Rent to Own allows you to become a homeowner today while renting the house you will own in the future. It’s a viable alternative financing who have decided to no longer throw their money away on rent and want to own their own home. You as a buyer will benefit from stability and freedom to do things your way plus the benefit of building equity as your home goes up in value year over year. By switching from renting and owning, the Rent to Own program allows you to pay down a portion of purchase price from your monthly payments; therefore, building you equity that you get back in your pocket and time to clean up past credit problems. In short, Rent to Own gives you access to equity building and buys you time to establish or repair your credit.
That’s why Rent to Own is considered and became popular because it helped millions of people get into home ownership.
HOW MUCH DO I REQUIRE FOR THE DOWN PAYMENT?
The Down Payment is credited towards the purchase of your property at the end of the agreed-upon-term. Although each case is unique, a minimum down payment of $10,000 or more is recommended.
WHAT METHODS OF PAYMENT ARE ACCEPTED FOR THE DOWN PAYMENT?
Any form of certified funds, whether that be certified cheque, bank draft, or money order. You do have the ability to use your RRSP’s for the down payment at the end of the agreed-upon term; however you cannot use your RRSP’s towards the beginning of the RENT TO OWN.
MY CREDIT IS HORRIBLE – CAN I STILL QUALIFY?
If you are proactive and committed to improve your credit situation. Bad things can happen to good people and have gone through some tough times. Fortunately, credit is one of those things that can be repaired with a little time and focus while you are enjoying the house you will soon own. Like anything in life, it all depends on your individual situation. The most important aspect of the program is for you to be honest. YES if you have Bad Credit. You will qualify.
I’M SELF-EMPLOYED OR WORK AS A COMMISSION-BASED EMPLOYEE – CAN I STILL QUALIFY?
Yes. 35% of Canadians are self-employed and approximately one in eight obtain their income through commissions.
HOW DO THE PAYMENTS COMPARE AGAINST TRADITIONAL MORTGAGE PAYMENTS?
When you evaluate all the factors, most payment schedules are lower than paying traditional 5% interest rate mortgage.
CAN I RENT OUT THE PROPERTY?
Yes, of course. You will need to be made aware that you will still remain fully responsible under the terms and conditions of the program, which means you will also be ultimately responsible for any maintenance repairs, and administration required with renting out the property to someone else.
Can I qualify for a mortgage when it comes time?
This is a very important question you should ask yourself before getting into the Rent to Own Program. Are you committed yourself to get home ownership a priority for your family? We do recommend you to get educated on what it takes to get qualified for a mortgage with our help we have a team of professionals that can educate you the responsibilities in becoming a homeowner. There are 3 basic parts that you need to know and be responsible to make homeownership a reality. First is income, you need to feel confident about your situation about how stable is your finances right now. You may have come from a bumpy ride and now have stabilized the income then you should be okay. Second is credit. This is very important to fix or maintain and it comes with discipline and education. We can help you with this and guide. Ask yourself first if you are committed to fix your credit and start paying off debts. Third is equity, this is the easiest part of the program, which is why this program is designed so that you can build a higher down payment from your monthly payments and it can add up faster than you think. So all this becomes a reality on how committed you are in making home ownership a priority.
What Happens If I Do Not Want To Buy The House At The End Of The Lease?
We have many different options; if you need more time we can extend the lease another year. We can help you secure financing, perhaps even be the bank for you. And a final option is you can choose to walk away and owe us no more money, however the money you have paid into the down payment is non refundable. We want to deal with committed people and we will work as hard as you to help you buy this house!
You do not need a large chunk of money for a down payment. If you’ve been held back by the idea that you need a large down payment to buy a good home, I’ll show you that this may not be necessary. If you have been told that you have to save up $10,000, $20,000 or more to put down on a good home, I’ll show you how to avoid this altogether. You will need some money but you’ll be surprised how little.
A good Rent to Own program should be considered as your guidance to help you in the process of obtaining conventional financing. Most people just require a education, tools, and resources that are mostly not available to the public. This is what our program is all about. It really can be that EASY!
There is no housing bubble in Canada. Canada’s economic fundamentals are stronger than most other countries in the world. There is no right time to buy your own home ”don’t wait to buy real estate, buy real estate and wait”. You may be divorced, you may have filed for bankruptcy in the past, you may be self employed, new to Canada or faced with poor credit, but that is NO reason why you should be denied the opportunity of home ownership and it’s quicker than you think.
Smart Reasons to do Rent to Own
Build Equity in Record Time – Equity is among the numerous benefits of homeownership and rent to own. In a well laid out rent to own deal, a portion of your monthly payments will actually go toward an investment – toward equity in your home. Every month a portion of your rent payment is credited towards your down payment. Therefore, your equity accumulates much faster than with a conventional mortgage you may get through a bank or lender because you’re not paying interest during your rent to own period.
Build up a down payment in record time – To increase your chance of qualifying for a mortgage at the end of the rent to own term, it is best to end up with a down payment of 5 to 10 percent of the agreed price.
Minimal Out of Pocket expenditures – As a homebuyer in rent to own, you save on mortgage insurance and closing costs upfront when you enter a rent to own arrangement
You benefit from any improvements you make during the Rent to own period – you are to assume typical homeowner responsibilities. This includes repairs, maintenance, and making improvements to your house. After all, the more you improve the home, the more its value can grow, which means more equity in your pocket because you have added value to your home during the rent to own term.
More time to fix your credit – A rent to own arrangement buys you time to improve your credit to qualify for a great mortgage. On average, a rent to own arrangement lasts three years, but can be as short as two years or as long as four years. In most cases this is plenty of time to fix credit issues while building up equity in a home you will soon own.
Move in Quickly – Most of our homes are vacant and are quick possession. Once you find a home that you love, you can typically tale possession within 30 days. Gathering up your paperwork and reviewing the rent to own contracts can be the most time consuming part the whole process.
You can profit when real estate values goes up – the price you will pay for the house at the end of the rent to own terms is determined before you sign the contract. Your price will be locked in. If appreciation of the home is significant during your rent to own term, you can refinance your home after you take ownership and keep the profit from the appreciation.
You have more flexibility and control – you have full control of the home and can maintain it and often, make improvements during the rent to own period. Smart improvements made to the property will almost always increase the value. and that means additional equity in your pocket when you buy the house at the end of the rent to own.
Piece of Mind in any real estate climate – a rent to own arrangement can offer some piece of mind whether the real estate market goes up or down. For example, if property values plummet, you can negotiate with the investor to continue renting. Should property values go up by the time your rent to own term ends, you may be exercising your option below the market value because you locked in your purchase price. In this case, you would be pocketing extra money.
No risk of foreclosure – Say house prices drop, you lose your job and the lending criteria gets tighter, making a refinance almost impossible. Such a scenario has led millions of Canadians into foreclosure and, as a result, damaged credit. If, on the other hand, you opted to do a rent to own and chose to break the agreement, there is no foreclosure process. There is simply the opportunity for a clean break and your credit is unaffected.
You have some protection from a real estate crash – In a rent to own arrangement, you can escape drastic property value drops easier than if you were locked into a mortgage. If the market collapses and the home appraises below your agreed price, you can choose to cut your losses and walk away. If you walked away from a mortgage, on the other hand, you would lose a lot more, including your credit rating.
Fixed payments – In a rent to own arrangement your monthly costs are fixed. This includes your rent and the option premium amount. Your future purchase price is locked in too. Once you sign the contract, you have piece of mind that those numbers will not change.
EVERY MONTH YOU WAIT, HOUSE PRICES MOVE UP!
Spending all your money on a rent payment is wasting money. You make your landlord rich, but do nothing for yourself. By putting part of those dollars into a “house payment”, instead of the entire amount on “rent”, you create “equity”… value that you own, that later can send your kids to college, finance the start-up of your own business or pay for your retirement. Be your own landlord and build up a future of financial security.
There’s no reason to wait. I can help you own your own home RIGHT NOW.
You can use home ownership as the “foundation” for a complete change in your finances! And, Hey, the Reality is…
Being A Homeowner Makes You Feel Good!
In addition to the smart financial reasons for buying your own home, you will feel better about yourself, your spouse, and your family.
You’ll Have The Freedom To Make Your House Feel Like Your Own Home!
Imagine having the complete freedom to…
Decorate your home just as you please
Do Renovations whenever You Want
Paint Whatever Color Feels Right
Make your own choices
You’ll even enjoy inviting people over to your home.
There is no reason to wait, I can help you RENT- TO- OWN one of my homes RIGHT NOW!
I Love The Home, What Is The Next Step?
All we need is for you to CALL US and BOOK AN APPOINTMENT. We will then contact you within 24 hours once we verify income and employment. Please keep in mind that our homes sell quickly so time is of the essence.