How Do Rent To Own Work Featuring Our
Canadian Rent To Own Homes Program
is a Rent-To-Own Homes Program?
A Rent-To-Own Homes Program or lease option as it is sometimes known,
an ingenious program to help people who are currently not qualified for
conventional mortgage financing to move into their chosen starter homes
during a lease period. At the end of the lease period when the
tenant/buyer is finally qualified for a conventional mortgage, there is
an option to purchase the home at a predetermined price.
Think of such a program as a rental lease with option to buy
homes. An initial deposit plus a
portion of each monthly lease payment (about 20%) will be credited back
towards the final purchase price of the home.
Who is the
Rent-To-Own Homes Program for?
This program is generally for those who have less than perfect credit
in the eyes of most creditors and financial institutions. Past
habits of late or missed loan and credit card payments might have
resulted in low credit scores which disqualify prospective homeowners
for conventional mortgages.
Can't Qualify For Bank Mortgages
Some people such as new immigrants may have no credit history and it
will take some time to establish credit in Canada. Others might
have good credit histories but currently do not have enough funds for
down payments required for mortgages.
People who have gone through bankruptcies, major health issues,
divorces, ID thefts and many self employed individuals who were not
able to meet monthly expenses could also end up having bruised
credit. Such bad credit histories again prevent these people from
obtaining mortgage financing.
Even current homeowners who are at risk of losing their homes through
foreclosures because they are not able to keep up with current mortgage
payments, can benefit from a Rent-To-Own Homes Program.
Our Rent-To-Own Homes Program is designed to help all of these people
a successful transition from renters to homeowners while repairing or
establishing their credit histories as well as saving up for a down
Rent-To-Own work in Canada?
There is an approval process including a pre-qualification followed by
a final approval step that involves verification of certain supporting
documentation we require. Fully approved tenant/buyers will then
be invited to start our Rent-To-Own Homes Program in which we set you
with a realtor in your chosen location to find your dream starter home.
Realtor Helps You Find Dream Home
With consultation with a mortgage broker, we determine the price range
of a home, the initial deposit and monthly lease payments you can
afford. The fun then starts as you go find the home you want to
live in with the help of the realtor. Once you locate the home,
we (or one of our associate investors) purchase the property on your
behalf and determine the final option purchase price at the end of the
When you move into your dream starter home, you live in it as a tenant
paying monthly lease payments but maintain it as if it was your own
property. So you can renovate and repair it as you desire.
After all, this will likely be the home that you will buy and own at
the end of the Rent-To-Own Homes Program.
Maintain As If Your Home After Move In
During the lease period, we will work with you with the help of the
mortgage broker and sometimes a credit repair specialist to rebuild
your credit. With a committed credit repair program including
consistent savings as well as expenses control, you will finally be in
a great position to qualify for conventional mortgage financing for
your home by the end of the lease period.
So in essence, you pick your home. We buy it in the meantime and
you rent from us. At the end of the lease period, you buy it from
us at a set price when you finally become a homeowner!
What type of
properties are eligible for this program?
All types of resale homes are eligible from detached single family
houses, semi-detached units to both condo townhouses and high-rise
condos. Brand new homes however, are usually not within
affordable starter price ranges especially with taxes added in.
How long is
the lease with option to buy homes?
We will determine the actual duration of the Rent-To-Own Homes Program
in consultation with the mortgage broker. We will estimate how
long it will take to repair your credit and be qualified for
It is our goal to help you finally become
a homeowner so we want you to be able to exercise the purchase option
at the end of the lease period. Normally, the lease period is two
or three years but in some cases, it
can be as short as one year or as long as four years.
How much is
the initial deposit?
The initial deposit is usually about 5% of the current price range of a
home located in major centres. In the case of more rural areas,
we would require up to 10% (we may not pre-qualify for all rural
areas). But this is still much lower than the typical
conventional mortgage financing requirement of 20% to 25% down payments
For example, you would need $5,000 as a 5% initial deposit for a
$100,000 home, $7,500 for a $150,000 home, $10,000 for a $200,000 home,
$12,500 for a $250,000 home, $15,000 for a $300,000 home, etc.
Note that this initial deposit will be FULLY credited towards the final
purchase price of the home at the end of the lease period.
If you do not have funds for a 5% initial deposit, you would NOT
pre-qualify for a lease with option to buy homes at this time. We
suggest that you begin a regular savings program to save up enough for
an initial deposit at which time you could apply to our
costs are involved in Rent-To-Own?
Once you are fully approved for our Rent-To-Own Homes Program, we will
require a small portion ($500) of the initial deposit up front before
we can begin the process of setting you up with a realtor to find your
dream starter home. For example, if the total initial deposit is
$5,000, then the balance would be minus the $500, which would be $4,500.
You can consider the $500 as an application fee or program activation
fee even though it is
part of the initial deposit, which will eventually be fully credited
towards the final purchase price of the home at the end of the lease
Your payment of this $500 shows that you are serious in starting this
Rent-To-Own Homes Program. We will refund this $500 in full to
if for any reason, you should wish not to begin the Rent-To-Own Homes
Program within 48 hours of payment but before you begin looking at
properties with a realtor. After the 48 hours, this $500 will be
In cases where you are applying to rent to own an existing property
(one we happen to currently offer or your own property), there will be
no $500 fee required since a property search is not required.
When is the
final option purchase price of the home determined?
specify the final option purchase price of your dream starter
home at the beginning of the lease period. This will be stated
clearly on contract and will not be negotiable. You will also
know how much the monthly lease payments will be as well as the amount
of option credits towards the final purchase price of your home.
This way, you know ahead of time approximately how much your home will
cost at the end of the program. This will in turn help you plan
for your future application for eventual conventional mortgage
How are the
monthly lease payments determined?
The monthly lease payments actually involve two components. On
paper, the monthly lease will appear to be a bit higher than market
rental rates but this is because there is a rental component PLUS an
option credit component. About 20% of your total monthly lease
payment is the option credit portion, which will be credited towards
the final purchase price of the home at the end of the lease period.
Think of this 20% portion as a forced savings program that will help
you successfully buy the your home from us at the end of the program.
if I am late on a lease payment or if I fail to make
In the event of late lease payments, the 20% option credit for that
particular month (and that month only) will NOT be credited towards the
final purchase price. You will lose that month's option credit.
If you fail to make payments, we will
unfortunately be in much like a typical rental situation where a
possible eviction process will begin. So it is your
responsibility and everyone’s interest to make your monthly lease
payments on time. We want you to be successful with this
Rent-To-Own Homes Program.
What if I
need more time before I can exercise the purchase option at
the end of the lease period?
If you need more time (to build better credit or save up for a down
payment) before you can exercise the purchase option, there is a
possibility that we can extend the Rent-To-Own Homes Program by another
year for you. Again, we want you to be successful and we will do
what we can to help you transition from a renter to a homeowner.
What if I
choose not to exercise the purchase option or vacate the home
before the lease period ends?
It is your right to choose not to buy the home at the end of the lease
period. That’s why it’s called a purchase option. However,
the initial deposit that you originally paid as well as the monthly
option credits built up during the lease period will NOT be refunded
back to you.
If you vacate the property before the program ends, you will also lose
the initial deposit and any monthly option credits built up. This
Rent-To-Own Homes Program is designed for those committed to buying
their homes at the end of the lease period.
We let you choose your home to live in rather than trying to get you
into a property we already own. This way, we hope to maximize the
chances that you and your family will want to buy the home at the end
of the lease period.
But of course we realize that things can change. However, we must
retain the initial deposit and monthly option credits to help recoup
our own costs of the program. This is the same as in situations
where mortgages or car loans are in default. The lender retains
any deposits made.
possible to purchase the home early before the lease period ends?
Yes, if you become in a financial position to purchase the home before
program ends, we can negotiate an early settlement.
Who pays for
maintenance and repairs during the lease period?
Unlike a typical rental situation, you as the tenant/buyer pay for all
maintenance and repairs during the lease period. This is because
in a lease with option to buy homes program, you live in the property
that you will
eventually purchase. You will be living in the future home that
you will own. So you maintain and repair it as you see fit much
like homeowners do with their properties. You will also be
responsible for all utilities for your home.
You can also renovate and landscape the property as you wish.
Many previous tenant/buyers in Rent-To-Own Homes Programs have made
renovations at their own expense during lease periods. After all,
your future home, the one that you chose for your family.
Renovate As You Wish
To ensure that your home is in good condition before you move in,
there will be a home inspection to uncover any major issues.
We can negotiate with the seller as needed if there are any
deficiencies or even choose another property to acquire for you.
Home Inspection Ensures
Good Condition Of Home
Please note that the cost of the home inspection will be your
responsibility since you want to be sure of any defects of your future
home. We will ask that you be present during the actual home
inspection as well.
Can we have
pets in the home during the lease period?
Of course, this is your future home which can include pets. The
only exception would be condo high-rise units that do not allow certain
pets as per the condo rules for certain buildings.
Who pays for
property taxes and insurance?
Since we are the title owners of the property during the program, we
will pay all property taxes and property insurance. However, we
highly recommend that you obtain home contents insurance as a tenant
for the duration of the lease period.
How can your
Rent-To-Own Homes Program help me if I’m already a
homeowner who is presently at risk of losing my home (in
It might be possible for us to purchase your home and then have you
rent from us during a lease period. Then assuming that your
financial position and credit are significantly improved by the end of
the lease period, you can buy your home back from us at a predetermined
purchase price just like in other Rent-To-Own Homes Programs.
In some cases where it is determined that you can no longer afford
stay in your present home, we may require you to sell it on the market
and choose a downsized home as part of the lease with
option to buy homes program. At least this way, you will be
saving your credit rather
than going through a possible foreclosure.
How can you
help me repair or establish my credit during the
Rent-To-Own Homes Program?
We will have you work with a mortgage broker and a credit repair
specialist if required during the program to build steps toward an
eventual successful qualification for conventional mortgage financing
at the end of the lease period. We will also check up on
you from time to time to ensure that you are on track.
Work With Mortgage Broker & Credit
Now that I
understand how Rent-To-Own work, how do I apply and get approved?
There is an online application at this website for
pre-qualification. Once you submit it, we will determine whether
you are pre-qualified or not. If you are pre-qualified, we will
then ask that you send in certain supporting documentation that we can
We need these in order to fully approve you.
Failure to provide adequate supporting documentation in a timely manner
will indicate to us that you may not be 100% fully committed to our
program and will result in non-approval.
Keep in mind that an approval is NOT based on your credit. After
all, we are here to help you because your credit history is less than
stellar. We will look at your application on the whole to
determine if you will be approved or not.
If you become fully approved, we will contact you for a meeting to
further discuss your case and proceed to have some contracts
signed. You may have your lawyer review the contracts prior to
signing if you wish.
Face To Face Meeting
If you do not meet our criteria for either the pre-qualification or
final approval steps, we will let you know where you fell short so that
you can work on improving those areas. You are more than welcome
to re-apply again in the future once those issues are sorted out.
Since the acquisition of your dream starter home is dependent on us (or
one of our associate investors) buying the property on your behalf at
the beginning of the program, there might be a chance that we are
unable to accommodate you if we are already at full capacity with this
program with other tenant/buyers or if we currently do not have
available investors funding the acquisition at the time of your
So for various reasons, we might not be able to successfully acquire
a property for you. We will let you know if this is the case and
any deposits or fees you made will be fully refunded back to you.
Although we will consider applications from all across Canada, our main
areas of focus are larger centres in southern Ontario. We do not
administer programs outside of Canada.
If I am
interested in this Rent-To-Own Homes Program, what should my next step
To apply for our Rent-To-Own Homes Program, see our Apply To Pre-Qualify Now section.
If you haven’t already, we invite you to view our video on our home page, which also
explains how our lease with option to buy homes or Rent-To-Own work.