Home Rent to Own | Power of Sale/Foreclosure | Credit Management The Best Win-Win Options To Have A Home In Canada | Page 4

Looking To Buy Your Forever
Home? This Might Be For You
• The good and the bad
o Your credit score does not matter as much as it would if you would apply
for a mortgage. It also allows you the benefit of building up your scores
and at the end of the tenancy, you might even be eligible for a loan
while also having paid most of the down payment. There is also the
benefit of trying out the home before deciding if it is a good fit. This way,
you can experience firsthand if there are any issues with property, if the
neighbourhood is to your liking or just change your mind due to
unexpected circumstances.
o There are some potential downsides as well. Probably the biggest risk is
that the money you pay on top of the rent is non-refundable. Should the
deal fall for any sort of reason, such as a decrease in value, you will lose
the entire amount that has been put towards the down payment.
Moreover, it is utterly important that you read and understand all contract
terms so that you do not end up paying more or even worse, lose the
ability to purchase the property. Some contracts specifically state that in
the case of missed or delayed payments – that is on top of the rent,
buyers can lose the right to purchase and the amount paid towards the
down payment up to that specific date.