How does Rent to Own Work?

• Do you want to own  your home instead of rent?

• Did the bank turn you down for a mortgage?

• Do you have atleast 4% down payment?

• Do you have a steady income?

• Do you currently pay 1900+ / month in rent + utils?

• Do you want to pick your own house?

If you answered YES to the above, than a rent-to-own home might be the ideal solution for you.

Sounds great but how does this work?

Great question.  A Rent-To-Own is very similar to a car lease.

With a car lease you put down a deposit and make payments for a specified period of time at the end of the lease you have the option (not the obligation) to purchase the car for a predetermined price.

A rent to own works in much the same way. A buyer puts down a “purchase option” deposit, usually  less than the traditional 5% required by the bank and makes a monthly payment. A portion of the rent is a credit towards the future down payment.  The end purchase price is predetermined at the time of signing.

What are the Benefits of Rent to Own vs. Traditional Rentals or Leases?

Simply put, the main benefit is putting you in your own home quicker.  With traditional rent, your rent goes in the landlords pocket and you have nothing to show for at the end of your lease.  With a rent to own home, a portion of your rent goes toward the eventual downpayment on your home.  Other key benefits include:

• • • You don’t need to qualify with a lender – we approve you directly
    • You don’t need a 20% downpayment – 4% is often enough to get started
    • You don’t have to have a spotless credit history- we help you rebuild your credit
    • You get into your house now vs. years down the road
    • You lock in your purchase price upfront
    • You get to pick your own house

What separates Housecents from other Rent to Own companies?

Housecents is a family run business that offers a unique approach that focusses on YOU (the tenant/buyer) and YOUR needs.  Most rent to own companies focus on finding a property first and then advertising it to potential tenants.  At Housecents we work with qualified tenant/buyers and help them find a house that suits there needs.

This approach revolves around YOU and not the needs of real estate investors and their limited inventory.

• • Our system is focused on YOU and YOUR needs
  • Once qualified YOU get to pick the house that meets your needs (that’s right – you get to shop on MLS just like any other home buyer would)
  • Access to our highly skilled Realtors to help ensure you find the right house in the right neighborhood for the right price

Who is Rent to Own for?  Rent to Own buyers generally fall into the following categories:

• • Self employed
  • Small business owners
  • Good income but no credit history
  • Good income but poor credit
  • Previously Bankrupt or Consumer Proposal
  • New to Canada
  • Lack a down payment large enough to obtain conventional financing

How do I get started?

Start by telling us a bit about yourself by completing the online application form here 

Frequently Asked Questions

Q. I like the concept but how do I select my new home and how much can I spend?

• Great question – after we determine that you are a good candidate for Rent-to-Own, we will introduce you to a real estate agent that is familiar with the area and you can begin shopping for your new home. We will set a budget together based on a number of factors such as monthly lease budget, downpayment and eventual purchase price. These factors all go into helping you choose the right home for the right price.

Q. I like the idea of shopping MLS listings but I already have my eye on a particular house?

• No problem, providing the house you have your eyes on meets the criteria we discussed above, we will try to buy it for you and make it your own home!

Q. I have bad credit and have been turned down by banks – can I still Rent-to-Own?

• Yes – in fact most tenants we work with have credit issues that need time to heal. Perhaps you had a past bankruptcy or some debts that need to get repaid. Providing you have strong monthly income and the ability to repair your credit, we can likely get you in your dream home right away.

Q. I like your program but don’t have a downpayment – can I still qualify?

• We require a small purchase option downpayment for every property. Without this it will be extremely difficult to ensure your end purchase is successful. Have you tried looking to family members or investments for downpayment assistance?

Q. What Makes Someone A Good Rent to Own Candidate?

• • Low or No Credit – If a potential buyer has been turned down by a bank because of credit problems a Rent-to-Own can work for them. However, it is important for the buyer to have a realistic plan to get their credit back on track. (We have a program designed specifically for this.)
  • New to Canada – Another situation where a Rent-to-Own can be useful when a buyer is new to Canada. Often when new immigrants come to Canada qualifying for a mortgage can be difficult. A Rent-to-Own allows the new Canadian to get a foot on the property ladder earlier than would otherwise be possible.
  • Newly Self-Employed – Buyers who have been self-employed for less than 2 years will find it difficult to qualify for a mortgage at a typical bank. Since most lenders require a history on your self-employment income a Rent-to-Own can give the self-employed buyer a chance to get their business going while still working towards homeownership.

Q. How long does it take to get into my new home?

• A typical rent to own  can take 6-12 weeks to arrange. It largely depends on the house you choose and the closing date negotiated with the vendor. Sometimes a house may be sitting empty and we can complete the transaction in under two weeks. Other times the vendor may already be living in the house and may require time to move out and find their new home.

Q. What sort of legal agreements are involved?

• A rent to own transaction is typically governed by three legal agreements:
  • Lease Agreement – a typical rental agreement outlining the conditions of the rental term and lease payments.
  • Occupancy Agreement – outlines the responsibilities of the tenant and owner.
  • Option to Purchase – outlines the final purchase price and closing details (typically 36 months from start of rental term)
• As with any legal transaction, we encourage you to review the documents with your lawyer.

Q. Can I make improvements to the house?

• Yes! We ask that you consult us before any major improvements however making improvements is a great way to add value to your new home.