Home Rent to Own | Power of Sale/Foreclosure | Credit Management Have You Been Declined For Home Financing? | Page 3

Rethinking Homeownership
For Canadian Newcomers
• There are various rent to own programs, each with its own set of
benefits. One would be a lease with the option to buy the end. This
works pretty much like a basic home lease; the tenant pays rent as
normal and has the option to buy the property at a later date for a
price that has been agreed upon at the beginning of the contract.
More specifically, imagine the home you are looking to own is worth
$280,000. By entering a rent to own contract, you will have the right
to purchase the property in a couple of years for $310,000.
• Another option would be renting to own through installments. This
type of contract requires the tenant to pay the seller/landlord what
is considered to be the rent and an extra payment that is deducted
from the house’s selling price. The advantage of this program is that
once the value of the house and the price are agreed upon, you get
closer to owning the property after every installment made to the
seller. It also means that regardless if the property’s value goes up,
you will still have to cover the pre-agreed price. Important to note
here is that if as a buyer, you will miss one or more payments, the
seller has the power to take away all equity and dissolve the
contract.