RENT TO OWN HAMILTON
Rent to Own in Hamilton How Does It Work?
Buying a home in a Rent to Own program means that a part of your monthly rent is credited towards a future down payment on the home you live in. Based on this simple concept, people with poor credit ratings or simply without the cash to make a down payment can own their homes. Through Rent to Own, Hamilton would-be homeowners can accumulate the necessary down payment and improve their credit while living in the houses they want.
Rent to Own allows you to overcome the hurdles of poor credit or insufficient cash on hand, and buy the home of your dreams.
History / Statistics:
With a booming steel industry and the third largest population of immigrants in Canada, Hamilton is a very popular place to live. (Its population of just under 520,000 makes it the 10th largest municipality in Canada.)
Even better, Hamilton has been ranked as the fifth best place to invest in real estate in Ontario, and housing prices have been slowly but steadily moving up. The city is the centre of Ontario’s manufacturing “golden horseshoe,” and all estimates suggest the city will only increase in attractiveness in the years to come.
At the same time, economic prosperity and rising housing prices mean that not everyone is able to purchase the home they want. The sub-prime mortgage crisis left lenders reluctant to make loans to those with sub-par credit ratings, while the lenders which once made such loans are in many cases no longer doing business in Canada. This leaves many would-be homeowners in a difficult position.
- Would you like to buy a home in Hamilton but your credit is standing in the way?
- Have you been refused bank financing to buy a home in Hamilton?
- Have you thought about Rent to Own?
Rent to Own Agreements in Hamilton
Rent to own programs require two separate agreements between the buyer / tenant and the landlord — the “lease agreement” and the Rent to Own “option to purchase.” An ethical Rent to Own company will require you to look over both contracts with your attorney before you sign. Once you sign the agreements, you get the keys to your home and can start living there.
Rent To Own Lease Agreement
Rent to Own programs always have a pre-determined lease term, which is the length of time you’ll lease the home from the landlord or Rent to Own company. Normally, this period is 3-5 years, though it can vary based on your individual needs and financial condition.
Mostly, this lease period lasts 3 years. This way, the Rent to Own company has plenty of time to help you repair any credit issues you may have, and you as the homeowner-to-be can accumulate enough of a down payment to secure regular bank financing when the lease term ends.
A Rent to Own Hamilton lease agreement covers details like the amount of rent required each month as well as the date your lease period ends. It also specifies when you’ll be legally entitled to purchase the home.
Lastly, like any lease agreement, the Rent to Own lease will cover questions such as when rent is due, whether you or the landlord will pay the utility bill, and how to make payment.
The Rent to Own Option-to-Purchase agreement
The key element which differentiates a Rent to Own program from ordinary rental is the ability you have to purchase the home during the lease period or at the end of the lease term. This is why, with Rent to Own in Hamilton, you must also sign the agreement which gives you an “option to purchase.”
This agreement is the legal document which gives you the ability to buy the home at the end of the term. It legally obligates the landlord to sell you the house, if you decide to exercise this option within a given time period.
Generally, Option to Purchase agreements also specify the agreed-upon purchase price, the time period when the option to purchase exists, how much of your monthly rent will go towards the down payment, and what the down payment will be.
Rent To Own Homes Clarington – Your Key To Owning A Home, Finally
Are banks and traditional lenders saying no? Can’t afford a down payment? Do you have bad credit? Are you self employed or new to Canada? Did you suffer a recent bankruptcy?
Affordable down payment: With only as low as $10,000 or 3% of the purchase price* you can begin the process of owning your home. 20% of the rent you pay will be added to the Starting Down Payment to form your final Mortgage Down Payment. The Rent to Own Homes Clarington program is recognized by CMHC.
Better credit: Boost your chances of qualifying for a lower mortgage rate from a traditional lender in 2-3 years while living in your new home.
Establish equity: You can build your equity faster with your starting down payment and monthly option credits as compared to the first few years of a traditional mortgage.
Secure your house price: Lock in your future purchase price today and beat the increasing house prices. The price you settle at the end of the program is determined right at the start of the contract so you know how much you are going to pay, regardless of aggressive house market inflation rates.
Get fixed payments: Just as the house purchase price has been set, your monthly payments are also predetermined and does not increase anytime during the program.
Credit coaching: We work with you. We answer your questions and support your journey to a better credit rating through the program.
Keep your options open: Find the ideal housing solution that works for you, whether it’s a longer term, an early purchase option, or ways to lower your monthly payments.
More choices: Be in control; look for and buy the house you want and not just one from the home listings the competitors give you.
Variable programs: Credit is not a critical factor for approval, we look at the bigger picture of your home ownership.
Improved security: We protect your interests with legally-binding agreements that you can have checked and evaluated by a lawyer.
Move in right away: No advance rental payments AND no need to make a down payment until you have decided to buy the house.
Enjoy your homeowner perks: paint walls, update the HVAC system, renovate bathrooms – the house is yours and all upgrades belong to you upon purchase.
Same lifestyle: Don’t be house-poor; get the education and assistance to create a lifestyle-conscious budget.
Real Estate Stats: Clarington
Interesting real estate stats for the Clarington area:
…average changes in housing prices (monthly, quarterly, yearly) in the Clarington area has been on a downward trend (Source: Zolo), which can indicate that housing costs are getting more affordable.
…the Durham region is one of this year’s top real estate neighborhoods (Source: Money Sense), and Carlington may just be the right neighborhood for you based on price and location.
Do you qualify?
There are only two minimum requirements to get started on the process of renting – and finally, owning – your own home.
- An amount of $10,000 or greater depending upon the price of the property, which will be taken as to be part of your down payment when you are ready to buy.
- A monthly rent of no less than $1,800.
What if you don’t qualify?
The Rent to Own Homes Clarington program is NOT credit driven and our clients generally fall into at least one of the categories below:
Self-employed and can’t show income
Poor or no credit score
Power of sale (foreclosure)
Property tax or income tax outstanding, tax liens
Collections, judgments or writs on bureau
Orphaned mortgage, current lenders not renewing
Need to go into a consumer proposal, bankruptcy or not fully discharged
Mortgage higher than the current market value due to market correction
Rent to Own Process
Here is a summary of events which occur during the Rent to Own Homes Clarington program:
You can work with your realtor or you can opt to work with one of our associate Realtors to find and view houses for rent in Clarington that you want to own in the future. We do not have an inventory of houses for sale/rent. You get to choose the property you want to sign up in the program.
Once your Funding Partner has been decided on, we will draft the Contracts with the financing details of your Lease Purchase Program.
Our Underwriting department evaluates your application to ensure you have the financial capacity to pay the Monthly Lease to Own Payment. We will also make a plan to get you into Home Ownership in the future and work with you to address issues that result in bank disapproval today. Once we are positive that you can successfully complete the program, we will send you a Rent To Own program offer for your consideration.
You must take the rent-to-own program contracts to your lawyer to get Independent Legal Advice (ILA). This is a compulsory element with our program.
Once your lawyer has examined and agreed with the contract stipulations, you can then sign (or not) and return the documents.
If you agree to the terms of the Rent To Own Program, please send back a signed copy of your acceptance along with pertinent documents for our evaluation.
The Real Estate contracts are then signed between the Seller of the Property and your Funding Partner. But remember, your Funding Partner will actually purchase the house on your behalf and you sign the contracts to become the future Homeowner using our Rent To Own Program.
We close and you move in. We start working on the “Exit Strategy” to be put in place before you are approved for the Rent to Own Homes Clarington program.