3 Questions EVERYONE Asks About RTO

If you're like most people, you've heard about Rent to Own and—while it sounds exciting—you have questions about how the process works. Here are three of the questions everyone asks me about RTO (and their answers):

 1. Can I choose the home I buy?

Yes. While you must take into account the same concerns as any other buyer in terms of budget, suitability, location, etc., you are free to work with a REALTOR® such as myself to choose your own home, once we reach that stage of the process.

I work with Clover Properties, a well-established Rent to Own Company here in Canada, and they believe that excitement and the love of your home is a key ingredient to RTO success (I agree!). As a result, they work with buyers to set a budget for the program, and then I work with you as I would any other buyer to look for the perfect home within that budget, where you may choose from anything currently available on the market.

2. How much do I need to get started?

While RTO can help buyers access the housing market sooner than they might be able to qualify for a traditional mortgage, there are costs involved in getting started. Clover will require buyers to enter the program with a modest down payment (approximately $15,000), and show a stable family income. Though credit score is not as important is it is for traditional lenders like banks, Clover will also look at your credit score and discuss how you are working towards credit repair, if needed.

3. How does it work?

 This is a big question, and I'll share more details in the future, but at its core, a RTO buyer commits to entering into a contract for a period of 3–5 years, during which time they will build their down payment, improve their credit, and make other improvements to their mortgage readiness at the same time as they are already living in their future home.

 Once qualified for the program and after a house is chosen, an investor buyer purchases the home for you to live in using their own credit and mortgage. The price you will pay to purchase the home in 3–5 years will be set before this initial purchase. Over the next few years, you'll pay rent on the house towards the mortgage, as well as a monthly premium, which is saved for you towards your down payment. The goal of the program is to have you ready to qualify for your own mortgage with a bank at the end of the initial time period, and to make sure you have a 10% down payment ready to go (via that enforced savings plan). Along with time to build your credit, settle into your new home, and save for a down payment, this program sets you up for future home ownership success.

Ready to see how it would work for you? Send me an email and let me know the best time to chat, or book a call on my Calendly, here. If we've already spoken on the phone but you think it's time for an update, go ahead and book another call - I'd love to hear how things are going.