Understanding  Rent-to-Own

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It takes time to save for a down payment or fix credit problems but you don’t have to wait. Our program helps you save your down payment while you repair your credit.

WHAT IS RENT-TO-OWN?

Rent-to-Own (also referred to as RTO or “lease-to-own”) is an agreement between a home seller or owner and buyer that allows the buyer to move into a home immediately. The buyer agrees to purchase the home at the end of the term for an agree upon price. The buyer during the term is considered a tenant of the property. During the term, a portion of the rent is accumulated as credits toward the down payment so the buyer has the down payment ready at the end of the term.  Throughout this process, we work with tenants to help improve their credit and help them qualify for the mortgage at the end of the term.

 

How Rent-To-Own Works

 

  1. We work with a qualified tenant-buyer (TB)

  2. The TB and our team find the house they want to buy

  3. We buy it for them and agree upon rent amount and terms

  4. After 24-48 months, the TB purchases the house from us.

Note: We also work with non-qualified applicants to find alternate solutions, as we are a solution oriented company.

Is Rent-to-Own a good option for me?

 

Life happens and people get into unpredictable situations. We get it. This causes some individuals to not always qualify for a bank mortgage or save up enough of a down payment. Individuals who are entrepreneurs or self-employed may make a great income but represent risk to the bank, and therefore turned away regardless of down payment available. Rent-to-Own is a good option for those looking to live in the home of their dreams today and work on the "formalities" of qualifying at a bank over a term of as little as 24-months.

 
 

Consider Rent-to-Own if you have:

  • Poor credit

  • Saved a partial down payment

  • Self-employed

  • New immigrant

  • Recently divorced

  • Starting over

 

 

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FAQ

Is Rent-to-Own better than renting?

 

Everyone's situation is different. Not everyone wants to own a home during their lifetime so home ownership is a personal decision. The benefits with Renting-to-Own is that you have the option to purchase the property at the end of the term, whereas with renting, you never have that option. In addition, you know what  your purchase price will be when starting the Rent-to-Own term. And, unlike renting, during your term, a portion of  the rent you pay will be credited towards the down payment, helping you further qualify for the home purchase. In a way, Rent-to-Own is a forced savings and discipline program to help you focus on making your home purchase.

 

I have bad credit or no credit. Will I qualify?

 

This is common among Rent-to-Own tenants and it's part of our program to have you work with our team to repair your creidt. It's an educational aspect of our Rent-to-Own program. Our goal (and yours) will be to qualify for your own mortgage at the end of the term. 

 

Who is Rent-to-Own designed for?

 

Rent-to-Own is for people who are may not qualify for a traditional mortgage at a bank and typically do not want to pay the high interest rates from a private lender.  If you only have a low down payment, bruised credit or are self-employed, the bank may not qualify you.  Couples who are recently divorced have found Rent-to-Own to be a great option as they establish their own credit history and save money. New comers to Canada have also benefitted from Rent-to-Own programs as they establish their credit in Canada.

What home can I choose?

The home you want (within reason!). For example, if you don't have an income to support a million dollar home, we won't be able to rent-to-own it to you. We will work with you to look at your current income and see which price range of homes works best for your to ensure your success as a new home owner. You will work with one of our Realtors to find the home you love; one that you want to own.

What price am I paying for the home?

This is an open conversation we have with you and it's based on appreciation trends from the last few years in an area. We know that it would be hard to qualify for a home if the purchase price is well above others at that time as pretty much all lenders require an apprasial. If we set the price of the home too high, this will make it hard for your to qualify for the mortgage. The fair process is to work with average appreciation rates to ensure your success. 

How long is the Rent-to-Own term?

We do not have a set "must" for term of the Rent-to-Own. From our experience, most terms run two to five years, with an average of three. But the term depends on your situation.  Each agreement is unique and created based on the clients current situation (down payment, credit, etc.) and their realistic goals.

SUMMARY

  • We help you BUY THE HOME YOU WANT

  • You KNOW THE FINAL PURCHASE PRICE at the start of the term

  • We help you SAVE FOR YOUR DOWN PAYMENT via rent credits

  • We help you REPAIR YOUR CREDIT so you can qualify with lenders

  • Any appreciation higher than the final purchase price is for YOUR ADDED BENEFIT

Can I qualify?

 

The qualification process is simple. 

 

  1. Fill our the application form on our the "TakeYour First Step" page or give us a call at 416-684-0860.

  2. Provide a deposit of at least $5000 which will be used towards the down payment.

  3. Agree to work with our credit specialist to repair credit (if necessary) and ensure you qualify during the set term to purchase the home.

  4. Work with our team to find the home of your dreams.

  5. Show us you have a solid, verifiable income.

  6. Review the terms, sign the agreement and move in!

 

It's very straightforward and we are hear to work with you and answer any questions you may have.