Are you a member of the Better Business Bureau?
Yes, we have been an Accredited Member of the Better Business Bureau with A+++ rating since June 1999.
Does your Company provide financial services to improve/repair my credit score, reduce my debt or provide down payment plans? Is your service FREE?
Yes, our Company provides FREE, no obligation financial consultation and services. We provide you with a FREE Financial Make Over that will get your money working for you! We can improve and/or repair your credit score, provide common sense debt solutions and down payment plans that will get you on the fast path to home ownership.
Contact Us: 604-RTO-HOME (604-786-4663) or Register with us online: http://readysetown.ca/register-now/
Do Rent To Own and Lease To Own mean the same thing?
Yes, both Rent To Own and Lease To Own mean the exact same thing.
What Does Rent To Own Mean?
Rent To Own is a contract that is signed between You and the Seller for an agreed price, length of time, (usually between 12 and 36 months), although we have seen contracts for a longer period of time. You pay a down payment of usually between $5,000 through $60,000. You don’t have to qualify for a mortgage from the bank until the end of the contract because the Seller leaves his/her mortgage on the home.
A certain portion of your monthly payment goes towards your purchase price each month in the form of a monthly credit. These credits build over the life of the agreement to add to your down payment. At the end of the term you find your own bank financing and transfer property title into your name. The Seller cannot change or get out of this agreement during the term of the agreement. If you wish, you can sell the home at any time during the contract and pay the Seller out. For all intent and purposes, this becomes your home.
Why are these homes offered as Rent To Own rather than just being sold?
In British Columbia, the real estate market tends to follow a cyclical pattern with long stretches of slow difficult markets and at times relatively hot markets. The overall B.C. provincial economy has not been great in the last few years although the outlook in the long term is now positive. Often, houses sit on the market for many months (sometimes up to 24 months), with very few buyers making offers. If you owned a home that was empty in which you were making payments on, you would be very anxious to have it sold as quickly as possible. Many homeowners are in this position and would rather sell their house over time than lose thousands of dollars while it sits vacant, or sell at a price far lower than its current value.
Our Company buys homes from Sellers in this position. We also buy homes that are about to go into foreclosure or are in distress for a number of reasons. We are then able to offer them at a fair price to buyers like you who cannot qualify for a mortgage today, but would be able to qualify at a later date, in 24 months years for example.
Am I paying more for the house than I would if I purchased it the traditional way?
Since we work directly with the Sellers, there are no real estate commissions, legal fees and other carrying costs. We obtain these houses at a very good price, make a modest profit and you pay virtually the same price as you would if you purchased it the traditional way.
When is the purchase price set?
The purchase price is set before you move in. The purchase price of your home is set today for future delivery, similar to an equity option or like leasing a car. The term of the Rent To Own agreement is also determined at this same time, at the time of negotiations.
Why buy instead of waiting until I can qualify for a mortgage?
That is a decision you have to make. Some analysts have suggested that the long term trend especially here in the Vancouver Lower Mainland and FraserValley is for a higher price level considering that by 2025 it is estimated to be another 1 million residents living here. Of course, their maybe several reasons why you don’t qualify for a mortgage at the present time. Many of our clients have been renting for years and can never find a way to get themselves off the renting treadmill. With our creative financing techniques, you accumulate down payment credits. You also have the professional consultation of our staff to put yourself in a strategic financial position.
How long will my Rent To Own agreement last?
Rent To Own agreements are based on the financing, but anywhere from12 to 36 months. We structure our agreements so that you can complete the purchase at any time during the term by simply advising us. We will do the rest to complete our agreement with you as quickly as you want us to do it.
What if we can’t qualify for a mortgage at the end of the term?
Our goal is to sell the home. We do not want to get the house back. We will do our best to extend the Rent To Own Agreement or work out an alternative solution to meet your needs. However, if you feel that you may not be able to qualify in the number of years allotted, then Rent To Own may not be the solution for you.
No one I know has ever heard of this before, is this legal?
During the last 10 years or so, Rent To Own has become very popular in the residential real estate market. Rent To Own is now an agreement used all across Canada including Vancouver, the Lower Mainland and Fraser Valley here in British Columbia. As for our Company, we are part of a large network of people who specialize in creative real estate solutions for Buyers and Sellers. Some of our Associates have been doing Rent To Own agreements for well over 15 years.
How are Rent To Own monthly payments calculated?
When we obtain these properties, they have existing mortgages in place. The Rent To Own monthly payment is based on the mortgage cost (principal, interest and insurance) plus the property tax and strata fees (in the case of a townhouse or condo). We compare the mortgage cost structure and market economic rent for the property. At times the Rent To Own monthly payment can be lower than a comparable market rent, a subsidy to you. This occurs because the mortgage registered on title could be much less than the value of the home. However, as a general rule of thumb, Rent To Own monthly payments are quite similar to the market economic rent for the property available. If you decide, you can also make additional monthly payments, so you can increase your down payment over time.
How does making larger monthly payments help me?
The more equity that you have in your new home, the better chance that you have in obtaining a conventional mortgage from a bank or other lending institutions and at preferred interest rates.
What Methods Of Down Payment Are Accepted?
All methods of payment are accepted. Unlike most lending institutions, we accept borrowed funds. If you have a close friend or relative that will lend you the money for your down payment, you can use that in our program. You may also be eligible to withdraw or borrow from your RRSP’s without penalties. You can also get into our Rent to Own program with zero down payment but your monthly payment will be higher. You can provide your down payment in installments, each time you provide a significant enough amount, and your monthly payment will go down.
What will happen to our initial down payment and down payment credits if we can’t complete the transaction?
It is our goal to do whatever it takes to help you take ownership and we will look at all avenues to help you complete. If after all possible avenues have been looked at and you are still not in a position to qualify for whatever reason, you may lose your down payment similar to car leasing and you will not be entitled to your monthly down payment credits as well. You have the option of selling the property without being on title to regain your down payment and monthly down payment credits.
What if I want to pay down a lump sum, can I do that?
There are no penalties or additional fees if you want to make a balloon or lump sum payment at any time during the Rent To Own Agreement. You may do so and it will go directly to your equity (purchase price).
Are your contracts legal?
Yes. For buying through Rent To Own, we use a standard real estate contract of purchase and sale similar to what you would normally use when buying directly with a Realtor. The main difference is that the completion date is usually 12 or 36 months later rather than 30 or 60 days when buying directly through a Realtor or Private Sale by an owner.
Can I take ownership of the property before the end of my Rent To Own term?
Yes! If you are ready to qualify for a mortgage during the term of your Rent To Own contract, you can exercise the option to purchase and take title to the property. In some cases, some of our clients have paid full in cash due to an unexpected inheritance or other goodwill ie. bonus from work, investment, lottery winnings ect.
