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Rent to Own
Simply put, you are renting a home while contributing to your down payment for that home. You rent a home from us for a pre-specified period of time. You will then have the option to buy that home at the end of the rental term at a pre-determined price.
Who Is The Rent to Own Plan For?
Renting to Own your home can be for anyone. The most common people that do rent to own are:
1. Buyers who would like to own a home but do not quite qualify for a mortgage.
Some common causes of mortgage denial would be:
- Insufficient down payment required for a mortgage
- Lack of credit history
- Small Business Owner or Self Employed
- Divorce
- Bankruptcy
2. Young professionals just starting out.
3. Families that have been renting but now want to own.
4. Anyone just moving to an area that would like to live in the area before purchasing a home.
How It Works
- We either have or find a home for you.
- Together we work with a mortgage broker to determine if you will qualify for a mortgage at the end of the rental term.
- Together we agree on a rental term (1-3 years) and purchase price.
- You sign a rental contract for the rental term and an option to buy contract for the purchase of the home.
- You pay a small down payment of the purchase price.
- You provide interior insurance for the property.
- You pay the rent and the refundable rent credit** on time every month.
- We pay the property taxes and exterior insurance.
- You handle all repairs up to $500.00 during the rental term.
- Near the end of the rental term you obtain a mortgage for your home.
- We apply your original down payment and the rent credits towards the purchase price.
- We receive the mortgage funds from your lender.
- You celebrate the purchase of your new home.
Examples
The following are examples for select areas of Calgary based on current market rates. The examples are for informational purposes only and may vary depending on individual circumstances and changing market conditions.
Rent to Own Example #1:
| 1 BEDROOM + DEN 1 BATH 578 SQ FT CONDO IN SE CALGARY | ||
|---|---|---|
| Down payment | $2270.00 | 2-5% of Purchase Price |
| Rental Term | 3 Years | 1-3 Years Negotiable |
| Monthly Payments * | $980.00 | Check #1 + Check #2 |
| * Check #1 | $800.00 | Rent Check |
| * Check #2 | $180.00 | Rent Credit Check (Refundable**) |
| Rent Credit | $6480.00 | $180.00 X 36 Months |
| Purchase Price after Rental Term | $175,000.00 | Agreed to Before Rental Begins |
| Total Down Payment | $8750.00 | Down Payment + Rent Credits |
| Amount Owing to Purchase | $166,250.00 | Purchase Price - Total Down Payment |
Rent to Own Example #2:
| 2 BEDROOM 1 BATH 764 SQ FT CONDO IN SW CALGARY | ||
|---|---|---|
| Down payment | $4300.00 | 2-5% of Purchase Price |
| Rental Term | 2 Years | 1-3 Years Negotiable |
| Monthly Payments * | $1100.00 | Check #1 + Check #2 |
| * Check #1 | $900.00 | Rent Check |
| * Check #2 | $200.00 | Rent Credit Check (Refundable**) |
| Rent Credit | $4800.00 | $200.00 X 24 Months |
| Purchase Price after Rental Term | $182,000.00 | Agreed to Before Rental Begins |
| Total Down Payment | $9100.00 | Down Payment + Rent Credits |
| Amount Owing to Purchase | $172,900.00 | Purchase Price - Total Down Payment |
Rent to Own Example #3:
| 1 BEDROOM 1 BATH 800 SQ FT CONDO IN NW CALGARY | ||
|---|---|---|
| Down payment | $4300.00 | 2-5% of Purchase Price |
| Rental Term | 3 Years | 1-3 Years Negotiable |
| Monthly Payments * | $1300.00 | Check #1 + Check #2 |
| * Check #1 | $1100.00 | Rent Check |
| * Check #2 | $200.00 | Rent Credit Check (Refundable**) |
| Rent Credit | $7200.00 | $200.00 X 36 Months |
| Purchase Price after Rental Term | $230,000.00 | Agreed to Before Rental Begins |
| Total Down Payment | $11,500.00 | Down Payment + Rent Credits |
| Amount Owing to Purchase | $218,500.00 | Purchase Price - Total Down Payment |
Rent to Own Example #4:
| 2 BEDROOMS 2 BATHS 1200 SQ FT TOWN HOUSE IN SW CALGARY | ||
|---|---|---|
| Down payment | $6770.00 | 2-5% of Purchase Price |
| Rental Term | 2 Years | 1-3 Years Negotiable |
| Monthly Payments * | $1800.00 | Check #1 + Check #2 |
| * Check #1 | $1530.00 | Rent Check |
| * Check #2 | $270.00 | Rent Credit Check (Refundable**) |
| Rent Credit | $6480.00 | $270.00 X 24 Months |
| Purchase Price after Rental Term | $265,000.00 | Agreed to Before Rental Begins |
| Total Down Payment | $13,250.00 | Down Payment + Rent Credits |
| Amount Owing to Purchase | $251,750.00 | Purchase Price - Total Down Payment |
Rent to Own Example #5:
| 3 BEDROOMS 2.5 BATHS 1500 SQ FT HOUSE IN SW CALGARY | ||
|---|---|---|
| Down payment | $7600.00 | 2-5% of Purchase Price |
| Rental Term | 3 Years | 1-3 Years Negotiable |
| Monthly Payments * | $2100.00 | Check #1 + Check #2 |
| * Check #1 | $1800.00 | Rent Check |
| * Check #2 | $300.00 | Rent Credit Check (Refundable**) |
| Rent Credit | $10,800.00 | $300.00 X 36 Months |
| Purchase Price after Rental Term | $368,000.00 | Agreed to Before Rental Begins |
| Total Down Payment | $18,400.00 | Down Payment + Rent Credits |
| Amount Owing to Purchase | $349,600.00 | Purchase Price - Total Down Payment |
Rent to Own Example #6:
| 4 BEDROOMS 2.5 BATHS 1900 SQ FT HOUSE IN NW CALGARY | ||
|---|---|---|
| Down payment | $12,200.00 | 2-5% of Purchase Price |
| Rental Term | 2 Years | 1-3 Years Negotiable |
| Monthly Payments * | $2600.00 | Check #1 + Check #2 |
| * Check #1 | $2150.00 | Rent Check |
| * Check #2 | $450.00 | Rent Credit Check (Refundable**) |
| Rent Credit | $10,800.00 | $450.00 X 24 Months |
| Purchase Price after Rental Term | $460,000.00 | Agreed to Before Rental Begins |
| Total Down Payment | $23,000.00 | Down Payment + Rent Credits |
| Amount Owing to Purchase | $437,000.00 | Purchase Price - Total Down Payment |
** The rent credit will make up part of the down payment that will be applied to the purchase price at the end of the rental term.
