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Dear friend,

Our 'Rent to Own' program is designed to help you into your own home, right now, even if you are in some situation that makes it difficult or inconvenient to actually buy today.

INFORMATION ON RENT TO OWN HOMES - LEASE PURCHASE HOMES - LEASE OPTION HOMES.

Rent-to-Own homes or commonly otherwise known as Lease Purchase Homes, Lease Option Homes, Lease Option to Buy Homes, Houses for Lease Purchase Option - are a wonderful alternative for people who would like to purchase a home right now but may need a little time to acquire a down-payment or build up their credit rating.

So what exactly does rent to own or a lease purchase entail? A standard rental lease allows you to live in the home by usually paying associated move-in expenses such as a deposit and/or security deposit. With lease purchase homes or lease option homes, the "option" agreement gives you the right to purchase the rental home within a certain period of time at an agreed upon price. There is also usually an initial "option" amount due upon signing (similar to a rental deposit) and a regular monthly payment, part of which applies to the purchase price of the lease option home.

Some Advantages of "Your Rent To Own Home" program are:

  • Compared to traditional financing, with the "Your Rent To Own Home" program you pay a lower down payment. This is "down payment" is called your option to purchase consideration and it is fully (100%) credited to the purchase price of the property. 

  • Past credit issues are often severely frowned upon by traditional lenders. We understand that bad things can, and do, happen to good people and we are far more gracious when it comes to the qualification and application procedure.

  • Your rent money is finally working FOR you, for a change... When paid on time, part of your rent to own payments can be actually credited to the final purchase price. What does this mean??? It means that with each rent payment you are reducing the final purchase figure on your home. Buying a lease option home through a rent to own lease is one way to save for a down-payment while you get to enjoy living in the house. 

  • Perhaps one of the biggest benefits is not having to pay the upfront costs associated with conventional loans. These fees include; points on the loan amount, loan origination fees, underwriting charges, appraisal fees, credit reports etc, all of which can amount to thousands of dollars before you even step foot in the door. 

 

In a nutshell, here's how it works.

     

  • You will need to complete an application to take out a lease option on the property. An application fee is payable when the application is lodged.
     
  • Consult a Lawyer. It is recommended that you consult a lawyer for an explanation of the Lease Option Agreement to ensure that you fully understand this type of agreement as you must be willing to see the option all the way through and make your payments on time or you could risk losing the right to purchase the home and any additional option amounts paid.
     
  • Sign the Deed of option.
     
  • Sign the Residential Tenancy Agreement.
     
  • View and sign Contract For Sale.
     
  • Complete the periodic payment authority for direct debit of rent and option fee payments from your bank account.
     
  • Pay the Option fee.
     
  • Move into your new home, look after the property, pay your rent on time when it’s due.
     
  • At least 3 months prior to the expiry date of the Option, advise that you wish to proceed and buy the property. Seek bank or other financing (We can help). Then arrange for a Legal Representative to handle the final purchase on your behalf.
     
  • Purchase of the property is completed and you stop paying rent forever. 
     

A Simple Example:

Comparative sales of similar properties in the neighborhood of "Your Rent To Own Home" suggest that the property could be worth $280,000.

This is your purchase price:  $280,000

A possible deposit could be $10,000 (this is less than 3% and is negotiable, obviously the higher your deposit the lower your monthly payments) 

Your Monthly payments on the Balance $270,000 at say,,, 8%* could be approximately $1997 per month plus utilities etc.

Depending on the arrangements made in the purchase contract, of the $1997 per month, sometimes up to $200 could be credited to the deposit balance. This is obtainable on completion of the purchase. Over a 2 year period this will ad up to almost $5,000 in directed saving of the principal.

This is by far a better alternative to waiting and trying to save a Deposit the traditional way and the rates we provide are way below that of traditional lender's "Low Doc" loans and those of Hard Money lenders who's rates can be as high as 15% or more.

 

 

TO EXPRESS YOUR INTEREST in "Your-Rent-to-Own-Home" Program, please contact us via the Hot list form on the Home page. 

* Interest rate may vary depending on each property and is subject to variable rate changes

To learn more about real estate investing in Canada click here.

 

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