Wednesday, 30 October 2013

What do I need to apply for Rent to Own program?

To apply for the Rent to Own program, you need to provide the following documents:

Rent to Own home FAQ
1.       A copy of your valid ID, i.e. driver’s license.

2.       Notice of Assessment in the last 2 years.

3.       Your home address for the last 3 years, name and phone number of your landlords in the last 3 years.

4.       Additional information such as your current monthly expenses including rent, outstanding loans, credit card .etc so that we can calculate the maximum house price that you can qualify for.

Once we collect all the information, you need to go through a credit check. If qualified, you will sign a Lease agreement with the landlord to Rent-to-Own the home for a term. Generally speaking, the term depends on how long you need to repair or build your credit and accumulate a minimum of 10% down payment at the end of the lease term. 

You will pay a monthly rent + option premium which goes towards your down payment. This amount varies dependent on the amount of the initial deposit you provide. Your goal is to accumulate 10% of down payment at the end of the term. For example, if the house worth $300,000, you have $6,000 deposit (2% of the home price). During the term, let’s say in 3 years, if you set aside a $300 as option premium per month, you will accumulate $10,800 at the end of the term. Your available down payment equals to $16,800 (initial deposit+ 36 months option premium), 5.6% of the home price in total.  


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