Yes, you need a minimum of 11.5% of the price of the desired property, as well as 1-2% extra for the fees, depending on the situation. This down payment is used to pay the option on the property. This amount will be converted into a deposit at the end of the term and deducted from the sale price. The price paid for the option is refundable if you decide to no longer purchase the property, are not eligible to buyback, or if you default on your payments and must be evicted, but only after all costs incurred to the investor to liquidate the property. These included but are not limited to: any loss in rents, lawyers costs, damages to property, etc. We mention this because we are looking for families who want to be future homeowners. We are committed to providing outstanding credit repair and support services to all who are ready to own their own home.
Depending on the status of your file and if you have been in default during the course of the term, you can be offered a yearly renewal. This will give you more time to fixe your credit score so that you may buyback the house. We can go up to 5 years in total after that we will review your file and we will make a decision if we extend you or if jointly the clients and the investor choose to liquidate the property and return the remaining deposit back to the clients. We are flexible and we will work with our tenant-buyers to make sure there is a smooth transition regardless the outcome of the file.
As you will be the future owners of the house and you live in it, you are responsible for all current and future repairs and renovations. If a faucet starts to leak, it's your responsibility. Responsibilities must be assumed from the outset in the lease-purchase agreement. You are treated as the current owners in terms of responsibilities. We recommend all our clients opt for modern, renovated properties where they would not expect many maintenance or repairs in the short to medium term. Also, any major changes requiring permits must be approved by the investor.
Monthly credits are a part of your payment that you make each month. This amount is used to accumulate more down payment on your eventual purchase. Note that you should not be late on, or miss a monthly payment, as you may lose some or all of your monthly credits. Monthly credits are akin to equity in a normal mortgage. They are credited with the resale price each month and accumulate at the end of the term. When you buy the property, your option deposit is converted into a down payment.
The resale price is based on the rate of appreciation in the sector and a minimum resale value. This varies between $5,000 and $8,000 per year. For your comfort and so that there are no surprises, the redemption price is locked-in at the outset. If you are unable to purchase within the initial term, you can be renewed and then the resale price will be adjusted for year 4 and for year 5 (if required).
Your purchasing power is established by evaluating your income and your initial amount paid for the purchase option (down payment). The duration of the contract is evaluated according to your credit history and credit score. If you have gone bankrupt or engaged in a consumer proposal, this will also affect the duration.
Par contre, toutes modifications effectuées sur la propriété devront être approuvées par l’investisseur et il faudra en faire la demande par écrit (un courriel avec son approbation pourrait suffire, à sa discrétion).
Une lettre de confirmation sera envoyée par écrit et devra être conservée comme preuve de l’approbation des modifications par le propriétaire. Les rénovations devront être effectuées par un entrepreneur certifié.
You can do changes and updates to the property. However, any changes made to the property must be approved by the investor and must be requested in writing (an email with his approval may be sufficient, at his discretion).
A confirmation letter will be sent in writing and must be kept as proof of the owner's approval of the changes. Renovations must be done by a certified contractor.
As long as you abide by the option contract, the monthly payment is made, and you improve your credit rating, there is no risk involved. You put yourself at risk when you miss or are late on your monthly payments. If the investor has to evict you or we have to sell the property, after all costs incurred to evict, repairs to property, loss in lease payments, notary, lawyers , realtor fees have been paid, you will get your remaining deposit. You are your best guarantee in the buy / sell program!
The lease with option to buy is a contract signed between you and the investor that stipulates your option to purchase the house. No sale can be made until you exercise your option right during or at the end of the contract. Do not forget that the investor wants you to buy back your house so that he can use the funds elsewhere. It is in his best interest to see you succeed.
The investor becomes the owner and holds the house for you temporarily. Simply put, he only wants to invest money in an ethical manner and has no interest in occupying your home.
Insurance is strongly suggested because it protects your family in the event of an unexpected death
Prior to participating in the program, our mortgage broker will conduct a very thorough analysis of your situation and your file. This ensures that you have the financial capacity to recover your home.
If you can not fulfill all the conditions for a mortgage at the end of the contract, the investor can give you an extension of another year if necessary. This solution will be possible at the discretion of the investor. He will take into consideration his overall experience with you, your payment habits, and the improvement of your credit over the term in order to renew you one more year.
On the other hand, if you do not meet the bank's criteria because you have been negligent in the process of restoring your credit, have made late and/or missed payments, the investor is not obliged to accommodate you with an extension. In this case, the deposit you put down for the call option may not be refundable, and may be used as liquidated damages.
If you are serious and reliable, there will be no problem. The investor simply wants to see a sustained effort and maintain a good relationship with you during the term.
Si vous ne pouvez pas remplir toutes les conditions pour une hypothèque à la fin du contrat, l’investisseur peut vous donner une extension d’une autre année si nécessaire. Cette solution sera envisageable à la discrétion de l’investisseur. Il se basera sur son expérience globale avec vous, vos habitudes de paiements et l’amélioration de votre de crédit sur la durée du terme pour vous renouveler une année de plus.
Par contre, si vous ne répondez pas aux critères de la banque parce que vous avez été négligent dans le processus de restauration de votre crédit, en retard et/ou vous avez manqué des paiements, l’investisseur n’est pas dans l’obligation de vous accommoder avec une extension. Dans ce cas, le dépôt que vous avez mis pour l’option d’achat pourrait ne pas être remboursable et être utilisé comme dommages liquidés.
Si vous êtes sérieux et à votre affaire, il n’y aura pas de problème. L’investisseur désire simplement voir un effort soutenu et avoir une bonne expérience avec vous durant le terme.
You are responsible for repairs and renovations. If a faucet is leaky, or a door handle breaks, it's up to you to fix it. You must take care of the place, as you did before the transaction. You were, and are, treated as the owners of the house, thus including any necessary repairs or maintenance.
However, any changes made to the property must be approved by the investor and must be requested in writing (an email with his approval may be sufficient, at his discretion).
A confirmation letter will be sent in writing and must be kept as proof of the owner's approval of the changes. Renovations must be done by a certified contractor.
Par contre, toutes modifications effectuées sur la propriété devront être approuvées par l’investisseur et il faudra en faire la demande par écrit (un courriel avec son approbation pourrait suffire, à sa discrétion).
Une lettre de confirmation sera envoyée par écrit et devra être conservée comme preuve de l’approbation des modifications par le propriétaire. Les rénovations devront être effectuées par un entrepreneur certifié.
The resale price is based on the rate of appreciation in the sector and a minimum resale value. This varies between $5,000 and $8,000 per year. For your comfort and so that there are no surprises, the redemption price is locked-in at the outset. If you are unable to purchase within the initial term, you can be renewed and then the resale price will be adjusted for year 4 and for year 5 (if required).
Pour votre confort et pour qu’il n’y ait pas de surprise, le prix de rachat est fixe. Le prix de revente peut être revu seulement si vous n’avez pas rempli votre obligation d’améliorer votre cote de crédit et s’il faut vous donner une extension.
Leases last between 1 to 3 years. The duration of the contract is evaluated according to your credit history and credit score. If you have gone bankrupt or engaged in a consumer proposal, this will also affect the duration. During this period, you must make your monthly payments and improve your credit rating in order to buy back your house.
You are your best insurance policy in our rent to own program. So long as you comply with the lease with option to buy contract, the monthly payment is made, and you improve your credit rating, there should be no problem. It is a relatively simple program to understand and follow.
You expose yourself to a risk of losing your deposit and purchase option when you miss or are late on your monthly payments, are negligent with your credit, and you do not perform reasonable maintenance of the house during the term.
This is the same principle as making late mortgage payments or omitting to pay property and school taxes. If you do not pay them, you risk losing the house.
Vous vous exposer à un risque de perdre votre dépôt et votre option d’achat lorsque vous manquez ou êtes en retard sur vos paiements mensuels, êtes négligent avec votre crédit et vous n’effectuez pas un entretien raisonnable de la maison durant le terme.
C’est le même principe que faire les paiements hypothécaires ou payer les taxes foncières et scolaires. Si vous ne les payez pas, vous risquez de perdre la maison.