About Our Lease-to-Own Program
A Lease-to-Own (aka Rent-to-Own) home purchase is a lease combined with an option to purchase the property within a specified period of time. The purchase price is established at the beginning of the lease term, and is guaranteed with an Option fee paid by the tenant-buyer (typically less than 5%). The tenant-buyer also pays a premium monthly rent which includes Lease Option credits. The Lease Option Credits and Option fee are credited towards the purchase price when the tenant-buyer exercises his/her option to purchase the property.
Conventional lenders such as banks have strict lending guidelines that restrict many applicants from qualifying for a mortgage. Qualifying to purchase a home through our Lease-to-Own program is easy! If you have reliable income to support the monthly lease payments and are able to provide the required Option fee, then you may be qualified.
The lease is typically based on 1 to 3 year term. The lease term works as a time benefit for you to establish or restore credit. You can exercise your Option to Purchase the property any time during your lease term.
An initial Option fee is required at the beginning of the lease term and it will be credited towards the purchase price. In addition, a portion of each monthly lease payment is credited towards the purchase price. When you exercise your Option to Purchase, you will be in a stronger position to qualify for your own financing.
The purchase price is a conservative estimate based on the future value of the property two years from the day you move in. It is established at the beginning of the lease term and is guaranteed for the entire length of your lease term. If, by the end of your term, the market appreciates strongly and your property is appraised higher than your Lease-Option price, then you will benefit directly from the appreciated equity.
Your monthly lease payments are inclusive of the following fees: building insurance, condo/strata fees (if applicable), property taxes, rent payments and Lease Option credits. You are required to set up and maintain payments for services/utilities such as content insurance, hydro and gas (if applicable). Your lease payments do not include optional utilities such as cable tv, telephone and internet.
When you are ready to exercise your Option to Purchase at the end of your lease term, you may decide to choose your own lending institution or we can align you with a certified mortgage broker. Either way, we will present a variety of options to help ensure that you realize your dream of home ownership!
