The Pro’s and Con’s of Rent-to-Own
As the Canadian real estate market changes, housing prices have increased substantially. New mortgage rules are being implemented and the increase of poor credit among young adults and lack of down payment is becoming increasingly difficult for them to become first time home buyers. You may have the income but not the best credit or great income but no down payment saved. As the real estate market changes, for good or bad, renting to own can provide a win-win situation for tenants who aren’t ready to be homeowners, just yet but also don’t want to have their rent not benefit them in the long run.
Here is how it generally works
You will receive a pre-approval from our in house mortgage financing team
You will meet one of our realtors who will help you find a home you love
Once a home is found, one of our investors will purchase it for you and act as your landlord
Here are some advantages of renting to own:
- You don’t current have the funds needed for a down payment but will at the end of your rent to own lease agreement because of the additional payments you will be making.
- You don’t have good credit; but you can live in your own home with receiving credit repair check-ups from our in house financing team
- If the market price of the house in the future is higher than the agreed upon future set price, you still get to purchase it for the agreed upon set price.
Here are some disadvantages of renting to own:
- If you do not go ahead with the purchase, then you forfeit the extra credits you have.
Rent to own is a great option for both landlords and tenants as it provides flexibility, stability and a guaranteed benefit to both parties. Contact us for more details.