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As many of you may be aware, the Bank of Canada increased the prime rate from 5.95% to 6.45% on Wednesday December 7, 2022. A move widely expected by economists, inflation remains prevalent on the global horizon, slowing economic growth in all hemispheres of the world. This increase will impact all debtholders, which includes those with mortgages to pay off – that is, those paying a variable rate mortgage. 

With interest rates increasing, now is a great time to understand what a trigger rate is. A trigger rate is the rate at which your mortgage payment will only be covering the interest. Since your mortgage payments are often fixed in a variable rate plan, this means none of the payment will go towards paying the principal. This is a worse case scenario you should avoid at all costs – as you will essentially never be able to reduce the debt to your lender. The issue is that you will have stopped paying off your loan – this can also be called negative amortization. It is highly recommended that with this increase in interest that mortgagees figure out what their trigger rate is. This can be easily determined by reviewing your agreement, or contacting your financial institution and lender. 

Example

Let’s say someone recently obtained a mortgage for $1,000,000 with an Amortization period of 25 years. If this loan was taken out in January 2022, the prime rate would have been 2.45% and let’s assume their interest rate was the same. The monthly payments would be $4,454.80. However, if this mortgage was acquired in December 2022 the borrower would then be paying $6,667.96 each month, this is assuming their interest rate equals the current prime rate of 6.45%. This goes to show the extremely large impact the rising interest rate has had on debtholders throughout the year 2022. Assuming this interest rate were fixed for the next 25 years as compared to a 2.45% interest rate, a borrower would end up paying $663,945.99 more in interest payments.

Suggestions

As a mortgagee, rising interest rates are something you never look forward to. However, they are inevitable and are vital to the stability of the national economy. What can you do to make sure you don’t break the bank with monthly mortgage payments? There are a few viable options. Firstly, you can also ask your lender if they offer an interest rate cap – this is the maximum interest rate your lender can charge on a mortgage. This means you never have to pay more towards your interest than the cap rate, even if interest rates continue to rise. 

Another option worth considering is making additional payments, which can be done two ways – increasing your monthly payment amount or making additional monthly payments . The key to saving money on your mortgage is to pay off your principal as quickly as possible. Your lender uses your mortgage payment to cover the interest first, before allocating it to your principal, and then your taxes and insurance in some cases. It’s important to note here that towards the beginning of your amortization period, only a small proportion of your mortgage payment goes towards your principal, though this gradually increases until your principal is paid off. 

These complications make it more tricky to pay off your principal quickly, especially in times where interest rates are rising. Making extra and/or additional payments, if it is an affordable option for you, is a great way to combat this. Your lender will apply any extra payments under the terms of your mortgage towards the principal – reducing this amount can save you up to tens of thousands of interest dollars. However, this option is not advisable if you are racking up debts with higher interest rates – you should work towards paying those off before making additional mortgage payments. On that same note, it’s a good idea to adjust your budget if you decide to make additional monthly payments to balance out our other expenses. Ideally, you want to avoid resolving financial issues in one area of your life at the detriment of another. 

The strategies discussed above also work well in the context of situations in which you reach your trigger rate. Though these are perfectly reasonable steps to take in these cases, we hope none of you get to this point – treating these solutions as preventative measures to avoid reaching your trigger rate is a best practice. 

Conclusion 

Variable interest rates are a constant part of our day-to-day life. Whether you’re a long-time home owner, an aspiring property investor, or a serial shopper, financial literacy is intrinsically important to making sure you get the best out of life. We all need to be ready for changes in the market – this could mean adjusting our monthly spending budgets and choosing a different time to make large transactions. As with most issues we encounter in our busy lives, it’s best to get in front of the complications in your mortgage payments and put in the work to mitigate it instead of working hard to recuperate from reaching your trigger rate.

Exclusive. Refinement. Quality. These are all words that can be used to describe this restaurant. Nupo is a sushi restaurant located in the East Village that serves piece by piece as well as a la carte. It is known to be largely plant-based and also includes vegan options. This exclusive restaurant is reservation only, books quickly, and is full of secrets. If you’re looking for a reason to move to the East Village, Nupo is reason enough. If you go once you’ll be craving this high class affair and exquisite food. 

Nupo is owned by Darren MacLean, a chef in Canada’s Best 100 and a finalist on Netflix’s The Final Table. Their piece by piece service contains three seasonal dishes, a sashimi tasting, and one course of nigiri. All which is cut, formed, and prepared right before your seat. Each quality grade ingredient is sustainably and globally sourced. The meal is then complimented with butter-roasted miso soup, and wrapped up with a decadent dessert.

This restaurant is currently hosting their “Cultural Chef Exchange” in partnership with Food Tourism Strategies inviting chef’s from all around the world. The highly talented and influential chef’s that take part collaborate and inspire. In hopes to promote Canada’s, and more specifically, Alberta’s culinary background. This also provides the opportunity to learn about cultures and practices of other countries. 

Nupo holds a secret close to its heart and that secret is EIGHT. A discreet door within Nupo leads to an exclusive venue with only eight seats. This restaurant within a restaurant is reservation only and takes their customers on an interactive dining adventure. If you’re searching for high class, top tier exclusivity this is it. 

An elegant, yet select experience Nupo is one restaurant that cannot be passed up. The production of the food is of the highest quality from start to finish. It expands from simply serving food, as it adds a cultural and interactive twist. Once you get a taste you’ll want to keep coming back.

Winter is around the corner and now is the time to find your favourite winter activities. Today, we’re bringing you the Nordic Loop and Hygge Hut both located in Calgary’s East Village. Residents of this area get the best of both worlds as these two places perfectly compliment each other. One is the opportunity to get fresh air and physical activity outdoors, while the other creates a cozy environment to warm up from the cold. Unlike some attractions, these places are perfect to keep coming back to for more fun and to create new memories.

Starting with the Nordic Loop, this 1 kilometer cross country ski and snowshoeing loop is a fun activity to do with friends and family. Skis and snowshoes aren’t provided or available for rent so make sure to bring your own. The best news being it’s free of charge and maintained weekly. This loop is open daily from 7:00am to 10:00pm, however there are no lights so if it’s dark out bring a headlamp. There are three entrance points: the Fort Calgary parking lot, from 8th Avenue and 6th Street SE, and from the Elbow River Traverse bridge. This winter activity is the perfect place to get some exercise and embrace the beauty of winter. 

After spending some time out in the cold, the Hygge Hut is the perfect place to go to warm up. The Hygge Hut, pronounced “hoo-ga”, is a contemporary, Scandinavian-style space meant to be a cozy place to bring people together. Located in the C-Square at 4th Street SE and 7th Avenue SE, there are so many ways to get there. In 2022, the hut was open from November to March with limited days and hours, so check back for the 2023 season updates. With soft lighting, a warm drink, and a firepit, this hut has everything needed to warm up and relax. Merchandise for East Village is also for sale at this hut, including candles. The Hygge Hut also hosts events such as weekly ice carving demonstrations, games area, fireside storytime, and much more. 

The Nordic Loop and Hygge Hut are perfect for catching up with friends, going out with family, or spending some alone time. They give East Village residents something to do outside of their home and they’re great to come back to multiple times since you’ll never get tired of these fun activities. Lean into the winter ambience and check out the Nordic Loop and Hygge Hut while you can!

The District Energy Centre is an energy centre that increases efficiency, saves money, and saves power. Located in East Village, the residents are benefited as they have lower energy costs. This thermal network extends over 5,500 meters underground, providing centralized heating to all types of buildings (commercial, residential, and institutional). It accomplishes higher efficiency yet produces lower emissions in multiple ways. Firstly, in periods of low demand, the centre stores energy and discharges it at peaks. While at high demand it reduces power consumption to further save costs. Secondly, it also removes the need for on-site boiler systems, offsetting greenhouse gas emissions by 14,000 tonnes. Lastly, it combines the heat and power unit, increasing the efficiency by 10%. The advantages of the District Energy are endless, and East Village residents are directly benefited by having lower bills and fewer emissions in the air.

The Central Library is one of the most iconic landmarks of Downtown East Village. Located at 9th Avenue SE and 3rd Street SE, this building acts as both a cultural and physical space to connect people. Some may see it as a tourist attraction, however the Central Library has much to offer for locals as well. These include digital resources, free meeting rooms, and events to take part in. 

The digital resources part of the Central Library are all accessible via a library card. The digital library covers various subjects including film, STEM, reading, and learning. Kanopy and Kanopy Kids allows library card owners to stream over 30,000 documentaries, classic films, and learning videos. CodeCombat is a game that kids can teach kids Python or Javascript coding while allowing them to collect gems or defeat enemies. Libby is the platform that allows users to borrow digital books, audiobooks, and magazines. The final resource we’ll discuss is the Learning Express which provides practice tests and tutorials for everyone Grade 4 and upwards.

The library offers meeting and events rooms available and can be booked 30 days in advance. These rooms include the BMO Financial Group Community Rooms, the Patricia A. Whelan Performance Hall, and Rooms 0-13 and 0-14. The amount of seating ranges from 50 to over 300 seats perfect for functions such as performances or private functions. 

Lastly the library offers multiple events for a wide span of age groups. These events include the Holiday Spending Treadmill, a free financial class (November 9 from 6:30-7:30pm in Room 0-13). There’s another course called “How to Motivate Your Employees to Stay in the Face of the Great Resignation” on November 24 at 12:00-1:00pm in Room 0-13. A project-based mini hackathon is occurring November 26 from 10:00am to 4:30pm in the room with the yellow door on the third door. This hackathon happens every last Saturday of the month, and everyone is encouraged to come ready to code. A more recreational event called, “Let’s Colouring and Coffee” takes place on Christmas Eve at noon in Room 3-20A. The library hosts much more so check out their website to learn more. 

To conclude, the Central Library is more than just a flashy place for tourists. It is a great and valuable resource for residents of the Calgary East Village to use to learn, host events, and much much more. 

The Platform is a place of innovation and hope for East Village residents. It’s targeted towards entrepreneurs, investors, and corporate leaders. The Platform is a unique parkade called the Platform Park, and within it are many spaces and features that make up the Platform Innovation Centre. The Platform Park includes a bike park and outdoor sport court. While it’s a fun place to rest and get some physical activity all of the real excitement occurs in the Platform Innovation Centre. This centre offers all residents a platform to stoke innovative spirits and aid in connecting with others.

The Platform Innovation Centre is a singular point of access to a wide variety of resources, supports, and programming events. They have multiple ways to help start-ups launch and grow their businesses as well as room to test out prototypes. There are multiple classes, workshops, and seminars for professionals yearning to learn more. It can also be used as a location to search for funding and other opportunities such as networking. Become a member to take advantage of more resources, and if you’re a small business it’s free! If you’re a larger business memberships are $500 a year, but worth the opportunities to give back to your community

The building has many ways to connect a community as they host weekly programs and multiple events. Tech Talent Tuesday provides people with the chance to interact with a rapidly growing company. They can then network and learn about career opportunities in the tech industry. They are also hosting The Small Business Summit of 2022 from October 26-27, 2022 where these small companies can learn to take advantage of digital disruption. They also provide a space for individuals to sign up for peer-to-peer meetings. Here you can discuss topics of interest with like-minded individuals. The Platform Innovation Centre aso has a 10X Future Founders Scholarship providing Grade 12 students with the opportunity to continue pursuing tech and entrepreneurship. 

Overall, the Platform is a space to support and nurture entrepreneurs of all ages interested in developing their career in technology. It’s a place for those experienced to mentor and give back to the community, and a shelter for young minds to expand and push their limits. The Platform gives East Village residents the resources to strive for perfection and the hope that they can make a difference.

Take a short trek from the hustle bustle of East Village over to the new and improved St. Patrick’s Island Park to have a peaceful outdoor day. This area has many updated features making it the perfect day trip to get away from the city. The park also hosts many events, such as the First Responders Half Marathon, which are meant to bring a community together. With the public restrooms available and the redevelopments recently completed St Patrick’s Island Park is perfect for a first date, family time, or simply catching up with friends. 

The St. Patrick’s Island Park is hosting the First Responders Half marathon to raise money for first responders. Participants can run a half marathon, 10 kilometers (km), 5km, or 1km. This run will occur on The Rise on October 23, 2022 from 9:00am to 12:00pm. Take part while you can and support this great cause!

St. Patrick’s Island Park has also undergone redevelopment which was completed in 2015. Since then multiple attractions were inputted and there’s something for everyone! For pretty scenery, make your way to the vantage point at The Tip for views of the river and of downtown. The Seasonal Breach allows visitors to enter the water and includes a gravel bar. Enjoy The Rise at all times of the year as the 9m high hill is perfect for tobogganing during the winter. In all seasons, it is perfect for hosting gatherings, movies, and performances. Behind the Rise is a children’s play area, ensuring all age groups can have a good time. The Lowland Channel is a wetland with an elevated boardwalk, serving as a great biking and walking trail. Within this area is the Gallery Forest perfect for birdwatching as it’s a habitat for nesting eagles, owls, and songbirds. You can’t miss out on the 23 meter tall sculpture called Bloom, which represents a towering flower. Last but not least, the Lookout Plaza is a great place to hang out with its seating area, amphitheater, and water features. St. Patrick’s Island Park had a second renovation this time to ensure the river can be used for recreational uses. This was reopened in 2018 and has added the perfect final touch to this park of endless opportunities. 

Perfect for large celebrations to small gatherings to getting away and making time for yourself. Located just north of East Village, the short walk across the George C. King Bridge allows for a quick day trip and a breath of fresh air. St. Patrick’s Island Park has something for everyone and is a great place to enjoy the great outdoors.