Renting vs Buying?
Why Should You Want Home Ownership?
As a renter, there are many reasons to consider homeownership.
When comparing owning to renting, you have to add up all of the figures, including the cost of your home, the size of your down payment, utilities, immediate repairs, interest rates and insurance, and compare them with how much you are currently spending on rent.
As a homeowner, you can reasonably expect the equity in your home to increase over time as your mortgage is paid down. That, combined with regular appreciation in property values, can be a rapid and rewarding way to increase your net worth. In contrast, the person renting over the same amount of time is left with no property investment but may have enjoyed lower living expenses.
Of course, you also have to place a value on the enjoyment and satisfaction that you will derive from owning your own home.
Why Rent To Own?
We all know the bank looks at 2 main factors when approving someone for a mortgage…. down payment and credit. Here is how we address both:
With rent to own, there is a term- typically 3 years. During the term of the rent to own period, a portion of your rent is saved every month. We call these credits. It is not uncommon for rent credits to accumulate anywhere between $6000-$10,000 during the term. You also need a small upfront down payment- we look for 3% of the purchase price. That down payment along with the monthly credits will go towards your down payment.
During the term, we will also help you get your credit back in good standing. Our credit specialists understand what the banks need to get you pre-approved. Previous bankruptcies and consumer proposals are not a problem. There are no fees to use this service- this part of our rent to own program.