Is Lease to Own or Rent to Own right for you?
From Wikipedia, the free encyclopedia:
Rent to own is a real estate term relating to a real estate agreement which is comprised of a rental lease and a purchase agreement where the tenant has the option to purchase the property at a fixed price at a specified point of time in the future. It is also known as lease to purchase option, lease option, owner financing or lease-to-own.
The lease resembles that of a typical rental lease where the land owner, the lessor, allows the other party, the lessee, to occupy the property in return for a monthly payment. A portion of the lease is termed monthly option credit that converts to down payment at the end of the term if and only if the lessee makes the payment on schedule without any defaults. The option to purchase the property usually states the price at which the property is to be bought and the date at which the tenant is able to exercise the option. A security deposit is collected upfront and held as collateral without interest until the term is complete, after it would be converted to down payment.
If the program is executed properly, it becomes an incredibly unique opportunity that only a few people have been exposed to across Canada. The best part however, is that this program literally transforms the financial destiny of those who get to participate in the program.
Lease to Own can be done with as little as 4% down and is catered towards those with poor credit or cannot save enough down payment to qualify for a regular mortgage.
If you are interested in finding out more on Lease to Own, call us.