What is Rent to Own (RTO)?
Rent to Own is a program that lets you move into a home now and buy it later. You pick the home, we buy it, and you rent it from us for 2 to 4 years at a purchase price agreed before you move in. Part of each monthly payment builds your equity while you pay down debt and improve your credit. At the end of the term you qualify for your own mortgage, and the home is yours.
Who is Rent to Own for?
People who can't qualify for a traditional mortgage yet and need more time to build equity, pay down debt, and improve their credit. The program gives them a set path to owning the home.
What are the risks with RTO?
Home prices can fall after you move in, as with any purchase. Owning a home also costs more than renting. We keep those costs down by only buying homes that don't need major repairs.
How much income do I need?
Your household needs at least $100,000 a year before taxes. Income from a spouse or partner on the agreement counts toward it. If you're self-employed, we look at your net business income plus any other household income.
Can I apply with debt or bad credit?
Yes, the 2 to 4 year term gives you time to pay down debt and rebuild your credit while our credit team tells you exactly what to work on.
Can I apply after a consumer proposal or bankruptcy?
Yes, if you've had one. One consumer proposal or one bankruptcy doesn't rule you out, and we'll build your credit rebuild around it. If you've had two or more in total (two proposals, two bankruptcies, or one of each), we can't accept your application, because lenders won't approve the mortgage you need at the end.
How much do I need for a down payment?
A minimum of 5% of the purchase price to start, sometimes more depending on your credit history. Over the term your monthly payments build that up to at least 10%, which is what a lender will want to see.
How is the purchase price set?
We agree on it before you move in. It's based on today's price plus about 3.5% a year, depending on the market. If the home appraises higher when you buy, that gain is yours.
What do I sign?
An option to purchase, which sets the price and the savings toward your down payment, and a standard residential lease.
Where do you operate?
Across Canada. Most of our families are in Ontario, including Hamilton, Belleville, St. Catharines, London, Sarnia, Niagara Falls and Woodstock, and we also help families in Moncton, New Brunswick. Tell us where you want to live and we'll confirm.
I'm self-employed. Can I still qualify?
Yes. We'll ask a few different questions, and we can advise you on how to show your business and personal income so a lender approves your mortgage at the end.
