Rent To Own Home Program For Ontario
Watch Our Slide Show To Learn How Our Rent To Own Program Works
Are you looking into rent to own because you need a bigger down payment? Our first step is ALWAYS to try to get you a mortgage. We are able to do so for many people who thought it would be impossible. If you qualify for a 95% mortgage, we even have strategies to come up with your 5% down!
For those who need 2 or 3 more years to qualify for a mortgage, we proceed with a rent-to-own arrangement …
Using our rent-to-own system allows you to stop moving from one rental to another, stop being at the mercy of landlords, put down permanent roots and invest in yourself.
You will be leasing a home for 2 – 4 years, during which you accumulate a down payment of between 5% and 15% of the home’s value. At that point, you should be qualified to get your own mortgage and purchase the property.
What is Rent to Own?
The process works similar to leasing a car. Our program offers families that have a small down payment and/or poor credit a chance to move into their dream home today without having to qualify for a mortgage. In addition, a portion of your monthly rent goes towards the purchase of the home. Our program helps you save thousands of dollars in a multi-year lease that automatically builds your down payment. It’s that simple.
If you are a renter who is tired of paying another person’s mortgage and want to own your own home, the option called “Rent to own” (RTO) or “Lease To Buy” is a means of acquiring ownership over time without taking on debt now.
Please DO NOT hire a realtor to help you shop for a rent-to-own house, as they may not know what our investors’ criteria are for choosing investment properties (plus, their buyers agreement with you will be irrelevant because an investor, not you, will actually be purchasing the home for you to lease).
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Most people are still unaware of RTO housing and believe that there is only one way to become a home owner – getting a conventional mortgage through a bank or an agent. The common issue many people experience, especially in Canada, is the strict criteria used to determine who will get a loan and who only has the option to rent.
What happens if you are not approved by the banks?
Have you been turned down for a mortgage because you …
- Lack the down payment that the bank wants?
- Have credit issues as a result of bankruptcy, divorce, job loss or health issues?
- Have good income but have no credit history or are self-employed?
We make it easier for you and your family to be qualified and get into a home today. Once you are approved and moved into your home, we continue to help you along the way in becoming a home owner.
How Do RTO Down Payments Work?
With most Rent to Own contracts, you will pay the owner an up-front “option” deposit (your option to buy the house), also known as a “down payment”. This money is your vested interest in the home and will be fully (100%) credited to you when you get a mortgage to buy the home, usually 3 years after you move in.
Some More Benefits …
1. Minimum Cash Out of Pocket: When you purchase a home conventionally, you must pay at least 5% (up to 20%) down plus closing costs.
2. Profits from Appreciation: Since the sales price is locked in before closing (as specified in your agreement), any increase in property value above the agreed purchase pricing is “bonus” home equity for you.
3. Credit Problems are Okay: Qualification restrictions simply do not exist. You will be approved at the sole discretion of RTO Partners.
4. Clean up your credit issues: By re-establishing your credit with our mortgage specialist you will attain a lower interest rate at the end of the term.
5. No Lengthy Mortgage Approvals: Your approval will be based solely at the discretion of the seller instead of a lender who can take up to a month (or longer) to render a decision (which is very often a “No”).
6. No Taxes, Less Liability: Since you do not own the home (yet), you will not have to pay property taxes and your liability exposure will be dramatically reduced.
7. Maximum Leverage: You are spending very little money to control a very expensive, and potentially profitable, piece of real estate.
8. Flexibility: You get to purchase the home anytime during your agreed upon term.
9. Know your Purchase Price: Knowing what your purchase price is provides transparency and a benchmark for all of your credit needs to successfully secure a mortgage on your home.
10. No rent increases for 3 years: If you are a renter, your landlord usually raises the rent each year. The rise in rental amount can be anywhere from $25 to hundreds of dollars, depending on your area.
11. Free property Inspection: We ensure the property is professionally inspected prior to you moving in.
1. Control of the Home: You will be put in full legal control of the home for a specified period of time without actually having to own it.
2. Quick Move in Time: You may be able to take possession of the home in less than two months.
3. Time: Before you actually buy the home, you will have 36 months to repair your credit, learn what you need to do to qualify for a mortgage, and get settled in the neighbourhood (and schools etc.). For some rent to own arrangements (depending on the property owner), you can extend your lease by anywhere from 1 year to multiple years if you need more time to qualify for a mortgage.
4. Minimal Maintenance: Any maintenance problems that exceed a certain amount of money are delegated to the seller.
5. Choose your home: If you’re interested in choosing your own home, let us know so we can help. We will advise you on the proper locations and features to look for.
6. Customize your living space: Feel free to add a patio in the backyard, finish your basement, paint etc.
7. Freedom of choice: We are obligated by law to sell you the property, however, the choice is yours in the end.
8. No surprises or fine print: Everything is explained up front and there is no hidden cost. We urge you to have your own trusted real estate expert or lawyer look everything over.
9. Do your laundry in your own house: Most apartments and some rental houses don’t have washing machine and dryer in the unit or home. Just think of the extra time you save by doing your laundry in your own house.
10. Create a more stable life for your kids: Each year you live in your house, you are creating roots to your community. Your kids will grow up with the same friends at school and you will eventually know many other people in the town as well.