Frequently Asked Questions

What is Rent to Own and how does it work?

Rent to Own is completely different than traditional renting. Rather than your money going towards paying down someone else’s mortgage, you are putting money every month towards owning a home that will be yours in a few short years.  A lease is signed for a specified length of time (typically 1-3 years) and you are given the exclusive option to buy the property during that time (this means that no one else can buy it but you).

We are obligated to sell to you, however you are not obligated to buy.  100% of your option fee/down payment as well as a portion of your monthly rent is credited towards the purchase price of the home if and only if you purchase the home.

It will allow you to live in a home that will be your very own while you save for a larger down payment. It also gives time to clean up any past credit issues.

Do I need a down payment?

You do need to pay a deposit (an “option fee”) at the beginning of the lease, however this can be less than a traditional down payment required by banks (the minimum we are able to accept is 4% of the purchase price of the home).  This fee is credited back to you when you purchase the home and will become part of your down payment.  In addition to this, each month a portion of your rent is also set aside and credited back to you when you buy the home as the second part of your down payment.

How much do I need for the option fee?

Again, this varies depending on your situation, however, the minimum we are able to accept is 4% of the price of the home.  We do need to receive the option fee in order to have a firm commitment from you and to offer us some protection as well.  However, we can be flexible.  We can offer you options and we will always do our best to work with what funds you have available.

As a portion of your monthly rent is also going towards your down payment, the higher the option fee paid up front, the lower your monthly rental credits will be.  On the flip side of this, if your option fee is lower, your monthly rental credits will be higher.  For each of our clients we try to balance the size of the option fee, how much they are paying in monthly rent, and the length of the rent to own term.

How do I know if Rent to Own is right for me?

Rent to Own is designed for people who can afford home ownership but cannot receive traditional mortgages from banks and lending institutions.  If you are able to pay a 4% down payment and can afford a reasonable monthly payment, then Rent to Own might be the best solution for you.  We do encourage all of our potential clients to meet with their bank or mortgage broker first, prior to pursuing our program, to see if they are able to qualify for traditional financing.

What if I have bad credit?  Or no credit?

This is perfectly fine.  We understand that life happens and not everyone is the same.  Being able to rent to own a home is based less on your credit history and more on your current income, having a reasonable amount for the option fee, and the ability and desire to work towards repairing your credit.

This is also why we have a lease term for a specified period of time and why we have you enroll in a credit coaching program; to give you the ability to repair your credit, yet live in the home you want while your credit is improving.

What are the advantages to Rent to Own?

The biggest advantage to Rent to Own is that you are able to stop renting and start owning a home sooner than you could with traditional lending institutions.  You are able to get into the market of home ownership, start building home equity, and stop throwing away money in monthly rent cheques.

Why One Tree Real Estate Solutions?

We want to ensure that you are set up for success and are given every tool necessary to rebuild your credit.  This is why we also set you up with our credit coach who will show you what steps need to be taken in order to make sure you will be able to qualify for a traditional mortgage at the end of the term. Also, we are a proud founding member of the Canadian Association of Rent to Own Professionals (CAROP) which shows that we are committed to operating our business ethically and with the best interest of our clients (that would be you) at heart.

How long is the term and how soon can I own the home?

The term depends on your unique situation. Typically it is anywhere from 12 months to 3 years.  Once you are able to qualify for a traditional mortgage you can purchase the home and become the owner.  Our goal is for you to get both your credit and down payment built up to a point where you will qualify for a traditional mortgage before the end of the term.

What Happens If I Do Not Want To Buy The House At The End Of The Lease?

We have many different options; if you need more time, we may be able to extend the lease.  Another option is you can choose to walk away and owe us no money, however please be advised that both the option fee and monthly rental credits you have paid are non refundable.

We want to work with individuals who are committed to working towards their goal of home ownership. We will do everything we can to help our clients with this goal.

I love the idea; what is the next step?

All we need to start the process is your completed application form.  Please click the “Apply Now” button at the top of the page and fill one out. We will then contact you within three business days to discuss your eligibility and discuss next steps.

Didn’t find the answer to your question here?  Click the “Contact Us” button on the side and let us know what your question is!

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