There are numerous benefits to our Rent To Own program that help both experienced home owners as well as first time home owners and everyone in between. Listed below are the main benefits that you will receive becoming a home owner through our Rent To Own program.
1. Time Is On Your Side: Our Rent To Own term allows you to move into your new home while you resolve the reason why the bank will not qualify you for your own mortgage at this time. On average, we will carry the financing for you for a 2 year term and during this period, you have time to save for a larger down payment, improve your credit score, establish your employment history and resolve any other issues to satisfy the bank’s requirements.
2. You Have Faster Equity Growth: Through a Rent To Own purchase, equity can accumulate exponentially faster than financing from a bank as your equity rate of growth is increasing at a fixed rate each time.
3. Credit Issues, Down Payment Issues and Employment History Verification Issues are Okay: We work with good, fair and not so fair credit, people who are new to Canada and people who have not yet established a credit history. We also work with people who are self employed or have difficulties proving their income, single incomes, consumer proposals and previous bankruptcies and people who do not have a large enough down payment for the bank at this time.
4. Maximum Leverage: You are spending very little money to have the opportunity to be involved in a very expensive and very profitable investment.
5. Minimum Money Out of Your Pocket Upfront: When you purchase a home through the bank, you must pay closing costs, pre-paids (property taxes, or maintenance fees that your notary/lawyers include in the statement of adjustments), and a down payment. These costs can really add up. With our Rent To Own purchase plan, on average, you pay only your first months payment, one time security deposit (half of your monthly payment), or your down payment upfront. You can also provide your down payment in installments over the duration of your term.
6. Increased Buying Power: Your buying power is dramatically increased through a Rent To Own purchase. You can purchase through Rent To Own for as little as your first months payment, your security deposit (half of your monthly payment), and a minimal down payment or in some cases, zero down payment. Compare that to the bank/lender who may require up to 10% down payment upfront plus closing costs and prepaids (property taxes, or maintenance fees that your notary or lawyer includes in the statement of adjustments).
7. You Can Provide Your Down Payment In Installments: Since we are flexible with our financing and we can get creative, we will allow you to provide a down payment at any time over the course of your Rent To Own term without charging any fees or penalties. You can also make monthly down payment installment payments on top of your payment each month.
8. Your Down Payment is Credited Towards Your Purchase Price. If you provide a down payment during the course of your purchase term, your funds will be fully credited towards your purchase price when your obtain your own mortgage and transfer the property title and mortgage title into your name.
9. You Build Equity Through Your Payments Each Month. There is a portion of your monthly payment called a credit that builds over your Rent To Own purchase term. This amount is fully credited towards your purchase price when your obtain your own mortgage and transfer the property title into your name. You are basically receiving the same amount of principal reduction each month through your payments as if you already had the mortgage today. If you do not provide a down payment, you may not receive monthly payment credits, this is determined on a case by case basis.
10. Frequently, No Large Amount of Down Payment at Closing: If you have already provided a significant amount of down payment over your Rent To Own term there will generally be very little or nothing left for you to come up with for a down payment for the bank. In addition, your monthly payment credit amounts will also be applied 100% to your down payment amount.
11. Your Purchase Price is Established Upfront: Your purchase price is established before signing your Rent To Own purchase agreement. You have piece of mind that the purchase price remains secure for your Rent To Own purchase term.