Frequently Ask Questions

Does Rent To Own cost more than a regular rental?

Yes, but only slightly. We structure our rent to own agreements to position our tenant-buyers for success. In order to do so we keep monthly costs lower than most of our competitors.

Why is Rent to own more than a normal rental?

With a rent to own agreement you pay monthly rent and option payments. Option payments are a forced savings that you put into the property, so you have a larger down payment and can easily qualify for your mortgage at the end of the rent to own.

Why do I need an initial deposit?

An initial deposit is required to enter into a rent to own agreement. This is in place for two reasons, the first being that it helps to keep your monthly costs lower. The second it shows us that you are committed to the rent to own and will take care of the property from day one.

How much do I need for the Initial Deposit?

In most cases you need a minimum of 5% of the final purchase price for your initial deposit. Ex. if this final purchase price was $250,000 the minimum initial deposit would be $12,500.

How do you calculate the final purchase price?

We simply appreciate the house each year at a low percent of the current value. Depending on the location, these appreciation rates can change, but in general we keep them low to make mortgage qualifying easier for our tenant-buyers.

Are rent payments and option payments different?

Yes. Rent payments are separate from your option payments. Option payments are a forced savings that will become your down payment for when you buy the house at the end of the rent to own.

Is Rent to own different from a mortgage?

Yes it is different. What is similar to a mortgage is that you have to qualify with Rent To Own Canada. The difference is that we have less strict criteria to qualify. Rent To Own Canada exists to get our tenant-buyers mortgage ready by the end of the Rent To Own agreement.

What happens if I don’t get a mortgage at the end of the rent to own term?

We create rent to own terms and conditions specific to you, to make your chances of getting a mortgage very high. In some cases unpredictable life events happen and make mortgage qualification difficult. In these cases we will extend the rent to own to help our tenant-buyers get back into a position to be mortgage ready.

I’m a first time homebuyer. Can I use the First Time homebuyer incentive?

The first time homebuyer plan is designed to be used when you get your first mortgage. With Rent To Own Canada you obtain the mortgage at the end of the Rent To Own agreement term, which means you can utilize this incentive then. The first time homebuyer incentive is not to be used at the start of the Rent To Own term.