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.

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

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.

  A reverse mortgage is a loan that allows senior homeowners (55+) to borrow up to 55% of the value of their home. A reverse mortgage is secured by the equity in your home and, unlike a home equity line of credit (HELOC), it does not require any income verification. Because they are secured by your home, reverse mortgages are considered mortgage products, as opposed to other lines of credit. If you take out a reverse mortgage, you can use the money to pay for anything you want, including day to day spending, home repairs, bills, or travel. You also won’t have to pay back the loan or interest until you either sell your home or pass away. Of course, you or your family will rely on the value of your home to pay back the reverse mortgage, which will often mean that you won’t be able to leave your house as part of your inheritance.     What are the pros of a reverse mortgage? There are many advantages of taking out a reverse mortgage: You don’t have to make any regular mortgage payments You don’t have to prove your income in order to qualify The money you borrow is tax-free and does

I have been having a lot of tough conversations with clients lately and that has prompted me to write this post. I know it's not light and fun but I do feel it is necessary. Here are some reasons I have had to decline numerous clients this week alone: Collections. If you owe someone money, please pay them as soon as you can, preferably before they go to collections. So many people seem to hope that ignoring them will make them go away, let me be the one to tell you that just doesn't work. If you can't pay them, contact the collections agency or whoever the debt was originally owed to and see if you can settle or set up a payment plan. Missed payments. If you work away or have a habit of missing payments just because you forgot, please set yourself up with automatic minimum payments. Set up automatic payments on your cell phone bills, credit cards, anything that can be an automatic payment will eliminate the "oops's" I see all the time. Debt. I am seeing more and more people who just can't afford to buy a house. Sometimes it's because they don't have a high

                  A bridge loan is a temporary loan that allows homeowners to make their down payment on the next property while they wait for their pending sale to close. This type of loan is meant to be temporary, ranging from a few days to a few months.  To qualify for a bridge loan, you must have a firm sale on your existing home and the bridge will be set up for the down payment on the new purchase.  Once the sale of your home proceeds is available then the bridge loan is paid out.  The payment of the loan is all completed through your lawyer who preforms the closing of the sale and purchase. Bridge financing comes with a cost and is usually priced higher than typical mortgage rates. Some lenders charge an admin fee, and sometimes legal fees may apply. If you think you may require a bridge loan, it is important that we talk early in the mortgage financing process. Most lenders, including all the Big Six banks, offer bridge loans, not all lenders do. PROS: bridge loans are generally easier to qualify for compared to standard mortgages, because the

Variable vs. ARM: What’s the Difference? Many don’t realize that there are two flavors of floating-rate mortgages: The adjustable-rate mortgage (ARM) Its payment rises and falls with prime rate The variable-rate mortgage (VRM) Its payment doesn’t change when prime rate changes The only exception is when rates soar so much that you’re not paying all the interest. Then the payment generally rises to cover the interest due. The answer is a variable-rate mortgage where payments stay the same and your amortization extends.  On an ARM mortgage your interest rate changes based on the Bank of Canada prime rate announcement which they do 8 times a year your payment changes to reflect the new prime rate and your amortization stays the same.   How Much Shock? Let’s compare a VRM to an ARM and see how big a concern this really is. Assume a $300,000 mortgage with a 25-year amortization at a decent rate of prime – 0.90%. If rates jumped 2%  (once every six months), here’s how you’d make out: As you can see, you’re going to be “payment shocked” either way if rates surge a few hundred basis points. What Else You Need to Know Remember this: If we may state the obvious, the

It feels like we've been in this 'rate-hike' for a while. It's actually only been a few months since the first increase started on March 2, when the benchmark rate sat at 0.25%. Since March, the central bank has raised its benchmark rate a full 3.0%. After today, lender prime rates will (likely) rise to 5.45% from 4.70%. Will the BoC hold now? Possibly. Maybe. 🤞 Inflation is still high, but down from its June 2022 peak. Some prices, like for gas, have eased. House prices are cooling in the larger markets, like Toronto and Vancouver. Home sales are tempering with less robust demand — tapping the brakes on the market insanity that brought intense bidding wars and no-conditions offers. Your variable rate mortgage payments are about to increase again With your Adjustable-Rate Mortgage (ARM), your floating payments will float higher in your next full payment cycle. For example, on a $500,000 mortgage, if you have our current lowest variable rate of 3.50% your rate will now be 4.25%, which means an extra $200 per month to soak up. Are variable rates still popular? Despite the BoC's recent rate hikes, our clients are still interested in a variable rate over a fixed

Pay your mortgage off Faster! This is one of those money hacks I love because you only have to make one small change, and it takes care of itself. By moving to accelerated bi-weekly payments and bumping that payment by $25 each year, you can owe $21,582.13 less at the end of the 5 years, reduce your amortization by nearly 6 years, and save almost $2,000 in interest. Let's go through an example. 5 Year Fixed Mortgage with Monthly Payment Mortgage Amount: $400,000 Interest Rate: 3.5% Amortization: 25 Years Monthly Payment: $1,997.09 Over the 5 years, you will make 60 payments on your mortgage. Total Interest Paid: $64,944.84 Total Principal Paid: $54,879.96 Mortgage Balance: $345,120.04 5 Year Fixed Mortgage with Bi-weekly Accelerated Payments In this example, there would be an annual increase to the bi-weekly payment of $25.00 once per calendar year. Mortgage Amount: $400,000 Interest Rate: 3.5% Amortization: 19 Years, 1 Month Bi-Weekly Accelerated Payment Year 1: $998.54 Year 2: $1,023.54 Year 3: $1,048.54 Year 4: $1,073.54 Year 5: $1,098.54 Over the 5 years, you will make 130 payments on your mortgage. Total Interest Paid: $63,098.11 Total Principal Paid: $76,462.09 Mortgage Balance: $323,537.91 With this simple change, not only did you reduce

Financing the Rural Lifestyle If your dream is living in the country,  there are a few extra considerations that come into play when we talk about financing a rural property purchase.  It is important to understand some of these nuances to know what type of property to be looking at to suit your budget and financing options.  For many, we dream of owning a quarter section of land, with a log home tucked away in the woods but that doesn't mean that this type of property is easy to get a mortgage for so before you fall in love with a home, let's explore some of the rules and restrictions which may require some planning before purchasing. Buying Raw Land If your plan is to pick up a parcel of vacant land and build your dream home, be prepared for a higher down payment requirement.  Raw land purchases require commonly in the 35% - 50% down payment category depending on the use, location, province and size of the property.  A 1 acre parcel close to the city for example, might require only 35% down, whereas 80 acres of farm land will require more like 50% down.  Raw land loans also