What is Rent to Own?

It is a proven method of purchasing a home.  In fact, before CMHC was instated, rent to owns were a main source of property ownership.

It is simply a lease with the option to buy at the end.

This purchase method does not require you to start with good credit.  It gives you the time to repair your credit and buildup enough down payment to get a mortgage.

What are the advantages of Rent to Own?

– You get help to repair bad credit or build credit.
– Fast approvals.
– You can choose your home outside of our inventory, in your preferred neighborhood
– Start benefiting from the increased property value from the beginning.
– You can save up the rest of the down payment while living in your home.
– Your rent is fair market rent.
– You don’t have to move again.
– You lock up the price. Prices in Edmonton double every 10 years on average. With rent to own you stop that price while saving for the down payment and qualifying for the mortgage.
– You get to enter into an automatic savings program.

What do I need to get into my rent to own home?

– Evidence of an income enough to pay the rent and qualify for the future home value.
– A down payment (minimum 5% of today’s home value)
– Agree to a plan to correct your credit or income so you are able to obtain a mortgage at the end of the lease period.

That is all. Your present credit situation, newness to the country or marital status are not factors.

What initial money is needed?

There is an initial amount needed to get into the home. It is minimum 5% of the property value and gets deducted off of the final sale price. This is recorded on contract and buys you the right to purchase the home at the end of the lease for an agreed price. If you put down more then the monthly payments are reduced.

My credit is bad and can’t get a mortgage.

Good credit is not a requirement to start a Rent to Own. Your credit score responds to exact and known factors. My team includes a rent-to-own credit repair specialist who has his own rent-to-own experience.  So he knows exactly how to help and how long it will take.  He also provides a step-by-step and accountable program to help you stay on track and in the know about how your credit is doing through out the entire rent-to-own term.   Making it easy for you to repair your credit in time to purchase your home.

How much will my monthly payment be?

The monthly payment will be  fair market rent plus the monthly option consideration payment.  For the length of the lease your rent amounts are not  increased.

What are Monthly Option Consideration Payments?

The amount of your monthly payment that goes towards the rest of the down payment.  Your automatic savings plan.  The option consideration payments build up over the life of the lease and reduce the final mortgage amount. These credits are recorded in a contract and fully documented so that when you go to the bank for a mortgage they act as your down payment.

These are also what gives you extra credit leverage with the banks.  Normal rent does not qualify as proof of your credit worthiness.  Rent-to-own monthly payments though, with monthly option consideration payment do.   They work for your credit just like a car loan does, but better.  Because these payments are so much closer to a mortgage payment.

How long is the Lease period?

One to five years with three years being usual. This gives you time to fix your credit and build up the down payment.

What is the final purchase price of my home?

The purchase price is agreed upon at the beginning of the lease. The initial down payment gives you the contractual right to buy the property at that price in the future. You know all the numbers from the beginning with both purchase and rental amounts locked in.

What if I don’t want to buy the house at the end?

If life circumstances change so that it is not in your best interest to buy then you can walk away. You have the option to not buy. You also have the option to buy and resell on the open market, which is beneficial if prices have escalated.  You do stand to lose all monies however.  A rent to own is a serious commitment and may require some life changes.  It is in your best interest to make sure that you are fully dedicated to do what it takes to become a home owner.

My credit is so bad I’ll never get it repaired. What do I do?

Most credit can be fixed in a few years and the very worst in four years. You only need to know how to do it.  Along with our credit repair specialist, we also have mortgage brokers who can help and specialize in rent-to-owns.  They know exactly how to secure the lender and can help you come up with a plan leading to mortgage approval.

Should I get a Lawyer?

We recommend you take the contracts to your lawyer and obtain a legal opinion.  Many lawyers have looked at our contracts and one more will not hurt.  When you will need to hire your own lawyer at closing, you will pay his fees.