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REAL ESTATE SERVICES

What is Rent to Own?

Rent to Own or Lease to Own is a program that allows you to rent a home that you will be able to purchase in the future.

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This program is perfect for you if you:

  • have credit issues

  • don't have enough money saved for a down payment

  • are a newcomer to Canada

YOUR NEW

HOME AWAITS.

Contact us to receive more details about our rental properties and the rent to own program

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HOW DOES RENT TO OWN WORK?

With Rent to Own you work with one of our agents to help you find your dream home. You can choose from thousands of eligible homes available for sale.

  • We negotiate the price with the seller and determine a future price of the home.

  • You put a small down payment towards the purchase of the property. Some properties qualify for just $5,000 down payment!

  • We sign a lease agreement with an option to purchase the house in 3 to 5 years

  • The monthly payments have two components: monthly rent and option credit

  • The initial down payment and the option credit accumulated over the leasing period are credited towards the purchase of the house.

  • On the date agreed, you apply and qualify for a mortgage and exercise your option to purchase your home. Remember! the price was previously agreed, so there are no surprises at this point!

  • The title is transferred to you

WHAT ARE THE BENEFITS OF RENT TO OWN?

  • Lease to own allows you to move out of a temporary rental property into a home that will be your own at the end of the contract

  • You don't need to worry about saving money for a down payment. Part of your monthly payments will be credited back to you at the end of the contract. The structure of the payments will ensure that you will have at least 5% of the purchase price credited towards the purchase of the home.

  • You will receive instructions on how to improve your credit history. Good credit and down payment are essential to qualify for a mortgage before you can exercise your option to purchase.

  • You don't need a large down payment to get into your dream home right away. Some properties qualify for as low as $5,000 for down payment!

  • The future option price is locked in. You will benefit if the property has a stronger appreciation during the duration of the contract.

  • All the work you do in your home will not be wasted when the lease is over. You live in your home of the future, now!

EXAMPLE - 5 YEAR CASE STUDY

Every house and every situation is different, but we can use a typical 3 bedroom - 2 bathroom home with a basement and double garage in Edmonton

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  1. The current market price of the property is $300,000​

  2. Based on the particulars of the property, we agree that the house will have a 3% appreciation per year and at the end ​​of the 5-year period, the future price of the property will be $348,000

  3. Based on your application and the condition of the property, we determine that it is eligible for a $5,000 down payment

  4. The monthly rent for this house is $1,600 and the option credit is $250, so your monthly payment is $1,850. The additional $250 will be credited towards the purchase of the house

  5. At the end of the 5 year term you have accumulated $20,000. Your initial $5,000 plus $15,000 from your monthly payments of $250

  6. At the end of the term you will work with one of our mortgage brokers to qualify for a mortgage with only 5% down payment at a low rate. The title is then transferred to you.

  7. Your monthly cost of ownership at this point will be approximately $1,800. This includes mortgage payments, property taxes and insurance

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