What is RENT TO OWN?

Rent to Own is an innovative way to purchase your own Home and is a great alternative for people who otherwise are unable to do so at this time. Rent To Own is a WIN-WIN opportunity for all the parties involved.

Why Rent To Own?

Home ownership is primary goal for most Canadians - both for raising their family and as a source of building their wealth and securing their family's future. But as a result of confusing mortgage rules or lack of knowledge, a lot of people end up paying their landlord's mortgage by paying them rent month after month. Rent to Own program provides you an alternative to the traditional home buying process.

Benefits of Rent To Own?

Rent to Own program provides you with an opportunity to buy some time to fix/build your bruised/non-existing credit and/or to save enough funds for your Down Payment. So, why not start enjoying your house now rather than waiting to fix/build your credit or save enough down payment and then moving into your house !

Who is Rent To Own for?

This program is specifically designed for people who are unable to qualify for a traditional mortgage, but are eager to move into their own home. There may be different reasons why they are unable to qualify at this point, for e.g.:

- Bad Credit
- No Credit History
- New to the Country
- Self-Employed
- Not enough cash for Down Payment
- Past Bankruptcy

Anyone in any of the above situations can benefit from this program. They can start to live in their own home while fixing the above issues.

How does Rent To Own work?

Simply put, you would be renting a property for an agreed upon term, pay the rent and continue to save for the down payment of your eventual home purchase. At the end of the term, you arrange your financing and become the legal owner of the home. Below is the step by step explanation of how this program would work:- You submit your information to us
- We would analyze your situation and present your case to one of our many investor clients
- Once approved by the investor, you work with one of our experienced Realtors to find the house of your dreams and within your budget
- We would negotiate the price for the home and have the home purchased by our investor client
- You will sign a Rent To Own agreement and a Standard Lease Agreement(Ontario) with the investor client
- You will move into your home and start to pay the rent and start to save for the down payment of your home purchase at the end of the term
- At the end of the term, the title of the home is transferred to your name and you become the legal owner

What is your Fee?

The best part of this program is that you do not have to pay us any extra fee for helping you buy your home. We are satisfied with the commissions we earn by buying and selling the properties.

 

How much Deposit is required ?

• You will be required to pay 3% (of the purchase price) upfront.
•  Remaining 5% will be collected evenly throughout the 3 Year Term of the Lease agreement.
• Total Deposit (3%+5%) will be applied towards the closing after 3 years.
• First and Last month's Rent

Example:

Lets say if you want to buy a $500K property with the Rent To Own program. You will be on a 3 Year Lease term + Rent to Own agreement . Which means after the end of the 3 year Lease term you will apply for the mortgage.

Property purchase price in future (at 5% appreciation) = $578,812.50 (Average Appreciation in GTA  is approximately 8-12%)
Deposit : 3% = $17,364
Monthly Rent (Approx) = $2100
Monthly Downpayment Installment (Approx) = $900
Total Monthly Payment = $2100+$900 = $3000 + Utilites

Total Saving after 3 years: $100,000 (If you currently paying $2500 rent & property appreciates at 10%)

Hopefully, after this 3 year period, you must have improved you credit score to a Good Credit Score (650+) and must have paid of your debts and now you should qualify for the mortgage. Title will be transferred to your name after the successful closing.

Downside!!!

For any reason, if you do not qualify for mortgage after the 3 Year Term, you will loose all the deposit ( 8% of the purchase price).