Good News! HOS Financial is now able to offer Rent to Own Programs to clients with the greater of 3% or $10,000 as the Down Payment.
3% down is offered on an exception basis and is based on the overall profile of the Applicant.
In many markets in Canada, House prices continue to climb at record rates. In some areas, house are appreciating at a rate of as much as 20% per year. This means that a house valued at $ 300,000 today will be demanding $ 360,000in just a year. That sounds like bad news for most consumers who are looking to buy in the future…but it does not have to be bad news. Let us explain…
With our Industry Leading Rent to Own Program, you move in today and buy the home at a Pre-Determined Purchase price in the future. In most areas, we apply a moderate appreciation rate of 3-5% per annum.
How is that a benefit to you? Well…let us compare 2 scenarios.
Scenario #1 …. Renting until you have enough Down Payment to get a mortgage.
Let us use the same starting values as we used in the above example…$ 300,000.00.
If the property you desire is in an area where values are climbing, let us use 8% per annum, the Market will demand a Purchase Price of $ 377,913.00 in just 3 years. This means in 3 years, you will need a Down Payment of 5% or $ 18,895. Your Equity in the Home when you buy it 3 years from now is your down payment only.
Scenario # 2…Rent to Own on the same property as above.
You move into the home today with a Down payment of 3% of the today’s Purchase Price or $ 9000.00. During a 3 year Lease term you will save the remainder of the Down Payment you will require for a Mortgage with the “savings” component of your Lease Payments. In addition, as we CAPP the future purchase price using 2.5% as the appreciation rate, you will buy the home for $ 323,067.00 at the end of a 3 year Lease Term.
That is approximately $ 54,000 cheaper than buying it on the open market. Your Equity in the home after 3 years is the $ 54,000 you inherit because you bought the home for $ 54,000 less than the market was demanding plus your 5% Down payment of $ 16, 153.00.
Buy entering our program today, you can certainly see how our Rent to Own Program is an investment in your Financial Future.
If you would like to apply, please enter your email below to head over to the application form. When we receive your information, a Rent to Own specialist will be in touch as to your next steps.