If you are looking to join the world of home ownership, rent to own in the Halton Region is a terrific path from living from lease to lease to building up home equity. Going through the rent to own process can be a win-win for everyone involved.
HOS Financial helps clients in Halton Region who are not Bank ready to purchase their dream home “today” using our Industry leading Rent to Own program. Our Rent to own program is designed to help Halton Region clients become future Homeowners by entering into a Rent to Own.
Our Rent to own agreement allows you to pick out your Dream home with your Own Realtor, use Rent to Own to move into today and buy the house at the end of the Rent to Own Agreement by becoming Bank Ready during their Rent to Own Term. A Rent to own program will allow you the time you may need for Credit Repair and saving the Down payment required for a Mortgage at the end of the Rent to Own Program.
The majority of Canadians build a financial future and a sense of personal security by purchasing a home and paying for it over time, taking over the clear title and the end of their mortgage.
However, not everyone has the means or the credit to qualify for a Traditional Mortgage and end up paying rent. Because the financial obstacles for purchasing a home in today’s market can be so significant, some people never get past the leasing cycle.
What does “rent to own” mean?
If you purchase a house using a rent-to-own agreement, you make monthly rent to own payments. However, a portion of your rent to own payment goes into a Down payment of Savings fund which will eventually represent some or all of the down payment you use to complete the purchase at the end of the Rent to own term.
When you want to buy a home in Halton Region using Rent to Own, the Rent to Own Program will help you to accumulate the down payment required for your Mortgage financing at the end of the Rent to Own Term.
So, even if the lenders in your community are not approving your Mortgage whether it’s your poor credit rating, your income history or your lack of a down payment at the present time, you can still start down the path toward home ownership.
When you enter a rent to own program, there are two different agreements that have to be registered between you and your landlord. The first is the “option to purchase,” and the other is the “lease agreement.”
If you sign up to purchase a home through a rent to own program, these two documents will need to be reviewed and agreed to with your Lawyer.
Even so, this is just part of the whole process. If you are dealing with an ethical rent to own program in the Halton Region, the representative will tell you to get legal counsel from an independent solicitor, who will review the two agreements and ensure that your interests and rights are not endangered by the arrangement.
It is important to ensure you received Independent Legal Advice before entering any Rent to Own Program.
Is there a difference between rent to own and lease to own?
Actually, these programs are very close, if not the same. Most rent to own programs have lease terms between three and five years, although there can be some variation based on the needs of the buyer.
The purpose of having a longer rent to own term is to allow you time to repair Credit, secure longer job tenure and allow you to save a higher down payment. That way, once the rent to own term comes to an end, you’ll be able to qualify for a Mortgage through a traditional lender with Credit Repair and a higher accumulated Down Payment from your Rent to Own Option Credits.
The Rent to own agreement indicates the time when you’re rent to own agreement comes to an end and when you have the right to exercise the option to purchase your dream home. The Rent to Own Contract also has such details as which party pays utilities, when the rent is due each month and how you should pay the rent.
What about the Option to Purchase agreement with a Rent to Own Program?
The most important part of the paperwork is the agreement giving you the option to purchase the property at the end of the Lease Term. The biggest reason why people sign up for Rent to Own program is that it gives them the right to buy a house either at the end of the Rent to Own agreement or while the Rent to Own agreement is still in effect.
So, when you ink your name on a rent to own agreement in the Halton Region, you are agreeing both to the Rent to Own Agreement and to the Option to Purchase. This Rent to own agreement details the special terms of the option you have put together.
Wrapping things up
If you don’t have the credit, the income history or the down payment to qualify for a mortgage, taking advantage of rent to own in the Halton Region is an excellent path to home ownership. The idea of rent to own might be simple, but it also helps to understand how the agreement work for the program.