In a traditional rental situation you are often paying fair market rent to live in a place that you have very little control over. You may ask your landlord, can I paint, can I have pets, can I renovate the kitchen and keep the $9000 of increased value I just created? The answer most often is, No! When the landlord wants to sell or move into the home themselves, you are at their mercy. In our rent to own program, you get to call the shots in almost every aspect. You will still pay fair market rent during the term of the program and you might even pay a Monthly Option Payment on top of that (see below), but you will now be settling comfortably into your own home! This home will come with a fixed, pre determined purchase price that is agreed to from the beginning of the rent to own term. You can now upgrade and inhabit your new home as you wish. You will benefit in your own pocket financially from any upgrades that are made. As long as you maintain the property and make your payments you will never be asked to move out, after all, this is your home now! So while renting to own may force you to save towards your future goal via the Monthly Option Payment, in the end it is not any more expensive than traditional renting and you will be in control of your future, and your home!
Rent to Own is for people who are unable to qualify for a traditional mortgage to purchase a home at the present time. Some reasons could be low down payment, divorce, new business, new to Canada, poor credit or self-employment.
If you are accepted into the program, we require a non-refundable application fee of $800. This fee is meant to show your commitment to seeing the process through. It will be held in trust and applied to the purchase of your home when that time comes. Prepare to spend roughly $1000 to pay for a home appraisal and home inspection for the residence that you wish to buy.
We have developed a Rent to Own program that follows strict success guidelines we’ve adapted over many years. Before we even start to talk about money, we ensure that this program is the best option for you, and that we have the most effective strategy to help you:
  1. Fix your credit
  2. Build equity, and
  3. Qualify for a mortgage within a few years.
We regularly turn people down from our program who are able to make their purchase without our help. We only want to structure win win deals.
Our clients enjoy being able to get into the home of their now! This is done by:
  1. Monthly Credits: You will earn monthly credits towards you down payment. Each and every month you are saving money towards the possible purchase of your home. This helps you to build equity home faster than with a traditional mortgage – no more wasting all your money on rent.
  2. Home Appreciation: Any improvements that you make on your home will increase the value above and beyond your final price. This increase in value is yours to keep because your price is locked in.
  3. Move Into Your Home Now: Instead of waiting until you can qualify for a mortgage, you get to move into your home now and qualify with the bank later.
  4. Test Drive: Because you don’t officially own the home during the lease, you get to test drive the home to make sure that it is just right for you.
  5. Your Credit Score: During the lease portion of this program, we will work with you to improve your credit score so that you can obtain financing when you exercise your purchase option.
We specialize in working with people who have “bruised credit”. Our main objective is to asses whether your financial circumstances can be repaired and that you will qualify for a conventional mortgage when you are ready to purchase. It really depends on your circumstances since we are not credit driven. All we ask is that you are honest when you provide us with your financial information.
  • Lack of adequate Initial Option Money. Depending on your situation we require a minimum of 3-5% of the value of the home up front. This is typically less than what you would need down for a traditional mortgage.
  • Your time on the job is too short. We are looking for applicants with more stable employment; minimum of at least 6 months on the job and a combined family income of $55,000 per year.
  • You are actually able to purchase the house without us. This is one of the most common reasons. We will only walk through the Rent to Own process with you if we feel that we can actually be of benefit to you.
  • You currently do not have a high enough income to service all of your debts and a house payment.
We will assign a credit counselor or mortgage broker to you, who will guide you throughout the Rent to Own term. They will ensure that you are on the right track in repairing your finances and credit so that they can match you up with a lender down the road.
Yes, as soon as you are approved! We will tell you the amount you are able to spend to find your dream home!
Your rent payment will be reflective of current market rent, however, there may also be an Option Payment required in addition to your regular rent. This would only take place in the event that your initial money down is less than 7% of the home value. Another reason you may be required to pay a separate monthly Option Payment is to show the bank in the future that you are capable of a payment high enough to sustain a regular mortgage payment. (All Option money paid over the term of the lease is credited to your purchase if/when you buy the house).
The monthly option payments (credits) are fixed throughout the duration of the program, they will not change.
There are two forms of Option Payments during the Rent to Own program. The Initial Option Payment is the rent to own version of a "down payment". The Initial Option Payment guarantees you the right, contractually, to purchase your rent to own home for a previously agreed upon fixed price at the end of the rent to own term (1-3 years). The second form is the Monthly Option Payment. This payment will only apply if your Initial Option Payment (money down) is less than 7%. Our rent to own program is a bridge to get you from where you are now into home ownership. If you don't have the funds required (approx 7% of home value) to purchase your rent to own home at the end of the contract then you can think of the Monthly Option Payment as a forced savings account that will accumulate the total investment needed to buy your home from us in the end! Keep in mind, Option Payments (your RTO savings account) are non refundable inside the length of the rent to own contract, however, they are applied at 100% full value to the purchase of your home at the end of the program!
We serve within the city limits of Kamloops and Vernon, British Columbia.
Click here to download our RTO Application