Frequently Asked Questions

One of the most frequently asked questions about our Lease Option program is, “how do we appropriately decide on the future purchase price of the property at the end of term?”

In a Lease Option (or Rent-To-Own) program, our clients get to look for a home today, move in, and then purchase it at the end of the term at a pre-determined price. So how is this pre-determined purchase price determined at the time of the clients’ enrollment into the program?

A few factors play a role in determining the future purchase price:

Today’s market value of the property
When a client identifies a desirable property, we purchase the property based on today’s market value or, at a price, which the seller is willing to accept at the time

Length of the Lease term
Based on the area and property type, a conservative annual appreciation rate is determined based on historical market data. For instance, if the market data suggests an annualized appreciation rate of 7%~10%, we will use 4%~5% as the basis for our calculation

Depending on the length of the program (usually 2~4 years), the appreciation rate is then applied to calculate the future purchase price based on today’s closing value

Approved mortgage amount from our Credit Team
Verification that the end purchase price will be within the expected approval mortgage budget in the future as provided by the mortgage expert

Benefits of a pre-determined future purchase price:

By fixing the future purchase price, the problem of market volatility is removed, hence removing uncertainty on affordability in the future
Fixed purchase price means a fixed down payment amount, eliminating the problem of trying to catch up with housing price
As the market appreciates above and beyond the pre-determined purchase price, the client is able to build equity through the program

To understand if a Rent-To-Own is right for you, please complete the Lease Option Application online or schedule a call with one of our friendly consultants.

Our minimum deposit to enter the program is 3% of the approved purchase price or $10,000, whichever is greater.

Yes, if you have been through Bankruptcy or Consumer Proposal you can still qualify for our program. We understand people have made mistakes in the past and have a full Credit Team that is dedicated to work with you throughout the program to increase your credit score and get you a mortgage.

Our Credit Team will set-up a Credit Analysis at the start of the program, which will outline items and tasks needed to be completed to achieve success. Our Credit Team will work with you throughout the program with follow up calls and visits to ensure you are getting the proper education and attention needed.

Yes, if you are self employed we can help you obtain your dream of home ownership even if the bank says No!

We understand banks do not review or approve your income the same as an individual employed through a company. We are able to work with you in order to obtain a mortgage by the end of the Lease Option Program.

We partner with you for home ownership. As you choose your own home and you have a right to the property, you are responsible for the upkeep of the property. This also prove to us that you can own a home and take care of any upkeep or maintenance on your home.

Our program is not just renting but instead a Home Ownership In Training Program. You will directly benefit from any improvements that you make to the property as it will increase the value of your home. Any additional improvements you make is added equity to the house and money in your pocket.

Please remember, all homes need regular ongoing maintenance, so you should budget accordingly when considering the monthly payments. When you first pick the home, it will be inspected by a certified home inspector and you know exactly what is required for that home in advance.

Your monthly payments are calculated based on the specific property chose and are the same costs as if you were on title.

The monthly payments cover:

• Mortgage Payment
• Property Taxes
• Insurance
• Additional Monthly Credits to increase your Down Payment

The great benefit with our Lease Option Program is that you get to chose your home. That’s the way Home Ownership should be! We will approve you for a purchase price and then you are able to find any house you want to buy within that approved purchase price.

We do not hold inventory or try to get you to move into a house we already own.

We require a home inspection to be completed. This can be a pre-home inspection or consultation during a viewing or a full home inspection after an accepted offer. This is for the clients protection so that the client fully understands the house and if there are any urgent or upcoming items that need to be addressed.

We would arrange the home inspection for a time that we can meet you at the house. The cost of the home inspection is your responsibility as this is your home and will inform you of any deficiencies or improvements needed for the home.

If you are unable to qualify for a mortgage at the end of the program, you have the option to extend the Lease Option Term for a few more years until you are able to qualify. The Program is set up to work with clients for Home Ownership. If you need to extend for any reason you do have that option.

One of the benefits of the program is that you get to chose your home. However, we do require a home inspection to be done and if the property is not in good condition or requires too many repairs than are achievable with the client, we will recommend looking at other homes. Usually the client makes this decision anyways.

A credit score is typically a number between 400 and 900 that depicts a consumer’s credit worthiness. The higher the score the better the consumer looks in the eyes of the lenders. A credit score is based on credit history the length of time the credit you have.

Some of the ways your credit score is affected:

Number of open accounts: Lenders like to see at least 3 active credit lines and your credit score will increase if you use those credits wisely.
Too many open accounts can lower your credit score;
Total levels of debt: Your credit score improves when you keep your debt levels at a minimum of 75% loan to value. Your score will increase when you consistently put payments on your debt.

Your credit is vastly effected by your repayment history. Missing one payment will be a hit on your credit, missing two or three can be detrimental. Making your minimum payments is key to keeping your credit score healthy.

Too many inquiries also has a negative impact on your credit. You don’t want to be going to lender after lender looking for more credit.

Your credit score is a key component to your financial health.

We have only 2 minimum criteria to apply for our program:

• Minimum Annual Combined Income > $65,000
• Minimum Deposit > 3% Purchase Price

If you have a job and deposit but you need help getting over that first hump of finding and purchasing a home, that’s where we come in. With financing and real estate expertise, we will guide you through the complicated process and help you move into your new home sooner.

The Lease Option Program is designed to fulfill your dream of Home Ownership. The program gives you the opportunity to move into your own home now before you can obtain a mortgage. The Lease Option program bridges the gap and allows our Credit Team time to work with you to repair your credit, pay off debts and build up a higher down payment.