Moneylady

Moneylady Angela Wong-Liao, a RETIRED MORTGAGE PROFESSIONAL since April 1st 2022. She is committed because she believes in providing her clients excellent service.

Angela, The Money Lady has a total of 40 years of banking/mortgage financing experience which includes 28 years of banking experience with Scotiabank and 12 years of mortgage brokerage experience with Invis Inc., she can access to over 50 lenders including banks, trust companies, credit unions, non-bank lenders and private lenders to find the mortgage that meet your mortgage needs. Angela has exce

llent work ethic and professionalism, she is honest, knowledgeable, personable, flexible and committed to your mortgage needs. With her years of experience, she can effectively access your mortgage needs and provides you with an honest recommendation. She is knowledgeable because of her years of experience in the financial sector
She is personable because it is her nature as a warm and approachable person
She is flexible because she is mobile and works flexible hours, meeting you at locations convenient to you, she works evenings and weekends.

10/12/2021

CANADIANS FEAR BANKRUPTCY RISKS FOLLOWING RATE HIKES - MNP DEBT.
Source: By Ephraim Vecina / CMP/ October 12, 2021.

While the record-low rate climate has proven quite attractive to consumers, nearly 35% of Canadians are worried that higher interest rates could push them into bankruptcy, according to MNP Debt.

A majority of Canadians (52%) are also concerned about the impact of rising interest rates on their financial situations, MNP said.

The fears stem from a widespread appetite for increasing debt, with 49% of Canadians saying that they're more relaxed about carrying debt than they usually are with interest rates so low, and 58% saying that low interest rates provide them the opportunity to enter into transactions they otherwise couldn't afford.

"Buy now, pay-later options, payday loans, and credit cards are particularly attractive to those with tight finances, but the payment terms, fees, and interest charges are largely underestimated or misunderstood," said Grant Bazian, president of MNP." In addition to the financial turmoil brought on by the pandemic, another issue we see in our research is households are struggling with the rising cost of living. With the price of necessities increasing, some may take on more credit to make ends meet while others will have less room in the budget for debt repayment."

Market observers are expecting the Bank of Canada to keep the benchmark overnight rate at 0.25% for the foreseeable future to stimulate growth, with a prolonged rate hold well into 2023 paving the way for full economy recovery.

10/05/2021

THE IMPACT OF PRICE RISES ON HAMILTON'S MORTGAGE MARKET.
Source: By Fergal McAlinden / CMP / Oct 5, 2021.

It's been a hot topic in recent weeks: the revelation that Canadians are becoming increasingly uncertain about the future of the housing market and wider economic outlook as the COVID-19 pandemic shows little sign of easing.

The latest edition of the Bloomberg-Nanos Consumer Confidence Index saw more than half of survey respondents state that the cost of buying a new home will continue rising in their neighborhood in the next six months - compared with just 12% who believe prices will drop by then.

That pessimism is perhaps unsurprising, given the relentless price increases that have taken place across the country over the past year. Hamilton, Ontario, a port city on the edge of the Greater Toronto Area, offers a snapshot of a trend that's been occurring throughout Canada: even with home sales on the decline since the frenzy witnessed earlier in the year, prices continue their steady climb.

According to WOWA, despite home sales in Hamilton seeing a small year-over-year decrease last month, the average sold price of a home in the city - $779,486 - has spiked by 18% since the same time last year.

Carmen Costa, a Hamilton-based mortgage broker with Axiom Mortgage Solutions, told Canadian Mortgage Professional that those escalating prices continued to pose a real challenge to her clients hoping to buy a home in the region.

"The uncertainty lies with the housing crisis," she said. "It's just not sustainable; there has to be some sort of cap. That's the uncertainty that my clients have walking into the market: is it actually worth that price?

"On top of that, there isn't any inventory out here. For most of my preapprovals, they've backed out of the market saying, 'We're just going to wait a couple of years to see where the market's heading."'

Those two issues - massive price rises coupled with lack of inventory - have created a sense among many prospective homebuyers that a wait-and-see approach may be more prudent in the current climate, with Costa also saying that measures such as June's hike to the mortgage qualifying rate have further complicated matters for new entrants to the housing market.

"It would be 100% the first-time homebuyers [affected]," she said. "When you have somebody that owns a home, they can pay off debt and rejig the application. [First-time buyers] don't have the flexibility or any more than what they had budgeted for.

09/29/2021

CANADIAN HOUSEHOLD DEBT EXCEEDS $2.5 TRILLION.
Source: By Ephraim Vecina / CMP/ Sept 29, 2021.

With household debt now totaling approximately $2.53 trillion per Statistics Canada data, 25% of consumers said that they expect to be unable to pay their current bills and loans in full, according to TransUnion.

However, this is much lower than the 70% share that had similar concerns back in March of last year. This trend indicates the decreasing financial impact of the pandemic despite substantial debt loads, TransUnion said.

Thirty-three percent of respondents to a recent TransUnion survey said that their household income is currently negatively impacted by COVID-19, falling by 2% from the previous edition of the survey in June, TransUnion said.

"This decrease could be due to government subsidies and lender payment deferral programs that helped customers withstand the economic shock of the pandemic," TransUnion said. "As the financial effects of the pandemic subside, Canadians continue to actively deleverage and pay down debt."

This improved purchasing power, coupled with public health guidelines restricting the ability to spend in person, has led to a surplus of cash among Canadian households, TransUnion said.

"Four in five respondents (83%) indicate they have not been in a past due status on their bill or loan payments in the last three months, consistent with TransUnion's findings in the Q2 2021 Credit Industry Insights Report (CIIR), which showed delinquencies falling across all credit products throughout the pandemic," TransUnion said.

A majority of consumers (54%) said that they feel "some optimism" about their financial prospects, although they also "have continued to defer discretionary spend and generally remain cautious about taking on new or additional credit," TransUnion said.

09/21/2021

THE APPRAISAL PROCESS: WHAT BROKERS NEED TO KEEP IN MIND.
Source: By Fergal McAlinden / CMP/ Sept 21, 2021.

In recent weeks, the lengthy wait time for complete appraisals has been highlighted as an obstacle for mortgage professionals in the homebuying process, with one broker describing the need to warn clients against bidding with an insufficient closing timescale.

Keith Lancastle, chief executive officer at the Appraisal Institute of Canada, said that the time taken to conduct appraisals reflected the need for due diligence and care at a crucial stage of the homebuying process since the onset of the COVID-19 pandemic.

"The reality is when you look at doing an appraisal - whether you're going out to the site or not - by the time the appraiser does the assessment of the subject property, pulls their comparable sales and does their analysis, that doesn't happen in a matter of just a couple of hours," he said.

Lancastle said that sufficient time to complete a thorough appraisal was a "very necessary" step in prudent underwriting, with that process also having been complicated by the fact that appraisers have frequently had to rely on photos supplied by a homeowner or third party throughout the pandemic.

That means that even greater care is often required in studying photos that haven't been taken by the appraiser themselves, with the crucial step of walking through the property and conducting a comprehensive live inspection no longer possible.

Lancastle said the perception that appraisers are frequently to blame for "killing deals" was an unfair one, and that appraisal professionals act with the strict interests of all parties in the mortgage process in mind.

"Our members only kill deals that should've been killed in the first place," he said. "In fact, we are pulling in the interest of the homeowner, the purchaser, and the lender by making sure that we're providing that unbiased opinion."

The fact that the beginning of the pandemic coincided with skyrocketing activity in the housing market posed its own unique challenges for most real estate professions - and the appraisal community was no different.

"The best way to determine the here and now value of the subject property is by having the appraisal completed by a qualified professional," he said. "The appraisal is still going to be the gold standard." Automated Valuation Models (AVMs) which use modelling to calculate real estate values but, he said, are often unable to analyze an unpredictable and chaotic housing market.

09/11/2021

WHAT WILL SHAPE FUTURE HOME PURCHASING POWER?
Source: By Ephraim Vecina /CMP/ Sept 10, 2021.

Canada's future home purchasing power will likely be concentrated on the nation's highest-earning households, if the latest data on savings is any indication.

This is largely because the bottom fifth of Canadian households weren't actually able to save during the pandemic year. This cohort had a net savings rate of -61.4% (-$60.35 billion) in 2020, according to Statistics Canada. These households are essentially insolvent.

"Rising government transfers, which were double the size of income lost, only helped to offset some of the debt,' Better Dwelling said in its analysis of the Statistics Canada figures.

The next lowest fifth of households had a net savings rate of -3.7% (-$6.88 billion) in 2020, a considerable improvement from -28.0% (-$45.02 billion) the year prior.

"However, the country would need to be in perpetual lockdown for this to last," Better Dwelling said. "Otherwise, this demographic is likely to fall back to pre-pandemic levels of savings."

Canada's middle class moved from net borrowing to net saving during the pandemic, with a household savings rate of 9.1% ($22.97 billion) in 2020 - much better than the -6.9% (-$15.63 billion) in 2019.

The greatest savings were seen in the upper two-fifths of Canadian households, which had the advantage of larger financial buffers to begin with. The second wealthiest segment nearly doubled its savings rate to 19.6% ($66.06 billion), while the highest earning households posted a savings rate of had 33.1% ($186.61 billion) in 2020.

09/08/2021

BANK OF CANADA HOLDS BENCHMARK RATE AT RECORD LOW.

As expected, the Bank of Canada announced today that it is maintaining the key rate, noting that the recovery continues to require extraordinary monetary support. While the economy is expected to strengthen in this second half of 2021, the fourth wave and ongoing supply bottlenecks are concerning. Inflation is above 3% but the factors causing this are expected to be transitory, although their persistence and magnitude are uncertain.

The Bank is committed to holding the policy interest rate until economic slack is absorbed so the 2% inflation target is achieved, which they again anticipate will be in the second half of 2022.

The next rate-setting da is October 27, 2021.

09/02/2021

6 TIPS FOR FINANCIAL FITNESS THIS FALL.

The Fall has always been a great time to go back to school on financial fitness, and this year it may be more important than ever. Here are some tips to help make sure your finances are fit and stay that way:

1. Splurge, just a little. - Many of us dealt with stressors that we didn't even know existed, like not being able to see loved ones. That's why we all want to live a little, but perhaps do it strategically so you don't break the bank. Maybe have some celebratory days with a set amount that you can spend where you go out and do the things you've really missed.

2. Revisit (or start) your budget. - Having a budget is one of the most important ways to achieve a solid financial future. It might not be the most thrilling task, but it's one that will give you a clearer picture of where you stand and how much you can truly spend. You'll also be able to determine how much money you can allocate to your "live a little" fund.
While preparing your budget, first take a new look at your monthly bills and go through them line by line. You may have signed up for services you never really use or perhaps don't remember requesting. Look for small, unexplained charges, fees, and add-ons, and the services that you can now live without.

3. Maintain your credit. - Your credit score is essentially your passport to financial opportunities. It can mean the difference between getting approved or denied for any kind of credit and can prevent you from getting the lowest mortgage rate. The good news is that you have a lot of control over your score. That's why it's important to always have good credit behaviors. The single biggest factor to having a good score is a timely bill payment history so never let a bill get past due. Be sure to know your credit limits and try not to use more than 30% of the available amount, don't be tempted to apply for store cards just to save on your purchase that day, and before you cancel a credit card get advice.

4. Focus on your high-interest debt. - Always keep an eye on your high interest debt and pay down your credit cards as much as possible. If you find that your debt is making things difficult, you may be able to move that debt to your lower-rate mortgage if you have enough home equity. You could save thousands in interest, have one lower monthly payment that greatly improves your cash flow, and enjoy much reduced financial stress.

5. Spend time, not money. - We've all gained a new appreciation of the value of being able to spend time with loved ones in person, that it's something to treasure. Focusing on this may keep you from spending money you might not have or might not want to spend!

6. Help others - There are many that weren't very fortunate during the pandemic. Consider committing some money to giving back - charities, shop local, tip restaurant workers and others generously.

08/25/2021

TRANSUNION ON HOW MORTGAGES INFLUENCED THE Q2 CREDIT MARKET.
Source: By Ephraim Vecina /CMP/ Aug 25, 2021.

Mortgage originations largely impelled the credit market rebound seen during the second quarter, driven by a strong housing market and low interest rates, according to TransUnion.

In its just-released Q2 2021 TransUnion Canada Credit Industry Insights Report, TransUnion said that consumer demand for credit is gradually returning to pre-pandemic levels, with credit applications increasing by 5% year over year in June.

A substantial increase in home sales volume and average sale prices pushed mortgage originations up by 37.5% annually. New mortgage originations accounted to $96 billion of new mortgage debt in the quarter, up 59.5% during the same time frame. The average mortgage balance per consumer also grew by 8% over the past year, reaching $304,772.

TransUnion said that stricter mortgage qualification requirements triggered a notable shift in the risk distribution of new mortgages . During the second quarter, the majority of new mortgages were issued to Canadians with credit scores of 760 or higher, leading to a 53% annual increase of above-prime mortgages. Conversely, the volume of subprime mortgage originations fell by 31% year over year.

"Consistent with consumers paying down debt, delinquencies fell across all credit products throughout the pandemic," TransUnion said.

Overall consumer delinquency ticked down by 0.63% annually to 1.96% as of the second quarter.

08/23/2021

STATSCAN ON THE TROUBLING PACE OF MORTGAGE DEBT GROWTH.
Source: By Ephraim Vecina /CMP/ Aug. 23, 2021.

Canadian mortgage debt saw its fastest monthly and annual increases in more than a decade in June, according to Statistics Canada.

The overall balance of household mortgage debt grew by 1.4% month over month in June, representing an increase of $23.6 billion from May, the largest monthly increase on record. Annual growth amounted to 9.2%, a pace that has not been observed since October 2008, Statistics Canada said.

The total value of residential mortgages also grew by 1.2% to 1.73 trillion in June, the strongest pace since 2007. Over the first half of the year, households piled on an additional $81.6 billion in mortgage debt, Statistics Canada said.

This is despite the steady slowdown of homes sales activity nationwide after reaching a peak in March.

"There is normally a time lag between the sale of home and the actual receipt of mortgage funds; however, borrowers may also be in the market for a new home, or otherwise be taking additional equity out of their home or consolidating debt when refinancing their existing mortgages," Statistics Canada said.

Other factors influencing the growth of mortgage debt included investment in residential building construction, which saw "sustained growth over much of 2020 and into 2021 and remains elevated despite recent declines, while year-over-year gains in new home prices remained near record highs in June," Statistics Canada said. "Additionally, the new OSFI stress test for uninsured mortgages went into effect on June 1, which may have spurred additional borrowing prior to the deadline."

08/21/2021

HOW NEW IMMIGRANTS COULD HELP SHAPE THE CANADIAN MORTGAGE MARKET.
Source: By Fergal McAlinden /CMP/ Aug 20, 2021.

Having faxed as a major force in the market since the imposition of border closures and travel restrictions when the pandemic struck, the number of new immigrants to Canada is slowly returning to more normal levels - spurred by ambitious government targets to welcome over a million new Canadians before 2024.

According to figures released by Immigration, Refugees and Citizenship Canada, June was a record-breaking month for immigration to the country, with 35,660 new permanent residents arriving that month.

That was the highest total in a month since at least 2015. Last month, meanwhile, the federal government also announced that holders of Confirmation of Permanent Residence (COPR) documents issued after March 20, 2020, could enter Canada - a decision that could see thousands of new Canadians arrive in the near future.

Paul Meredith of CityCan Financial told Canadian Mortgage Professional (CMP) that the record numbers of new immigrants likely to arrive in Canada in the coming years could provide a sizeable boost to the housing and mortgage markets.

" Canada is welcoming 401,000 new immigrants in 2021."
"Canada's only expected to increase this number over the next several years and these people will, of course, all need somewhere to live. I would expect more demand for housing to come over the coming years, and for that reason, I wouldn't expect any kind of slowdown in the market to come anytime soon," Meredith said.

Plans to introduce COVID-19 passports for international travel, set to be available sometime before the end of the year, are also likely to increase the number of international travelers arriving in Canada.

Meredith said that while he hadn't noticed a significant uptick in new immigrants seeking a mortgage - with first-time homebuyers, instead, making up a considerable share of his current client base - a notable increase of new Canadians seeking mortgage services was likely to take hold before the end of the year.

"It's just a matter of time," Meredith said. "There's pent-up demand for immigration: there were only 184,000 new immigrants in 2020, a number that was a lot lower [than anticipated] because of the pandemic. You have a lot of new immigrants sitting on the fence waiting for immigration to open back up."

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