Qualifying for Rent-To-Own A Home


Our Rent-to-Own A Home Program is designed for two primary purposes:

  1. to help people achieve their dream of home ownership;
  2. to help people avoid losing their home.
Our Rent-To-Own A Home Program might be a good solution for if you:
  • Have No Credit. Having no credit can certainly make it difficult to qualify for a mortgage. We can help you make sure that you build your credit properly, and provide you with a personalized strategy that will ensure that you end up owning your dream home.

  • Are New To The Country. Because your credit doesn't follow you when you immigrate to Canada, you'll need time to prove your worth in order to qualify for a mortgage. We'll show you the good habits you'll need to be successful.

  • Have Been Through Bankruptcy. Regardless of why you declared bankruptcy - medical issues, divorce, employment/job loss - most lenders will need to see at least two years of steady payment history, once discharged, before they will consider you for a mortgage. Our Rent-to-Own A Home Program is a personalized road map to follow, with your destination being home ownership.

  • Have Past Health Issues. Serious illnesses can certainly set you back and cause the debts to pile up. With a debt repayment plan and some techniques to help you repair your credit, you can be back on your feet and living in your dream home in no time.

  • Have Been Through A Divorce. Divorce can certainly be hard on your credit, and our Rent-to-Own A Home Program, along with a little time and some credit repair techniques, can help you get back on your feet.

  • Are A Victim of Identity Theft. You have good habits, pay your bills on time and have always dreamed of home ownership. Repairing the damage can take some time, as can repairing your credit report and score. A Rent-to-Own A Home Program can help bridge the gap between now and the time it will take to qualify for a mortgage.

  • Made Some Dumb Decisions. As long as you're ready to put your mistakes behind you and you are genuinely ready to make some changes to how you manage your finances, our Rent-To-Own A Home Program might work for you. We will consider your personal situation when qualifying you for our Program.
Always dreamed of owning your own home? Are you tired of renting, lack a downpayment or unable to qualify for a conventional mortgage? Need a temporary solution to avoid losing your home? If you're truly motivated to make a change and are capable of following a step-by-step proven program that will result in you owning your own home, then we invite you to apply for our Rent To Own A Home Program today.

To Qualify, You Must:

  • Be Genuinely Motivated: Are you committed and ready to proceed with a Rent-to-Own A Home Program?

  • Have Steady Income: We will eventually need to confirm your length of steady employment and your salary. If you are pre-approved, we will require, per applicant, a job letter, NOA's (2 yrs), T4's (2 yrs), identification (2 pcs., one with photo), pay stubs (2 most recent);

  • Have a Deposit of at least $5,000: You will need to provide a deposit between 3 and 10 percent of the purchase price of the home. This deposit will be saved for you to use towards your down payment at the end of you rental term. The amount of the deposit will depend on your personal situation, what monthly payment you can handle, and where the home is located;

  • Monitor Your Credit Report & Credit Score: We will require a current credit report and credit score for each applicant if you are pre-approved. Acceptance into our Rent To Own A Home Program includes, at no additional charge, enrollment in a Credit Repair Program. If you are pre-qualified, you will need to provide us with your credit report and credit score. Click here to request a copy of your credit report and score and read about how our Credit Repair Program works.
You must also have the money to cover your old debts plus your new lease payment, which is determined by analyzing your debt coverage ratio. Your total house-related costs must not be more than 32% of your gross monthly income, and your total debt must not exceed 40% of your gross monthly income.


SUCCESS TIP

To ensure success in our Rent-To-Own A Home Program, it is important to pay attention to what you can afford. The Canada Mortgage & Housing Corporation (CMHC) has published the following guidelines that you will need to follow:

Gross Debt Service Ratio (GDS): Used to determine if you are already in too much debt. Your home-related expenses (principal, interest, taxes, and heating only) cannot be more than 32% of your gross monthly income.

Total Debt Service Ratio (TDS): This is a more accurate calculation that lenders use to determine your total amount of debt. Your monthly total debt payments, which includes your home-related expenses as listed above plus your other payments (eg. car payments, loans, credit cards, lines of credit, etc.) cannot be more than 40% of your gross monthly income.

SAMPLE TDS CALCULATION

Enter monthly payment amounts for each of the following:

Bank Loan(s) + Auto Loan(s)+ Other Loan(s) + Credit Card(s) + Child Support + Rent + Heat [eg. $2,500]
Total Gross Monthly Income (before taxes) [eg. $6,700]

$2,500 ÷ $6,700 = 0.37 or 37% -> This scenario would qualify since the TDS ratio is less than 40%.

Qualifying at the End of the Rental Term

To ensure success, we also have to consider, based on your current income levels, whether or not you will be able to afford (within the above CMHC guidelines) your future mortgage payments after you purchase the home from us.

Once you submit our application, we will calculate the above GDS/TDS ratios for you, as well as your future mortgage payments. If you do qualify, we'll guide you through the entire process, providing step-by-step instructions tailored to your personal needs and situation. And, to ensure you qualify for a mortgage at the end of your rental term, we also provide guidance from a credit coach, who will monitor your progress and help keep you on track so that you are successful in qualifying when it comes time for you to purchase the home.

Benefits of Our Rent To Own A Home Program

  • Owning Your Own Home: Even though we'll be initially purchasing the home for you, your day-to-day experience will be just as if you own the home. As long as you pay on time and maintain the property as agreed, any extra work you put into the home will be your sweat equity to keep, since you will eventually own the home.

  • Stability: Rather than rent for the next few years, deal with landlords and other uncertainties associated with renting, and then look for a house to buy, why not move into your dream home now and avoid the move down the road?

  • Forced Savings: Your initial deposit is saved towards your down payment and, if you pay your rent on time, we will also save 20% of your monthly payment to be used towards your down payment. This way you'll definitely have the down payment ready to purchase your home at the end of your rental term.

  • Good, Bad or No Credit Okay: It doesn't matter if your credit is bad or if you've just been discharged from bankruptcy. Our Rent To Own A Home Program includes a Credit Repair Coach who will teach you how to fix your credit (so that you'll qualify for a mortgage by the end of your rental term).

  • Minimal Deposit: Compared to a conventional down payment and closing costs when buying a home, the initial deposit required is much lower for our Rent To Own A Home Program.

  • Security: Your interests are protected by legally-binding agreements (lease, occupancy, option to purchase, maintenance & utilities).

  • Build Equity Faster: The amount of equity you'll be building (your deposit and monthly option credits) is much larger than you would build in the first few years of a conventional mortgage.

  • Flexibility: We will work with you to establish a deposit and monthly payment that meets your needs and budget, and fits your lifestyle;

  • A Trustworthy Team: Our licenced real estate professionals will help you find the home of your dreams, within your budget. Our home inspectors and contractors will assist to ensure the home you choose is sound, and that any repairs are done right, on time and on schedule. Our mortgage brokers will work with you to find a mortgage at the end of your rental term.

  • Fixed Monthly Payment: Unlike rent, your monthly payment will remain fixed for the term of your lease agreement (typically one to three years).

  • Fixed Future Selling Price: The future selling price is also fixed, allowing you to benefit from any added value through renovations or market fluctuations.

  • Credit Repair Coaching: To ensure you are successful, we develop a personalized plan for you, along with coaching support.
It's easier than you think to qualify for our Rent-to-Own A Home Program, and there is no obligation to applying and exploring the program further. Please complete and submit our confidential online application. We will contact you if you pre-qualify to discuss the program in more detail.