Frequently Asked Questions
Frequently Asked Questions
How long is the rent-to-own program?
The rent-to-own program usually lasts from 2 to 4 years, but the length of the program depends on each person’s situation and the time they will need to qualify for a mortgage at the end of the program.
How soon can I move into the home?
The process to move into a home takes about 6 weeks to 4 months, from start to finish.
Is there a fee to get the application started?
The application is free. Once we approve your application into the program, we will ask you for a commitment fee. This fee is used to pay for the mortgage broker to assess your qualifications.
If I have poor credit, can I still qualify for the program?
Yes! We work with people who have less than perfect credit. Our mortgage broker will do an assessment to determine if you are able to qualify for a mortgage. We will develop an action plan to work with you to build and repair your credit.
Can I qualify for your program if I have a current or past consumer proposal?
Yes, we work with people who have filed a consumer proposal. Our team will work with you to repair your credit and give you the knowledge to keep a good credit report. We will get an understanding of your situation to determine where you are at with your proposal, what your plans are to pay off the proposal, and if there is an opportunity to work with you in the rent-to-own program.
Can the purchase price of the home be negotiated?
One of the benefits of the rent-to-own program is that the purchase price of the house is set in advance before you start the program. The purchase price is based on a conservative estimate of the future value of the home. This price is guaranteed for the duration of the program and will not change, even if the home value appreciates over the course of the program.
Can I choose any home I want?
Yes, you can choose the home you want, however, there are some criteria that we will go over with you.
What do I need for the initial deposit?
There is an initial deposit called the Initial Option Consideration. We recommend having a minimum amount of $10,000 or 3% of the home purchase price, whichever is greater. We collect half of this amount as soon as you start looking at houses so we can provide the deposit on the property when you find the house you like. We collect the remaining portion of the initial deposit before removing conditions to purchase the house.
The initial deposit is credited back to you when you choose to purchase the property.
How much do I need to pay on a monthly basis?
You are responsible for making your monthly payments on time. The monthly payment is made up of two parts:
1) the Monthly Rental Payment, which is fair market rent. You will pay the same rent payment each month during the rent-to-own program.
2) the Monthly Option Consideration. In addition to the monthly rent payment, there is a payment called the Monthly Option Consideration which will help you to accumulate the balance of the deposit for the purchase of the home at the end of the rent-to-own term.
The Monthly Option Consideration (like the Initial Option Consideration) is credited back to you when you choose to purchase the property. We will determine what your Monthly Option Consideration will be based on your individual situation.