What Happens After You Finish the RTO Period?

You might be wondering how the Rent to Own Process comes to an end after the three to five years most buyers spend in the program.

The end goal of RTO is always to have you qualify to purchase the home—in your own right—following the program’s completion. To facilitate that, you will have negotiated an exit sale price with Clover Properties and your investor buyer before you entered into the original contract.

Thanks to that prep, you’ll know exactly how big a mortgage you’re looking to qualify for and what the purchase price of your home is.

You’ll also be heading to the bank with a 10% down payment—the fruits of your savings labour over the past few years. This is why we have our RTO clients contribute an amount over and above their minimum payment each month.

This forced savings plan is returned to you at the end of your RTO period, along with your initial down payment. This increased down payment will make you a more attractive customer to the major banks and might decrease your monthly payment or even your interest rate.

Once you qualify for your own mortgage with an ‘A Lender’ (major bank) and purchase the home from your investor buyer, you’ll become a home owner just like any other. At this point, it’s up to you whether you stay in the home, rent some or all of it out, or even sell it.

Some of our buyers find their situations change over the years so they eventually sell their homes in order to move to a new town or larger property—just like any other buyer does from time to time.

Since you set your purchase price 3-5 years before you buy your home, with any luck you’ll be going into this next phase with a bit of extra equity. This might happen if your local housing market does well, or if you make some improvements to the home while you’re doing RTO and add some improvement into the value of your home—all of that equity is yours to keep (or use) as you see fit.

Get started by booking a call today!

I can’t wait to chat with you about taking your first steps towards RTO.