Not qualified for credit or don't have a down payment ready?
Banks can not and will not TRY to understand your situation because this is what they do - they only look at the numbers. Regardless of the years of banking history and being a good customer, banks only see “numbers”. Being a mortgage broker for many years, I have seen multiple disappointed customers frustrated with their bank when trying to get a mortgage due to strict mortgage rules. But NOW, here is what I can do for you – Rent To Own - a unique process that I can help you start. It is a powerful kick start to put you on the path to home ownership - today. I will assist you step by step until you reach your goal.
How much money do I need to have?
Canadian banks require borrower(s) to have a minimum of a 5% down payment ready to purchase a property. But all Seller wants is to make sure by the time this Rent To Own term is up (either one or two years), the Buyer (you) will have enough of a down payment to meet the bank’s requirement. What we do is set up an installment plan for the Buyer which involves an Initial Option Fee & Monthly Option Fee. What this means is that the combination of an Initial Option Fee and Monthly Option Fee becomes the Buyer’s 5% down payment. Think of it like an initial deposit and a monthly deposit, respectively. It's much less complicated than it sounds:
Ex: When a house's purchase price is $100,000, a bank requires 5% ($5000) down payment right away. But with a two-year Rent To Own deal, we can set up a contract like this:
- Initial Option Fee: $2,600
- Monthly Option Fee ($100) * 24 months = $2,400
- Initial Option Fee + (24) * Monthly Option Fee = $5,000 (which is the Buyer's 5% down payment)
*Please note: this is separate from any monthly rent to be paid to the Seller*
In 1 or 2 years term
- provide an Initial Option Fee upon signing the Option Agreement. This fee is secured for your future down payment and is toward the principle of your house.
- monthly rental expenses (rent, condo fee, property tax, utilities) within the term.
- based on amount of Initial Option Fee, might need addition monthly savings(Monthly Option Fee) to meet bank's minimum down payment requirement when term reached.
After term finish
- Complete the purchase at the agreed price or,
- not to exercise option to purchase the house within the agreed-upon time frame, but will forfeits the option money.
How does it work?
This Rent-To-Own process involves three parties – a tenant (Buyer), a licensed realtor/mortgage broker (Me) & a landlord (Seller). A tenant enters into a standard lease or rental agreement with the landlord, with the added option of allowing the tenant to purchase the rental property in the future. In this agreement, the tenant's Monthly Option Fees also act as payments towards the principle of the house. Depending on factors such as the price of the house, or qualifications, the Initial Option Fee is also outlined in the agreement and can range from a few thousand to over ten thousand dollars.
At the end of the term, I will assist in closing the deal between the two parties and transfer ownership.
Complete online eligibility form ...
Complete this online eligibility form and provide accurate and detail information. Peter will get back to you within 2 business days.