Owning your dream home is one of the biggest dreams for many families in here in Canada. However, with the continuous rise of real estate prices across all provinces, it’s becoming harder and harder for people to save for a down payment and get into homeownership. That’s why the Liberal Party is also promising a $1 billion in loans and grants to improve and develop rent to own projects with private, non-profit, and co-op partners for aspiring homeowners. This will open up opportunities to help renters actualize their homeownership dream while renting.
The rent-to-own program aims to help financially struggling renters who can’t meet the threshold of qualifying for mortgage loans. By committing to a rent to own program, renters can hold onto their dream homes by leveraging on their monthly payments.
By delaying the home buying process, the renters get a chance to rebuild their credit score and align their finances so that they can save up the required down payment at the end of the rent-to-own agreement period.
Benefits of a rent-to-own program
Renters are given exclusive rights to purchase their rental homes at a set price that was agreed upon initially after the end of the rent-to-own program.
The saved premium makes it easy for renters under the rent-to-own program to raise enough down payment to enable them to qualify for a mortgage after the end of the term. This is one of the main gaps that rent-to-own program aims to achieve and that’s why it’s a customized financial solution for renters who are struggling with poor credit scores, or insufficient down payment.
Renters are allowed to live in their home before they can own it. Such arrangements help renters to get a sense of homeownership, especially if you’ve been renting your whole life. The toilet is clogged, do you call your landlord, or do you fix it? Remember, the place you’re living in is your home already after the term. You get to understand what it means to have a home and adopt responsibility as a “homeowner”.
When families enter a rent-to-own program, they’re able to enjoy a fixed rent amount over the lease period thus, avoiding sudden hikes in rental prices. Where there is a fixed and predictable rental price, renters can effectively plan their monthly budget and set aside more cash for their savings account.
Getting a pet-friendly home is mostly a privilege enjoyed by those who own homes. Through our rent-to-own program, you can bring your furry family member and enjoy the home with them – in a bigger home too.
The rent-to-own program has no moving-in delays. Once you agree to the terms and sign the agreement, you are given the keys to move into your new home on the agreed-upon possession date.
As a renter, you get the opportunity to pick the home of your choice based on your qualification. We have different types of homes in different neighborhoods and cities in Ontario, Canada that a renter can choose from once they enter the program.
Rent-to-own programs also give renters a unique opportunity to build value to the home by making some home improvements and renovations. Some of the common home areas where renters can often add value or renovate are; kitchen fittings, bathrooms, and backyard improvements.
With an effective and well-regulated rent-to-own program, homeownership ladder will be within reach for many renters who have issues with credit or insufficient down payment. If you have always wanted to transition from a renter to a homeowner, we have good news for you. Kindly sign up for our rent-to-own pre-approval form to get you started with a curated game plan and steps to homeownership.