream home at the right price.

Fraud Awareness Month: Scams to Avoid

Did you know? March is Fraud Awareness Month, making it the perfect time to learn how to protect yourself and your mortgage from fraud.

Understanding common mortgage scams and how to recognize warning signs can make all the difference in safeguarding your financial well-being.

Common Mortgage Fraud Scams

One of the most frequent types of mortgage fraud involves a fraudster acquiring a property and artificially inflating its value through a series of sales and resales. They then secure a mortgage based on the inflated price, leaving lenders and buyers at risk.

Red Flags to Watch For

Be cautious if you encounter any of the following:

  • Someone offers you money to use your name and credit to obtain a mortgage
  • You’re encouraged to provide false information on a mortgage application
  • You’re asked to leave signature lines or other sections of your mortgage application blank
  • A seller or investment advisor discourages you from inspecting the property before purchase
  • The seller or developer offers a rebate on closing that isn’t disclosed to your lender

Title Fraud: A Costly Scam

Another major concern is title fraud, which is a form of identity theft. This occurs when a fraudster, using false identification, forges documents to transfer your property into their name. They then take out a new mortgage on your home, collect the funds, and disappear—leaving you to deal with the consequences when your lender starts foreclosure proceedings.

How to Protect Yourself from Title Fraud

  • Always visit the property you’re purchasing in person.
  • Compare local listings to ensure the asking price is reasonable.
  • Work with a licensed real estate agent.
  • Be cautious of realtors or mortgage professionals with a financial stake in the deal.
  • Request a copy of the land title or conduct a historical title search.
  • Include a professional appraisal in the offer to purchase.
  • Require a home inspection to check for hidden issues.
  • Ask for receipts for recent renovations to verify legitimacy.
  • Ensure your deposit is held in trust for added security.
  • Consider title insurance—the best time to get it is before fraud occurs, not after.

Stay Vigilant and Take Action

Fraud can have devastating financial consequences, but staying proactive and informed is your best defense. If you suspect fraudulent activity, act quickly—report it to the authorities and take steps to protect your assets.

Knowledge is power, and by staying alert, you can keep your mortgage and finances secure.

Monitoring your credit report can also help stay ahead of any fraud activity pertaining to identity theft!

Economic Insights from Dr. Sherry Cooper

The outlook for the Canadian economy in the coming months presents a picture of cautious optimism with high uncertainty.  Economic indicators were expected to strengthen this year, driven by resilient consumer spending and a robust export sector.  Housing activity was poised to accelerate this year as well.

However, when the newly inaugurated US president began to threaten Canada with 25% tariffs at the end of January, home sales slowed markedly. However, challenges such as global market volatility and inflationary pressures could temper this growth.

The Bank of Canada will maintain its current monetary policy stance, carefully balancing interest rates to manage inflation while supporting economic activity. The housing market remains a key area of focus, with efforts to address affordability and supply constraints continuing to be critical. Immigration is slated to slow this year, particularly for non-permanent residents, which will ease the housing shortage. Rents have fallen sharply in recent months.

Rising costs, labour shortages, and potential import tariffs on building materials could hinder construction activity.

Tariff threats are real and unnerving. Exports account for roughly a third of Canadian economic activity. Canada sends 75% of its exports to the US,   led by energy, automobiles, and metals. Threatened attacks on these trade flows might initially spill into higher prices. Still, the primary impact would be to slow economic activity and increase unemployment, already at 6.6%, up from a cycle low of 4.8% in July 2022. In contrast, the US jobless rate is a mere 4.0% and GDP growth is a lot stronger than in Canada despite double the central bank rate cuts than south of the border.

In the event of a trade war, interest rates are more likely to fall as the BoC attempts to backstop the economy. This would decrease mortgage rates, with floating rates falling more than fixed-rate loans. About 1.2 million mortgages will renew this year, most of them at a higher rate, said real estate company Royal LePage in a report out this morning.

Almost 30% of those homeowners said they would choose a variable rate on renewal, up from 24% now on a floating rate. Sixty-six percent said they would renew on a fixed-rate loan, down from 75% now locked in.

Of those who expect their monthly mortgage payment to rise upon renewal this year, 81% said the increase would put a financial strain on their household.

There remains a good chance that Canada could avert a trade war. We’ve already taken action to tighten our border. The US could not easily replace the oil, hydroelectricity power, autos or aluminum it purchases from Canada. We are the largest export market for US products. Excluding oil exports, the US has a trade surplus with Canada. Revisions to the US, Canada, and Mexico trade deal, slated for next year, could be accelerated. The US has much bigger fish to fry than trade concerns with Canada.

On balance, interest rates are likely to fall further. Government actions to improve housing affordability and pent-up housing demand bode well for a housing revival this year. Canadian inflation is under control at about 2%, boosting the chances of additional rate cuts this year.

 

 

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

Save Thousands with CMHC Eco Plus & First-Time Buyer Incentives!

General Angela Calla 25 Feb

Unlock Big Savings with CMHC Eco Plus & PTT Exemptions

Are you planning to buy a home? If so, you may be eligible for CMHC’s Eco Plus program, which offers a 25% reduction in your mortgage insurance premium—either upfront or as a refund after funding, depending on the lender. We work with specific lenders who apply the savings immediately, so you don’t have to wait or go through the refund process yourself!

When combined with property transfer tax (PTT) exemptions for new construction, these savings can significantly improve your affordability.

How Does CMHC Eco Plus Work?

CMHC Eco Plus rewards buyers purchasing energy-efficient homes with a 25% rebate on their mortgage insurance premium. With the right lender, this can be deducted from your mortgage costs upfront. Otherwise, borrowers must apply for the refund after funding.

Real Savings Example

Let’s say you’re a first-time buyer purchasing a $1.1M home with 10% down:

Home Price: $1,100,000

Down Payment (10%): $110,000

Mortgage Amount (Including Insurance Premium): $1,014,990

CMHC Insurance Premium (4% standard rate): $44,990

CMHC Eco Plus Rebate (25%): $11,247

New Total Mortgage After Rebate: $1,003,743

Monthly Mortgage Payment @ 4.5% (30-year amortization): $5,070

Monthly Savings Due to Eco Plus: ~$60 per month

Total Savings Over 30 Years: ~$21,600

Additional Savings: Property Transfer Tax (PTT) Exemption

If you’re purchasing a newly built home, you may also qualify for a full or partial PTT exemption, which can save you over $18,000 upfront!

 Learn More About PTT Exemptions for New Builds: BC Government – Property Transfer Tax Exemptions

Why This Matters

 Lower Upfront Costs: Reduce your mortgage insurance premium with the right lender.

 Improve Affordability: A lower total mortgage can help with qualification.

 Long-Term Savings: Keep more money in your pocket over the years.

We Work with Specific Lenders to Get You These Savings Upfront!

Not all lenders apply the Eco Plus rebate at the time of funding—some require you to apply for the refund separately. We can connect you with lenders that offer the savings immediately, so you don’t have to go through the extra steps.

Looking for the Right Home? We Can Help!

Beyond securing the best mortgage options for you, we can also introduce you to trusted realtors who specialize in energy-efficient homes and new construction projects that qualify for these incentives.

Let’s Explore Your Options!

Our team is here to guide you through the process and ensure you’re taking advantage of every available savings opportunity.

 Contact Us Today for a Personalized Review

 Angela Calla Mortgage Team

 angela@countoncalla.ca

 604-802-3983

 www.angelacalla.ca

 Learn More About CMHC Eco Plus: CMHC Eco Plus Program

 

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

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