Is Rent to Own (RTO) right for me?
If you are ready to purchase a home but cannot do so because of bad credit or insufficient funds or if you're tired of throwing away money on rent then RTO is the way to go.
Do I Need A Down Payment?
Yes, we require a small down payment on all our properties or programs. The small deposit starts at $6,000 and increases with the size and value of the home you choose.
What Is Rent to Own?
Our Rent to Own program is an arrangement that allows the prospective homeowner (Tenant) to lease a property with the option to purchase the property at a later date. The Tenant chooses the house that they would like to own. We ask for a 3-5% deposit (minimum $6,000) from the Tenant before we proceed. The lease is generally two years in length but may be negotiable. At the end of the lease the Tenant can exercise an option to purchase the property at a pre-determined price. When the Tenant exercises their option to purchase, we credit a portion of the monthly lease payment and the initial deposit towards the sale of the property.
What types of contracts will I sign?
When doing an RTO you will sign an Occupancy Agreement which provides the details of the lease (similar to a rental agreement), you will also sign a Option To Purchase Agreement that explains how the monthly credits and deposit will be credited towards the purchase of the home.
Why does RTO differ from renting?
Unlike renting, your deposit will go towards your down payment at the end of your lease term (when you purchase the property). In addition, a portion of your rent will be credited back to you at the time that you purchase the home, so long as it is within the contracted time frame. If you default and do not purchase the property at the end of your lease term, NO MONEY will be credited back to you, as stated in the RTO agreement.
Is it hard to get approved for financing at the end of the lease term?
We only choose to work with clients that are in a position to use our program and that we feel will succeed in purchasing a home. We provide ongoing credit coaching and mortgage preparation for the term of the contract. Typically our clients have been getting their financing approved with CMHC.
Where are your homes located?
Our homes are located throughout the Greater Toronto Area. If you are searching outside of that area we have partnered with local Rent To Own companies right across Canada!
Do I have to pay to use your services?
Once you have been approved to use our RTO system we receive a non-refundable $500 application fee.
Is The Purchase Price of The Home Negotiable?
The Option to Purchase price is fixed over the time period. No matter how much your home appreciates, the Option price remains the same.
Can I do any upgrades to the home before the end of the term?
Absolutely! The purchase price is already agreed upon therefore any completed upgrades to the home will benefit you as the client by increasing the home's value more than what you will ultimately purchase it for. We have clients that have built new decks, painted rooms, completed kitchen and bath renovations, built new gardens and many more renovations big and small.
Do you allow pets in your RTO properties?
Many properties do allow pets. However, the pet policy varies from property to property.
Who Pays the Taxes?
We, as the property owners, pay the yearly taxes.
Who Pays the Utilities and Maintenance?
You, as the tenant, will pay all the utilities and maintenance.
How do you select who qualifies for a "Lease To Own Lease"?
We look at individuals with Good, Bad and Ugly Credit. We will also perform some research into the applicants. This includes a credit check ,consultation with a mortgage broker(to ensure that you will qualify to purchase the property within 24-36 months),employment verification, current and previous residency verification, public record search and criminal background check.
How long does it take to complete the application process?
We like to keep things fast and simple so we offer a streamlined application process. Once ALL the appropriate paper work has been received we can have an approval within 48 hours.
Can you help me choose the home that's right for me and my situation?
Absolutely! We work with Realtors that specialize in "rent to own scenarios" to take you through the process step by step, answering all your questions and directing you to the RTO home that would best suit your situation.
How can I see the homes I'm interested in?
Each listing includes a street address so you can drive by and see the outside of the home and get a feel for the general neighbourhood. However, to get inside you will need to get in touch with us and make an appointment to view the property.
When can I move in?
After the application process is completed, the lease agreement/rent to own agreement is signed, and required payments are collected, you are free to move in to your new home.
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