RENT TO OWN
- Have you been turned down for a mortgage?
- Maybe you don’t have enough of a down payment or credit that needs repairing?
- New to the country?
- Working your way back from a bankruptcy or consumer proposal?
- Get out of the rental rat race. None of these things has to bind you to a lifetime of renting. Want to start paying yourself first? Rent to own is a very viable option for those that can’t get a mortgage today but are willing to work towards getting approved while in a rent to own.
- Like a mortgage, rent to own is a commitment. If you aren’t ready for a rent to own today, that is ok. Just understand that missed payments etc. will result in the termination of your program and a loss of your down payment and any additional funds you accumulate through the payments you do make. You need to have the right mindset to succeed and understanding the commitment is the biggest part.
- Credit is not a disadvantage of a rent to own but the homebuyers lack of attention to repairing their credit is. Repairing your credit takes hard work and discipline. Giving credit repair the focus it requires will result in qualifying for your own mortgage, not giving it the focus it needs will likely result in you being asked to leave the house at the end of the program when you can’t qualify for a mortgage.
If you don’t have the means to put a down payment on a home right now or don’t have strong enough credit, but you want your rent payment to actually go toward an investment, renting to own is an excellent option. The feeling of being secure in your own place (no risk of being asked to leave by a landlord that wants to move in)is one obvious advantage but there are many more.
Just like anything in life, there will always be disadvantages to offset the advantages. Rent to own is no different. Despite having many advantages for someone looking at rent to own, here are a few of the pitfalls you have to be mindful of.
CENTURY 21 B.J. Roth Realty Ltd., Brokerage*