About Patricia McKean

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So far Patricia McKean has created 34 blog entries.

Rural Financing – What to Know!

Rural financing refers to the funding of agricultural or (other rural-related projects) in a rural area. When considering building or buying a home on raw land (raw land = land that has not been developed, subdivided, or improved in any way ie: in its natural state, without any infrastructure or buildings on it) or running a hobby farm, it is important to take into account the all of the factors. Let’s take a closer look at a few. Building on Raw Land Buying a parcel of land and building your dream home is an exciting venture – but here are some key points to consider: Higher down payment (35 - 50%) Higher interest rates Zoning laws and building codes Access to utilities (water, electricity, sewage) Soil quality and topography Environmental factors (flood zones, endangered species, etc.) Permits and fees, transportation access Proximity to amenities (schools, stores, hospitals) Future resale value.  Rural financing on raw land typically involves obtaining a loan from a specialized lender or government agency that provides financing for rural properties. The loan terms may vary depending on factors such as the size of the property, intended use, and creditworthiness of the borrower so it’s important to do


Credit Scores and Home Buying

Ready to Purchase? When it comes time to purchase a home, one of the most important factors to consider is your credit score. A credit score is a three-digit number that reflects how you have managed your financial responsibilities in the past. It is used to determine how likely you are to repay a loan and it is a key factor in determining your ability to obtain a mortgage. A good credit score is generally considered to be any score over 700. However, it is important to remember that banks and/or lenders may not just look at your credit score, but also the amount of debt you have, the length of your credit history, and other factors. Having a good credit score can help you get better interest rates on your mortgage, and it can also open up more options for you when it comes to mortgage lenders. It’s important to make sure you maintain a good credit score before you apply for a mortgage, and also to be aware of any potential issues that could affect your ability to get a loan. The Five C's of Credit There are five C's of credit: Capacity, Capital, Collateral, Conditions and


Renting vs. Buying a Home

Conversation Starter Buying a home - it’s a big deal and a huge decision to make with a lot of factors that play into it. If you’re in our current rental market, chances are you’re paying a pretty penny every month so why not take the next step and use that money to pay your own mortgage? Let me expand on that. Let’s start the conversation… It's important to understand the pros and cons of both options before making a decision.  Renting When it comes to renting, one of the major benefits is the flexibility it provides! You can typically move-out with only one months’ (30 days) notice and don't have to worry about the costs of maintenance, repairs and in some cases, outdoor maintenance (depending on what type of property you are renting). On the flip-side, you don’t have the permission to make any aesthetic changes to the property as you see fit and if you do, you could lose the damage deposit that all landlords take for such cases. That said, with approval from the landlord they may allow you to renovate, paint and make certain changes, but it’s at your own cost and not an expense you


What women need to know about their finances

What women need to know about their finances Women need to take charge of their finances and make sure they understand their financial situation. It's important to create a budget, track your spending, and set financial goals. Too often I see women take a back seat and don't make sure their are a priority in all aspects of their life. It is important to ensure you have set yourself up for financing success. Here are a few ways to help with this: Ensure you have at minimum 2 active trade lines on your credit bureau. A suggestion is a major credit card and Line of credit. They don't have to be large just a $200 minimum each. Use these monthly to pay for groceries, fuel or any other household debts and pay off each month. This will ensure you have an active credit bureau. If for what ever reason you were on your own and haven't set these up prior you would be forced to start again with no credit and if you are not working that maybe very hard to be approved for. Here is a great read on how to build credit: Increasing your credit score in


20 Things I’ve Learned in my 20 Years as a Mortgage Broker

Reaching this milestone in my career and looking back I wouldn’t have imagined I’d still be a mortgage broker, but here we are! I’m in my 20th year as a broker and I still love what I do, every single day. Because I’ve surpassed this milestone, I think it’s fitting to pass along some of the wisdom I’ve gained throughout my tenure; here are twenty things I’ve learned… so far! As a mortgage broker I’m not paid if you do not get the mortgage you are needing, therefore I (always) work extra hard! As a mortgage broker, I hold a license that is regulated and requires educational components to hold and keep it. This isn’t something any of the Bank Mortgage Specialists have so they have less accountability. Rules change all the time! Back 20 years ago we could write on a piece of paper what someone’s equity is, now it all has to be what they file through Revenue Canada to ensure they are paying their share of the taxes. A lot of mortgage brokers come and go  – being in this business for 20 years is an anomaly. Many deals get lost by the broker or bank employee


Are you currently in a HELOC?

Do you have your home mortgage in a HELOC? It maybe time to rethink that. If you are in a HELOC or home equity line of credit your amount of interest would have flocculated as well. If you payment was set to pay interest only then you likely have been asked to increase to help offset the new interest charges if you had a higher payment set then more will be going to interest and less to principal. For someone in a HELOC current with a $300,000 mortgage with a prime plus interest rate your interest only payment is $1773.58 if we switched that to a mortgage with a rate of 4.89% your monthly payment would be $1726.08 where $1210.23 would go to interest and you would contributing $515.85 to your mortgage principal every monthly. In a 5-year term you would have paid down $34,939.01 but with the HELOC your principal would have stayed the same making those interest only payments. Give me a call to we can discuss you options and make a plan for you 403.875.2969.


No Down Payment? I have a solution

Are you wanting to buy a home but struggling with the down payment in this high cost of living environment?  I have a solution for you.  Watch my short video on how we can work to get you that down payment to purchase your dream home.  Then give me a call or text to start the process 403.875.2969.  We will just follow these steps to make this happen. Down Payment Solution - Watch Video Steps: 1. Give me a call to set up the pre-approval 2. I set you up with a bank for RRSP loan (I work with many) 3. File you personal 2022 income taxes 4. Apply refund to RRSP loan 5. I set you up with one of my amazing realtors and you start the home shopping process! 6. Mortgage product is a 3% cash back to pay off RRSP loan at lawyers 7. You have you home :) Check out Revenue Canada's website to ensure you qualify to use the Home Buyers RRSP withdrawal:  How to participate in the Home Buyers' Plan (HBP) - Canada.ca Patricia McKean patricia@patriciamckean.ca 403.875.2969


Increasing your credit

If your credit score is accurate, but does not meet the minimum requirements, you will want to look at your current debt. Home ownership is an incredible investment, but it is also costly. Fortunately, there are a number of things you can do to improve your credit score as well as your future financial success, including: - Paying your bills in full and on time. If you cannot afford the full amount, try paying at least the minimum required as shown on your monthly statement. - Pay off your debts (such as loans, credit cards, lines of credit, etc.) as quickly as possible. Work on paying the ones with the smallest amount owing first and work your way towards the larger amounts. - Stay within the limit on your credit cards and try to keep your balances as low as possible. - Reduce the number of credit card or loan applications you submit. Here is a great video that helps explain some of the main items of your credit score:  https://m.youtube.com/watch?fbclid=IwAR1ZMcbi_84El35sfpddDWS-QyV_MS232mu3DmkW0x_1qvHzsPJwUZBS8C8&v=IjTNlju7cm4&feature=youtu.be Still Have Questions?  Check with a mortgage professional to get the information you are looking for.  Feel free to reach out to me at 403.875.2969.


Terms you will need to know when buying a home

When buying or selling a home, you’re going to encounter all the terminology that goes along with it. Many of these words and phrases are not common knowledge and having a basic understanding of the ones used most often can make the process less daunting. Let’s look at a few real estate terms to know: Adjustable-rate mortgage (or Variable rate mortgage)– There are two main types of mortgages. An adjustable-rate mortgage has an interest rate and mortgage payment that vary according to market conditions. It is less predictable than a fixed-rate mortgage but can potentially have very low interest rates at times.  A variable rate mortgage is similar, but the payment stays the same and the amortization of the loan changes with the fluctuating interest rates. Fixed-rate mortgage – Fixed-rate mortgages are more predictable. They have an interest rate and mortgage payment that remain the same throughout the term and does not fluctuate according to market conditions. Mortgage pre-approval – A mortgage pre-approval is a process that involves you as the homebuyer and the bank as the lender. Homebuyers will fill out an application detailing various aspects of their finances, including income, assets, and credit history. The lender will then review it to


Renting vs. Buying

Are you still renting? Let's make a plan to change that! Rents has increased roughly 17% over the last 2 years and I am sure are about to go up with landlord's mortgage rates increasing by 77%. Now is the time to make a plan of how to get you out of renting and into a home of your own. Send me a text to set up an appointment at 403.875.2969 or email patricia@patriciamckean.ca to discuss and find a solution for you! If you are paying $1700 a month in rent that is a $300,000 purchase and $2200 is a $400,000 home.  Stop paying someone else's mortgage and start paying your own.  I also work with the best realtors in the business and will match you up with one in your area to find your dream home.