Rent to Own Your York Region Dream Home
Have you been looking forward to owning your own home, but all you’ve been hearing from the banks is that you don’t have the right credit score or you haven’t made your salary long enough? Rent to own programs in the York region are designed to help customers who have found the home of their dreams but don’t quite have the metrics that the banks are looking for.
HOS Financial has assisted many clients in the York region with finding the right rent to own agreement for their needs.
How Rent to Own Works York region
When you’re talking about buying a house, most people think about taking out a mortgage and paying the bank back over time. There are some people who can afford house payments but don’t have the credit or the income history to qualify for a loan, so a rent to own arrangement gets them on the path to home ownership before they have to get loan approval.
Still wondering what “rent to own” means?
Renting a house to own works a lot like signing a lease on an apartment or a home. You put down a deposit, you move in, and you start paying rent. In a rent to own program , some of that rent goes into a savings account for you. Over the course of the lease, each monthly payment adds to that fund. When the lease comes to an end, you have a down payment saved up to match bank requirements.
So what do you have to do to set up a rent to own agreement in the York region?
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 are a must before you can get the keys.
Even so, this is just part of the whole process. If you are dealing with an ethical rent to own program in the York 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.
Rent to own and Lease to own
You might see both of these terms used when you are looking for a rent to own home in the Peel Region. However, these are basically interchangeable. In either case, you are using the time between moving in and the end of the lease term to save a down payment and repair your credit so, when the lease comes to an end, you will be able to go to a bank or other lender and be able to gain approval for a loan.
Why do I have to sign a Option to Purchase agreement?
This is actually the most exciting part of rent to own programs in the York region. You have a signed agreement giving you the chance to buy a house – perhaps for the first time in your life. You still have a long way to go as far as building your credit and saving a down payment, but you are at least on the path.
Let HOS Financial help you find the right home and the right rent to own agreement. We have helped many clients in the York region start down the path of rent to own so that they can end the lease cycle. We look forward to hearing from you – and help you start that same journey yourself!