FREQUENTLY ASKED QUESTIONS
What is our rent to own (homeowner in-training) program?
Our rent to own (homeowner in-training) program is a program where we buy you a home of your choice based on your financial qualification. You get into our program for 2-3 years and in that time, we help you save for a down payment and build your credit score. Before the program ends, you will have the opportunity to qualify for a mortgage and exercise your option to buy the home. You are given exclusive rights to purchase the home at a predetermined price and use your saved down payment to purchase it at the end of the program.
Why homeowner in-training program?
We are happy and take pride by the ability of our RTO program to educate and train aspiring homeowners to become full-fledged homeowners who are proud to not only get a home for their family, but also exercise what it takes to maintain a home and manage their budget for a home. Our clients also have the freedom to improve the home they are living in, increasing the value (equity) of the home when they exercise their option to purchase. These individuals are fully committed and ready to take the next page in their life and become homeowners.
I am a business owner and have issues in my credit history, (or a new immigrant with zero credit history) could I still get into the program?
Our mortgage specialist will assess your financial situation and qualification in 2-3 years to see your eligibility of the program. While you’re in our program, we will give you action plans to follow to increase your credit scores and qualify for a mortgage after the term. We have helped business owners, and people with bruised to zero credit history qualify for a mortgage in our program.
Do I have to pay a down payment?
Yes you do in a form of a premium called Initial Option Consideration (IOC) which is based depending on the purchase price of the home. The Initial Option Consideration sits around 2-3% of the purchase price of the home and is negotiable depending on your financial situation. At the end of the term, the IOC premium will turn into a part of your down payment when you qualify for a mortgage and exercise your option to purchase.
Is the term of the program negotiable?
Yes, it is negotiable depending on your financial situation. Our program is around 2-3 years and that is ample time to build enough qualification for a mortgage. In some special cases, that term could prolong for a couple of months to one year.
What if there’s a need for repair in the house, who manages and repairs for it? And who maintains it?
It depends. One of the beauties in our program is you really get to train and have the mindset of being a homeowner, that’s why we call it a homeowner in-training program! When there’s problem in the toilet or lighting as a homeowner, do you call your bank or home associations? Or do you plan it to be fixed by yourself or someone else? We hope your answer is the latter. You are not just a renter anymore when you get into our program, you are a “homeowner trainee”, and we help you prepare yourself financially, mentally, and emotionally as homeowners. You’ll manage and pay for minor and medium fixtures in the house. What’s more, you could add aesthetic improvements and renovation on the house (as long as it’s not foundational although negotiable) which would increase the value (equity) of the home. For major repairs, we will have to manage and deal with it. As for maintenance such as daily house cleaning, snow shovelling, spring and fall cleanup, you will be responsible for it, as any homeowners would do.
What happens if I cannot pay for monthly payments?
It is your responsibility to pay for monthly payments on time, just like how you would typically pay for a mortgage. If you miss a payment, you will fall under default on the program. If you’ve been in default for over a month, we have the right to proceed with legal actions to shelter our investments in the property.
Who pays for the taxes and insurance of the home?
We would pay for the taxes and insurance during the term of the program to continuously secure your home. When the term ends and when you exercise your purchase to option and have full ownership of the home, you will have to pay for these expenses. Don’t worry, we’ll help and guide you throughout the program and prepare you of the cost associated on these expenses.
We are not sure If we are able to pay for monthly payments, can we still get a home?
We will do our best to find you a home depending on your financial situation. This allows you to afford
the monthly payments and qualify for a mortgage to fully purchase the home after the program. It means finding a property that really meets your budget and could afford.
Is the predetermined purchase price of the home negotiable?
Predominantly, the purchase price of the home is determined by the average appreciation rate of the property in the area. A great advantage for that predetermined price is it is secured upon agreement and regardless of how much the appreciation of the property increase after the term, you still purchase it at that price. Another great advantage of this is that you get to plan ahead of time on your budgets every month/year and could put more offence in saving as you know how much your monthly payments are going to be.
What are the initial requirements needed for this program?
There are many factors that we look for when helping aspiring homeowners. This include your overall background and financial qualification. As a minimum qualifier, we’re looking to qualify individuals/clients with a minimum gross yearly income of $65,000 (lower depending on some areas in Ontario) and a minimum initial deposit of $10,000 that’ll be counted as part of your down payment once the term ends and you exercise your option to purchase. Once we start working with you, we'd be collecting more information and documents to understand your situation and help you better.