Rent-to-Own Benefits

Rent-to-Own / Lease-Purchase Program

Who can benefit from this program?

Buyers who cannot immediately qualify for a mortgage loan because of lack of credit, credit problems, job issues, self-employment, being new to the area, debt-ratio challenges due to an inability to show sufficient income, or other factors.
Buyers who want to live in a house, duplex, townhouse, or condo instead of an apartment.
Buyers who want to build equity in an investment instead of just throwing away money on rent.

How does the Rent-to-Own Program benefit these Buyers?

It makes it possible for the Buyer to live in a nice property while they work on getting qualified for their own mortgage loan.
Gives the Buyer a stake in the appreciation of the property, essentially locking in tomorrow’s value at today’s prices.
Provides Buyer with the stability and pride of ownership.
Provides the Buyer with incentive to achieve a significant home ownership goal.

What are the steps involved in the Rent-to-Own Program?

Potential Rent-to-Own Buyer or "Tenant/Buyer" (you!) responds to advertising or signs on or around property or finds this website.
Tenant/Buyer contacts us so that we can determine the right property fit (how much money they have to put down, how much monthly payment they can afford, when they want to move in, etc.)
A licensed Mortgage Broker reviews Tenant/Buyer’s questionnaire info to help estimate how long it will take to secure new mortgage loan using the 5% down CMHC Purchase Program.
Assuming Tenant/Buyer has a good chance of qualifying for a mortgage in a given period of time, we add you to our buyers' list and advise our Realtor partners of your needs, desires, and capabilities. Realtor invites approved buyer/tenants to view available best-fit properties either now or when a good fit comes up. Buyer decides on one of them.
Realtor reviews how everything works by going over the Rent-to-Own/ Lease-Purchase program on the phone or in person. Monthly payment amount, down payment amount, eventual sales price, closing date, move-in date, and any other terms are negotiated between owner and buyer. An offer is written up and accepted by the property owner.
Tenant/Buyer completes a full mortgage broker application along with an application fee. The application is processed and, if approved, a formal lease and an option agreement are presented by the Realtor and signed between the owner and tenant/buyer. The tenant/buyer's option deposit/down payment cheque and first month's rent are deposited into the Realtor's trust account. Tenant/buyer moves in as a tenant on the prescribed date and the deposits are transferred to property owner, less any applicable fees.
When Buyer qualifies for their new mortgage, they exercise their option to purchase and complete the purchase using a lawyer at previously agreed-upon sales price.