An excellent way to force an increased payment while protecting yourself from raising interest rates is the frozen mortgage payment available for variable rate mortgages. This option is hard to find but a good broker will know where to look. Let’s take a look at today’s (Jan 15, 2010) frozen payment:

• 2.05% Current VRM rate at Prime (2.25%) minus 0.20%
• 3.89% Current frozen payment

Using a $300,000 mortgage and 25 year amortization, the following happens:

• Current VRM payment is $1,277.60 and it floating at Prime minus 0.20%
• Current frozen payment is $1,560.22

With a frozen payment, the difference in payment is taken off your principle balance. In this calculation, the amount $282.62 is coming off your principle every month. When the Prime rate increases (and it will eventually), that spread decreases. When the interest rate exceeds your frozen payment you are protected but are now paying less of the principle per month. Paying less per month obviously isn’t a good thing but this option is here for your protection. When the interest rate increases to this point, I suggest putting aside month to dump in the principle annually or requesting a monthly payment increase. Of course you would only do this if your budget permits such action. In the event interest rates skyrocket, you will receive a warning call from your lender that your payment will have to increase otherwise your amortization will automatically increase.

I had the pleasure of being interviewed by Vancouver Realtor Mike Stewart on the topic of fixed vs variable. This is a very important discussion for many people these days and certainly a hot topic. My response is relatively simple, there are a few things you need to ask yourself first:

• How do you sleep at night?
• Can you afford a rate increase?

Now let’s break these two questions down. If have troubles sleeping easy not knowing what your payment could be next month i’s not worth the stress, go fixed. Can you afford a payment increase of 3-4%? If you can I would seriously consider “rolling the dice” going variable. Historically a variable rate is the better way to go.

I am always listening for your opinion so please feel free to comment below and check out my other blogs on this site. I am a Vancouver mortgage broker working with everything from first home buyers to investors. At the same time I do my best to education the public on how to be more financially savvy over all. If you would like to learn more about mortgages and over all real estate, please check out http://www.jessijohnson.ca.

As a Vancouver mortgage broker I am consistently looking for ways to work more efficiently. Microsoft Workspace Live greatly assists me in doing just that. Check out http://workspace.office.live.com and you will see what I mean. To give you a quick break down, Workspace Live allows you to easily share files with various people. You can create separate work spaces for separate groups. For example, I created the following groups:

1. Jessi & Traci (my assistant)
2. JJMT (docs shared with my company)
3. Friends (self explanatory)

Each workspace as totally separate passwords and information. One can easily invite or remove people from the workspace. Keep in mind, this is still the Beta version. So far I haven’t found many issues with this, except for the odd crash. This is Microsoft after all, so we should expect that from time to time.

I am always listening for your opinion so please feel free to comment below and check out my other blogs on this site. I am a Vancouver mortgage broker working with everything from first home buyers to investors. At the same time I do my best to education the public on how to be more financially savvy over all. If you would like to learn more about mortgages and over all real estate, please check out http://www.jessijohnson.ca.

First off, I am not a realtor but do get asked about this project very often. I am a Vancouver mortgage broker with excellent realtor connections and The Mark Vancouver has been a popular topic for my network. Would you like to learn more about what is soon to be Yaletown’s tallest building?

A new Development called the Mark went on sale on November 28th 2009.  Key Marketing & Onni have extended to my network the opportunity to purchase prior to the official release to Realtors and the general public.  This is a very exclusive opportunity to purchase the best selection of studios, 1 bedrooms and two bedroom units.

This project will be located at Seymour and Pacific, beside the 501.

AN ICONIC, ARCHITECTURAL MASTERPIECE

Consistently ranked as one of the world’s most livable cities, Vancouver welcomes a gem of architectural excellence to its enviable skyline. The Mark soon to become a residential land-mark in a city renowned for its beauty and natural advantages: a backdrop of mountains & water that provide a spectacular setting to a world-class cosmopolitan culture. At the axis of Vancouver’s most coveted communities, The Mark rises with a distinct profile to shape future horizons. Positioned to capture views across English Bay and beyond. Designed for inspired urban living and intelligent environmental sustainability. Come home to a modern master-piece. Located at Seymour and Pacific, The Mark will likely be the tallest tower in Yaletown at 41 stories with AIR-CONDITIONING and world-class amenities.  Floor plans are available!

Deposit 20% payable over 18 months. 5% upon signing, another 5% in 6 months, another 5% within a year and the final 5% within 18 months.

Amenities 8th floor:

• Pool
• Outdoor hot tub
• Dining hall, kitchen and patio

Amenities 3rd floor:

• Owners only wellness centre
• Big professional Gym
• Steam room & Sauna
• Spa treatment rooms
• 8000 sf Yoga / Pilates studio

Amenities 2nd floor:

• Lounge & private dining facility with commercial kitchen
• Playroom
• 4 Guest suites
• Conceirge

UNIT Features:

• Air-conditioning
• Open air balconies
• Floor to ceiling windows
• Oak hardwood flooring (engineered)
• Highly efficient washer and dryer
• AEG stainless appliances
• Solid stone composite countertops
• Custom cabinets
• Over height backsplash

Completion date is estimated to be 2012.