877 813 6171 chris@rtopartners.ca

“Rent Back” or “Rent To Own Financing” are the terms used to describe any situation where a home owner needs to access their equity in order to stay in their home as a renter.

  • you, a home owner, cannot renew your mortgage or are behind on payments (or need to be removed from title), because of temporary financial problems, divorce, identity theft etc.
  • there is at least 10% – 15% equity in your home but it cannot be accessed to rescue your situation (unless you sell) – refinancing is not possible
  • an investor (landlord) buys the house, and the former owner (you) now become the tenant in a rent-to-own agreement
  • the remaining equity is freed up upon transfer of the home to the new owner
  • you (the tenant) use this equity to make your down payment and in most cases pre-pay 6-18 months of rent (imagine all that time without rent hanging over your head – this is the ideal period to get your financial life back in order)
  • down payment is minimum $15,000 or 6% – 10% of house value for rent-backs (it is sometimes difficult to find an investor who will work with us on a rent-back deal unless you make a 10% down payment)
  • you follow a recommended plan for credit repair (if needed) and mortgage qualification, and take back ownership of the house after 2 to 3 years

You need to be aware of the expenses involved. We try to be as fair as possible, and in fact our requirements are usually less than our competitors in terms of down payment etc. Most RTO companies require 10% down payment for rent-backs. Depending on your new landlord, you may be required to pay for the house inspection.

Your minimum down payment will be $15,000 or 6% of the house’s value. Your real estate fees and RTO Partners fees will likely be a total pre-agreed flat fee of between $5,000 and $10,000. This will be agreed upon before proceeding (this covers the work of finding the new owner and transferring the house – a realtor’s services are required). IF the landlord wants you to share any other fees, you will be warned, and you will have plenty of time to negotiate or say “No”.

For rent to own financing scenarios, we absolutely cannot proceed until you have provided the following:

  • a title search of your home so that we are not surprised by any liens or 2nd/3rd mortgages which the home owner may or may not have been aware of …
    (at google.com, search “(your city) (your province) title search” and choose an option
  • a letter from a realtor showing us an objective estimate of the market price of your home
  • a pay-out letter from your lender, which states your cost to discharge your mortgage, including the balance and all arrears and penalties

Prior to asking for these 3 requirements, the majority of our attempted rent-back deals fell through (wasting us hundreds of hours) because of surprises on the house title, mortgage discharge amount, and finding out that the home is not worth nearly what the owner says.

In Danger Of Losing Your Home?
Use This Form To Apply For Rent-To-Own Financing


TERMS

I declare that the application is true and I herewith give my permission for anyone contacted to release the information of the applicant above to real estate professionals (mortgage agents, real estate agents, or their authorized agents), at any time, for the purposes of entering into and continuing to offer or collect on any agreement pertaining to rent-to-own housing or a home purchase. I further authorize RTO Partners or their Authorized Agents to verify the application information including but not limited to obtaining criminal records, contacting creditors, present or former landlords, employers and personal references, whether listed or not, at the time of the application and at any time in the future, with regard to any agreement entered into with RTO Partners or its Partners. Any false information will constitute grounds for rejection of this application, or RTO Partners or its Partners may at any time immediately terminate any agreement entered into in reliance upon misinformation given on the application. By providing the home phone numbers and email addresses above, I/we hereby authorize RTO Partners or its partner (realtor or mortgage agent) to contact me/us at my/our phone numbers or email addresses.
Consent to Release Information: The applicant above authorizes RTO Partners to disclose and forward any documentation necessary to real estate professional(s), for the purpose of providing requested services. This includes Driver’s Licence, SIN numbers, current residence details, employment details, bank account details and any/all other documents.
I AGREE to the “Terms And Conditions”, “Disclaimer” and “Privacy Policy” located on rtopartners.ca.