Most of us aspire for own homes, but what percent of the population really owns a home? Won’t exceed 40%. Are you among the 40%? If not, you can be. The concept of rent own homes Brampton is there only so that people with lower finance availability can purchase a home, at the end of a certain pre-decided period. It is different from a mortgage because the sale does not take place at the beginning of the contract and there are added benefits in rent own home contracts like- you don’t need a good credit score, like in mortgages, to qualify for a rent own homes Brampton agreement and you don’t need a lot of cash for down payment, instead a small percentage of the pre-decided purchase price is by default the down payment etc.
The following are the important features of a rent to own homes Brampton contract:
1. The buyer gets to move into the house right away
2. The terms and conditions of the contract are decided in the beginning of a rent to own home contract and before ANY money changes hands. They include the period of rent, the rental, the down payment, the lease period etc.
3. The buyer is responsible for the maintenance of the home.
4. The down payment in a rent to own homes Brampton contract is also called ‘option money’ and is generally not refundable but is applied as down payment towards the same home for a mortgage.
5. The sale takes place once the rental period is over and your credit has improved. If needed, you can extend the term (subject to approval).
6. If you are not able to make your monthly payment, you have the option to sub-lease the property.
Rent to own home plans is good for buyers who are not able to get traditional bank financing. There is no risk of collateral as the property is in the name of the seller till the last payment. The buyers can also walk away from the ‘option’ contract i.e rent to own home contract if they find anything unusual or comfortable while residing at the time of rent. The rent to own home market is a little more complicated than the real estate market in order to find the best properties, terms of lease etc and hence a mortgage broker or an agent may be the best option at any point of time.