citizen of the planet

I honestly need to be a little bit more careful when I go grocery shopping.  The past few times I’ve gone I’ve ended up buying so much food.  You’d think I was preparing for some big approaching natural disaster.  OK, so maybe that’s an exaggeration.  If I think about it, the last time I went grocery shopping was right after Thanksgiving.  Still, was there really any reason me to fill up two of those black PC bags and a green bin? Really.

Perhaps it’s because I’m still in that phase where I’m stocking up on basics.  For example, there would be no reason for me to buy olive oil every time I go out, right?  That was $5.99.  Meat is pretty expensive, too.  Luckily one tray of meat tends to last for a few days.  I bought bacon and separated it into 3-strip packages prior to freezing it.  I don’t eat that daily, so it’ll last for around 3 weeks.  Have you tried to buy boxed fish lately?  I got a box of High Liner fish fillets, and that cost me $11.49.  That’s ridiculous!  I think I recall that being cheaper in previous years.  Or perhaps I’m thinking of the really oily fish cuts–those tend to be cheaper.  Even if they’re cheaper, it doesn’t mean I want them.  A few weeks ago I bought a box of English-style haddock fillets.  I’m sure that was cheaper than this box.  Thing is, holy crap, that fish was ridiculously oily.  I had to blot the pieces prior to eating them.  Even after that, I just didn’t feel great eating them.  In that case, the extra cost is worth it.

I wonder how much this new healthy streak is affecting what I’m getting.  Remember how I was talking about buying a lot of fresh fruit before?  I got carried away this time as well.  Maybe it’s for the best.  Some of the fruit I bought last week went bad and I had to bin it.  I told myself that next time I get fruit I better work hard to eat it all before it goes to waste.  Well, with that much in the fridge, I better make sure to get in the recommended servings of fruits and veggies or else it’ll be like I’m just tossing cash to the wind.  Part of the solution is knowing what spoils quickly, and to plan to eat all that as soon as possible.

So, OK.  All things considered, I guess I don’t have that much useless stuff on the list.  Everything is stashed properly and should hold long enough for me to get to it.  It’s part of the price of independence, isn’t it?

I think I have this mortgage thing settled without much effort. Really, it’s kind of like there are a couple of people out there that are doing the dirty work, leaving me to just decide what the best course of action for myself is. There’s one offer out there tied to the builder and a big bank that’s a rate that’s actually quite unbelievable at this point in time. I tried to take it to my bank this morning to see if they could match it, but alas no luck there. From the general consensus of colleagues and friends, it looks like the rate that I was presented with is indeed nothing to scoff at. I just need to get my documents in order, but it looks like I’m pretty much set.

Even though I didn’t really do much work in terms of scouting out a rate, I actually did spend a little bit time educating myself on the numbers behind rates and what banks might do in the future. People can make educated guesses but ultimately it’s hard to predict what the Bank of Canada is going to do. Consider the past few months. I know a few people that decided to go with a variable rate. That all made sense because the banks and what not were offering rates at the prime rate (currently 2.25% at many banks) minus some small percentage. I guess the banks were really trying to encourage people to get mortgages. All of a sudden though, the variable rate became prime plus a certain percentage. At this time the rate seems to be prime + 0.6%. Maybe the banks are reacting somehow and trying to cool things off. If I were to get a variable at this time, it wouldn’t seem like such a great deal once the prime rate starts heading back up when the banks recover.

So, all right, I think I’m going to settle on a fixed rate. Traditionally those rates are higher because you’re kind of paying a premium for that security. Historically, variable tends to save more, but in my case I think the timing is off. The whole prime plus scenario gives me pause. Given the fixed rate I was offered, all prime would need to do is go up by more than 0.5% for a prime + 0.6% rate to go above the fixed rate being held for me. I have to decide: should I bank on the fact that prime will go up within the mortgage term?

Yes, what about the mortgage term? When you talk fixed rates, most banks tend to give 5 year terms. Those seem the most common. Thing is, is that ideal for my situation? Five year rates tend to be higher than shorter terms. In general, the longer you go the higher the rate because of the uncertainty factor. Do I plan on living in that condo for all five years? If I decide to move and break the mortgage early, I’ll have to pay a penalty. The rate I was quoted is for a 3 year fixed term. In all honesty, that seems to work perfectly for me. If at the end of three years I still plan on living in that condo, maybe the variable rate will be back to a prime minus situation. Who knows?

See! It’s fascinating stuff! It’s a numbers game with a bit of luck and prognostication involved. There are some cases where a little bit of knowledge can be detrimental. In this case though I almost feel like having this bit of knowledge is like a bit of armour. It’s giving me a bit of confidence in knowing that I won’t be making this important decision blindly.

Generally, I’m not the type of person that’s an extravagant and mindless spender. Almost obsessively, I log into my bank’s online site to check how my money is doing. That’s not to say I’m a tight wad, but I at least try to be responsible.

Now, with possession and closing really creeping up close, it’s finally dawned on me that I really need a good chunk of cash in order to make it through that period. There are so many fees and incidentals that I have to worry about. I wonder, why didn’t all of that ping on my radar much louder up until now? Will I be prepared enough to handle anything thrown my way? I’d like to think I am, so I don’t plan on losing much sleep over it. Still, I acknowledge that I am going to have to really clamp down on spending.

I’m sitting here listening to the radio, flipping between an oldies and a new rock channel. I’m taking this opportunity now to feel relaxed because I know that higher stress times are nigh. I hope that they pass without any major disasters because I can’t stomach the idea of being financially up the creek without a paddle.

I came home to find a registered letter from the condo builder. I knew it was possible that the letter would contain good news, but I knew that it was even more likely to contain something more bittersweet. Seems my hunch was correct. For the longest time, talk of the possession date has been prefaced with the term “tentative.” With this letter the term has now changed to “confirmed.” Great! Right? That’s all well and good, but the actual quoted date has changed from April 8 to May 25.

Unlike the last time the date changed, I’m actually quite at peace with this change. This move means I’ll have another two pay cheques banked by this new date. I’ve mentioned this as well last time: it allows me more time to gather more resources. I’ll have enough to post a 20% down payment, but is that a good use of money when I need cash to pay for appliances and furniture as well? We’ll see.

Once again, I’ve reset the clock on the widget to the right. Right now it’s saying “Only 5 months and 7 days left.” All in all, that’s not that long from now. I’m still psyched–none of this will dampen my enthusiasm. 2009 will be an awesome year.