Are you currently renting a home? Have you resigned yourself to being a tenant because you don’t think you can obtain a mortgage? If so, you’re not alone. Thousands of Canadians are in the same position.
Many would-be buyers have poor or non-existent credit. Some are self-employed, while others are newcomers to Canada. All too often, their life circumstances create barriers during the mortgage financing process. The good news is, you might have more options than you think.
A rent-to-own program may be the key to helping you make your homeownership dreams come true! If you’re interested in going this route, here’s what you should know…
Rent to own: a path to ownership
In the simplest terms, a rent to own arrangement allows you to lease a home—and save up to buy it at the same time.
A portion of your monthly rent will go towards your down payment, making for a seamless transition if you purchase the property down the line. There are many benefits associated with taking this step. When you work with us, they include the following:
It’s easier to save
By the end of your lease term, you’ll likely have a more significant down payment to qualify for a mortgage than you otherwise would. When you work with us, the price of the property you choose will also be locked in at the beginning of the process.
You can build equity
Your lender has a stake in your property until you pay off your mortgage. The portion that you own free and clear is your equity—and you can tap into it when you need it! By renting to own, you’ll get a head start on building your equity.
You can make yourself at home
With our rent-to-own program, you can pick any home that suits your lifestyle and budget. You can also live like a homeowner, which means having the freedom to renovate and grow your future home’s value in the process.
It’s low stress
You’ll enjoy fixed monthly payments during your rent-to-own term, and there are no hidden fees to worry about. In other words: there’s no reason to concern yourself with unexpected hassles.
Is renting to own right for you?
When you’re ready to start building your equity (instead of your landlord’s), renting to own can set you on the right path. But first, you’ll want to assess whether it’s the ideal solution for you. Here’s who our program is best suited for:
• Canadians who are facing credit challenges
• Self-employed individuals
• Newcomers to Canada
• Home buyers who have had their application for a traditional mortgage rejected
• Individuals with consumer proposals
Wondering whether you’re eligible? In order to qualify, you’ll need to have a minimum down payment of 5 per cent. The average timeframe for the program is 36 months, but it varies from person to person.
During this time, the process can help you repair your credit score, save for a down payment, and build up more income that can help you qualify you for a transitional mortgage if you’re self-employed. Are you ready to learn whether renting to own is right for you?