New Home Rent to Own

In traditional home buying, an offer is acknowledged, the purchaser and merchant meet to exchange funds and settle final expenses, and, at the end of the deal, the property and its title change hands. Basically, purchasers utilize a home loan to fund the bulk of the purchase. New homes rent to own

But, at times there is an alternate method to purchase a home. A rent to own agreement likewise called a rent option or a rent-to-own agreement. At the point when purchasers sign this sort of agreement, they consent to lease the home for a certain period before practicing an alternative to buy the property when or before the rent terminates.

How Rent to Own Works

In an agreement of rent-to-own, potential purchasers get the opportunity to move into a house immediately. While many states have their own rules and regulations, and no two rent-to-home contracts are similar, somebody in a rent-to-own agreement regularly leases the property for a certain period (typically one to three years), after which he or she can buy the house from the dealer. It’s not as straightforward as paying rent for a long time and after that purchasing the house, however. Certain terms and conditions must be met, in accordance with the agreement.

Option Money: In a rent-to-own contract, the potential purchaser pays the merchant a one-time, typically non-refundable lease options are called option consideration or option money. With stock options, it gives him a chance to buy a home in the future. It is important to note that some contracts give the right to the potential buyer but do not have the obligation to buy at the expiration of the lease. If he does not decide to buy the property at the end of the lease, then the option just ends.

Purchase Price: The contact will indicate when and how the price tag of the home will be resolved. At times, the purchaser and seller agree on a purchase price when the agreement is marked – frequently at or higher than the present market esteem. In different circumstances, the purchaser and seller agree to decide the cost when the rent terminates, according to the market value at that future point in time. Numerous purchasers want to “secure in” the purchase price if conceivable, particularly in business sectors where home costs might increase.

Rent: During the term of the rent, the potential purchaser pays the seller a predetermined amount of rent, generally every month. In numerous agreements, a level of every month to month rent installment, called a rent credit, is connected to the purchase price.

Maintenance: Depending on the terms of the agreement, the potential purchaser might be in charge of maintaining the property and paying for any repairs, homeowners association fees, property taxes and insurance. Since the dealer is eventually in charge of association fees, taxes, and insurance, the merchant may take care of these expenses.

Buying Property: If the potential buyer chooses to purchase property (or cannot finance) towards the end of the rental period, then the option ends. The purchaser forfeits any assets paid until that point, including the choice cash and any lease credit earned.

If the purchaser needs to buy the property, he or she regularly applies for financing and pays up all required funds. According to the terms of the contract, a fixed percentage of the option price and the payment of the rent can be subtracted from the purchase price. The transaction is completed upon closure, and the buyer becomes a landlord.

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New homes rent to own  – Toronto Mississauga Vaughan Milton

Rent to own house is very similar to traditional house buying. In fact, it’s much simpler and beneficial than that. This deal gives the buyer the liberty to live in a house they want to purchase some day in the future without actually paying the complete cash. Here the rent paid by the buyer reduces the actual payment they have to pay in the future after they get completely satisfied with the property and its environment.

New homes rent to own is very beneficial for the people having a low credit balance and hence do not get any aid from the banks for home loans.You can buy the house once they attain some financial stability. Another benefit is with increasing market prices of the real estate the buyers can get into an agreement with the seller according to which they will have to buy at today’s price. You can even back out if the there is any fall in the price. You can even experience the comforts of your new house without actually owning it. This will make you accustomed to the environment of your new house, your neighbors, and all other problems before it’s too late. If the facilities of the property satisfy you and you make up your mind to buy the property than your cost of shifting and convenience will be reduced.

Paying some of the percentages of the total amount of the property will let you enjoy the equity that renters don’t get.

The sellers too get huge benefits from the deal. They get a long-term tenant having a big stake in the taking care of their property. The nonrefundable option helps reduce some of their risks if the buyer eventually walks.

With so many benefits, you can own a house without creating a hole in your pockets. And being in this field for the past few years we will be helping you in the process of looking the best houses for you.  The houses we choose depend on the taste and budget of the clients. We look for the best houses in your locality across GTA. An average house rent in GTA costs $28,000-$40,000 per year. With such a heavy load on your pockets why to rent a house when you can actually own it.

If you are buying a property for the first time you may not be aware of the procedure you have to go through in order to get the possession of the house. We will be assisting you with the same by providing you information regarding the government programs for the first time buyers. After spending years building the equity in your home we will help you get the most out of it. Our brokers help you compare the agreements of various lenders and loan terms in order to find the best deal for you.

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Rent to own homes -Toronto Mississauga Vaughan Milton

Buying a home is a dream of every individual but in such a competitive world where life gets sandwiched between the basic amenities and the worldly luxuries, it’s hard to buy a house. But renting for the house is again not less than the wastage of the money you have worked so hard to earn. But if you get a chance to own a house of your choice without making a complete payment for it. What if you enjoy the benefits of an owner while you pay the amount similar to the tenants?

Until you want to burden yourself under a heavy loan it’s almost impossible for you to buy a home if you are a mere salaried employee or you have a low credit balance. We don’t want your dream of buying a new house just a dream and hence we have brought a new concept of rent to own homes.

If you want to be sure before buying a house and want to enjoy its equity even before you completely pay for it then rent to own homes will prove to be the best deal for you. It will give you the flexibility to choose the right option. You can even enjoy the advantage of community living and judge if the apartment matches your lifestyle. You can possess the mortgage without undergoing the traditional tedious process.

We want to make this process a very hassle-free one. We inform you the best place for your investment and make your journey of finding the best home a hassle-free one. You can rent for a set period, such as a year, and then when that time is up, they have the option to purchase the home. A portion of the rent is often credited to the sales price or closing costs.

We will be standing for you at every step of the process until you find a completely satisfactory house for you and your family. If you are a real estate investor and looking for a commercial sector to invest in than our experts will guide you the best. We even work with the lenders who are flexible in providing the loans to the self-employed buyers. They do this at low-interest rates. If your tenure with the current lender finishes we will help you get it renewed as soon as possible. We also look for the methods in order to reduce the burden over your shoulders. If you calculate your payments you will have to make one payment every month and that too under low interest.

For buyers who love to wait and watch before finalising on a property, rent-to-own option proves to be a perfect selection. It doesn’t limit them to merely one possibility and offers the flexibility in selecting the right home. Buyers might tune themselves to the market situation. That is, they could continue rent until the prices do not drop. Later when costs stabilise they could decide to buy a property.

Buyers, under rent-to-own schemes, have the advantage of experiencing community living and choose if the housing matches their lifestyle, before taking the plunge.

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Rent to own homes – Toronto Mississauga Vaughan Milton –

Are you looking for a house but running short of money. There are many times when the bank refuses to provide us a loan or gives us low down payment in order to buy a house. “If you are renting, you are just throwing your money away” No wonder how many times you must have heard this but you still do the same mistake. Renting the house you are not sure about often drags us to a big loss.

Rent your own home is a new concept brought by us where you do not have to buy the property until you are fully satisfied. According to this, you will have a pay some percentage of the actual cash prize. When you rent to own, part of your rent goes toward purchasing the home you want to buy at some later date. So instead of evaporating into thin air, your rent is actually laying a foundation for your future — literally.

Rent your own house works best for the buyers who can’t wrangle a mortgage the traditional way. This concept works on low credit and lows down- payments. The documentation is also done in a hassle-free manner. And the most important benefit of this system is that you can make yourself sure about the property you want to buy by living there for some time and paying just a part of its total cash value. With time when your bank accounts have sufficient money, you may buy the house. In this manner, it will be beneficial for both the buyer and seller.

Rent-to-own properties are also the ultimate possibility for buyers or tenants who are unable to qualify for home loans because of poor credit scores. They can use the amount of their rent-stay to arrange for finances or rectify their credit scores.

Often times the seller has a better chance of getting the full asking price and a higher monthly rent payment for the home on a rent-to-own home. The nonrefundable option in the agreement gives the seller the liberty to keep the money deposited by the buyer even if the buyer leaves the house due to any reason. The renters are usually hard on a property since they don’t own it but renting your house to someone who has a long-term interest in your house will prevent you from these damage related problems.

We provide you the best services by arranging for the best houses that can try out and rent for. The houses we look for you depend upon your investment ability and your social and environmental requirements.After finding you the suitable house we introduce you to the seller to have a direct conversation between the two. This is also helpful in order to decide an agreed upon sale price. The agreement will also include the tenure for which you will be provided the property for.

Working in the field for past 15 years we know how to fulfill your dreams of buying a home where you can spend some quality time with your family. Give your family an amazing experience with our experts and their perfect options for your family.

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rent to own

Why Rent to Own?

Excellent question! Rent to Own is an excellent program that was developed to help individuals like yourself that may not be able to qualify for a conventional mortgage today. There could be several reasons for why you may not be able to qualify for a mortgage, but the most common reasons are low or bad credit, not enough money for a down payment, haven’t had steady income for 2 or more years, etc. Not to worry, because we can help!

Rent to Own is a program that gets you ready to be qualified for a conventional mortgage, while holding the price of the home for you until we get all your affairs in order. The terms range from 2-4 years ideally, but can go up to 5 years if needed. Throughout the term, your rent does not increase, your landlord will never decide to sell or displace you, you have the luxury of treating the home like your own, you have the freedom to decorate the home, to have pets, to sub-lease or rent the basement, and to make any changes that will increase the value of the home.

Below are a few differences between renting and Rent to Own



Rent to Own

Rent Increases



Landlord can sell

Permission for small changesYes


Sub-lease or Sub-letNo


Changes for improvementNo


Now, imagine for a second that you are paying $2000/month in Rent. In 3 years, you have basically paid over $72,000 in Rent without getting anything back. I say over $72,000 because the Rent generally goes up every year. $72,000 is a very large amount to have wasted away, without any sort of return or appreciation on this money.

With Rent to Own, you lock in the agreed upon price today, so when the market value for the property goes up in 2-4 years, the appreciation is your profit. It’s basically equity that gets built into the home, and you are eligible for that appreciation 100%!

Imagine, someone gave you an opportunity to buy a house today, with what it was valued 3 years ago….would you say that’s an unbelievable deal? That’s exactly the option that Rent to Own provides you!

The qualification is easy, we look at 3 different things: Income, Credit and Down Payment.

For the process to work flawlessly, you need a minimum of 4%-5% as a down payment of the property value. Meaning, if a property is valued at $300,000, then you will need around $15,000 as a down payment. The reason we ask for this down payment is simple, we want to qualify you for a mortgage at the end of the term. Simply put, you cannot buy a house with 0 down! You can’t even buy a pair of shoes with $0, and this is a home we are talking about…one of the BIGGEST investments of your life!

With the initial 5% put into the property, we save a portion of the rent that you pay every month and put it towards building a bigger down payment. Our goal is to get you as close to 10% of the property value as a down payment, so that we can qualify you for a conventional mortgage. Simple!

As far as credit, even if you have no credit, bad credit or okay credit…we provide a full credit assessment with a customized credit mentoring program and continued and on-going credit coaching. All of this is free of cost to you!

Ready to get started? Perfect! Call us right now and let’s set up an appointment to meet!


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Rent or buy? How home prices and high rents affect that equation

The volume of home sales in April touched a seven-year low for the month, the Canadian Real Estate Association said on Tuesday. And home prices in most markets are stagnating.

But if Canada no longer looks like a sellers’ market, buying a home hasn’t exactly become a cakewalk. Unless you’re shopping for a detached house in the country’s two priciest cities, you probably haven’t seen home prices decline.

Renting isn’t cheap either. Forty per cent of the 4.4-million Canadians who have a landlord rather than a mortgage spend over 30 per cent of their pre-tax income to keep a roof over their heads. And things could get worse if rising interest rates and tougher mortgage rules force more Canadians into the rental market.

So, what’s the least bad option in this era of stalling home values and sky-high rents: being a tenant or a homeowner?

Common wisdom has it both ways when it comes to the rent vs. buy question. Many people argue that renting is a waste of money: You’re not building equity in your home and your housing costs will never go down.

Others argue that since rent is usually much cheaper than the carrying costs of owning a comparable home, you can build wealth by investing what you’re saving by not having to pay for things like property taxes and home insurance.

Unfortunately, both arguments can be wrong, depending on your individual situation and the conditions of the market. Crunching some numbers will usually give you a better idea of what renting or buying entail in your specific case.

Rent or buy? The case of a Toronto semi

Toronto is a great place to test the rent vs. buy math. When it comes to larger and more expensive homes, the real-estate craze of the past couple of years has dissipated. At the same time, rents are among the highest in the country.

Let’s look at the example of a three-bedroom, two-bathroom semidetached house, what many would call “a starter home.”

According to data provided to Global News by Toronto real estate website, the average asking price for such a home in the Greater Toronto Area (GTA) is around $744,000. With a 20 per cent down payment of $148,800, and a five-year fixed rate mortgage of 3.49 per cent, the monthly mortgage payment would be $2,969, according to the online mortgage calculator provided by rate-comparison site RateHub. Add in property taxes, home insurance, utilities and home maintenance costs, and you’re looking at spending $3,800 a month at least.

On the other hand, the average rent for a comparable property is around $2,450 a month in the GTA, according to Bungol. That’s a difference of a whopping $1,350 in monthly costs compared to being a homeowner.

But what does that mean?

Global News run the numbers through the online “rent vs. buy calculator” provided by The Measure of a Plan, a Canadian financial planning site. If you assume that home prices will stay relatively flat for the next 25 years, it doesn’t make much of a difference whether you rent or buy that Toronto semi.

A tenant with an initial investment portfolio of $151,800, equivalent to what the buyer would likely spend on the down payment and purchase transaction costs, would end up with around $1.35 million 25 years down the line, assuming an annual return on investment of 5.5 per cent before inflation.

The homebuyer would end up with roughly that amount in home equity.

Rent or buy? The case of a Toronto condo

When you look at small condos in Toronto right now, those who can afford to buy still seem to have a clear advantage.

The average list price for a two-bed, one-bath apartment in the GTA is around $412,000, according to Bungol, which works out to roughly $2,000 in mortgage payments and $2,650 in carrying costs. Renting a comparable unit, on the other hand, will cost you around $2,330 a month. That’s a mere $320 difference in monthly carrying costs.

Even “a conservative 2 per cent annual property appreciation assumption results in almost $700 of gain per month, over time. That’s quite a bit more than [the] rental savings,” said Robert McLister, founder of rate-comparison site and mortgage planner at

“In most urban markets, it’s hard to beat buying long-term when your rent payment is higher than your mortgage payment for the same property,” he added in an email to Global News.

WATCH: Here’s what millennials couples can afford under the new mortgage rules

But small towns where few homes are available for lease can also be a tough market for renters, said Jason Heath, a fee-for-service financial planner and managing director at Markham, Ont.-based Objective Financial Partners.

In communities where the supply of rental properties is limited, it’s not uncommon to see yearly rent payments equivalent to between 7 and 10 per cent of the market value of a comparable home.

Generally, if a year’s worth of rent adds up to less than 4 per cent of the market value of a similar house, you’re probably looking at a renters’ market. If yearly rent works out to 5 per cent or more, buying is more likely to be the better option financially, Heath said.

Still, there are all sorts of variables that can skew the calculation. For example, the faster home prices rise, the harder it is for renters’ investment returns to keep up.

On the other hand, you won’t be building much wealth as a homeowner if you keep tapping into your home equity to borrow, Heath noted.

And if you have a generous workplace pension with your employer matching contributions, renting and being able to make larger monthly deposits into your retirement savings account might make more sense, Heath added.

The 4-per cent rule of thumb is only a starting point, he said.

“It’s important just to know when to ask more questions.”


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Home Sales Jump 30% in May 2018

GTA home sales grew 30 per cent from April 1-15 to May 1-15, according to data from a report.

Condo sales are particularly high, rising 48 per cent month-over-month for the first two weeks of the month. In comparison, detached homes saw a 21 per cent month-over-month increase.

The GTA housing market has remained relatively cool so far this spring, activity could be starting to heat up in May.


The market continues to be a cool relative to last year, as both sales and new listings are down from 2017’s record heights.

“In the [GTA], the sales-to-new-listings ratio increased from 35 per cent last month to 39, reflecting continued, though slightly tighter, buyers market conditions,” reads the report. “However, in the city proper, the ratio rose from 38 per cent to 45, making the move from a buyers’ market to balanced.”

A ratio of between 40 to 60 per cent is considered balanced, with readings above and below indicating buyers and sellers markets, respectively.

The report uncovered a more subtle sign that the market could be warning — early indications that bidding wars could be starting across Toronto.

“As spring sales start to increase, terminology found in MLS listings reveals that bidding wars in the 416 region have returned,” reads the report. “A query for common terms which usually indicated bidding wars are expected, reveals 197 active Toronto house listings including the wording ‘acting offers’ and 209 with ‘register by.’”

Earlier this month, Toronto Real Estate Board president Tim Syrianos predicted that the market would begin to see an uptick in activity heading into the summer months.

“A strong and diverse labour market and continued population growth based on immigration should continue to underpin long-term home price appreciation,” he wrote, in a statement.

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Toronto sees a surge in purpose-built rental development

After decades of slow or almost no growth in new purpose-built rental construction, the Greater Toronto Area may be in the middle of a mini-surge as a range different players are finding creative ways to keep some of the region’s land from turning into another new condominium.

With one of the tightest rental markets in the country, one of the most expensive home ownership markets and a booming population, it should be no surprise that the Toronto region has pent-up demand for rentals. What’s new is that the math for builders is finally starting to make sense to build new rental – particularly in the luxury and premium rental market – which is leading to an uptick in supply in levels not seen since the mid-1990s.

According to data from real estate analysts Urbanation Inc., six projects and 1,723 units began occupying in 2017, but it projects that in 2018 nine projects equalling 2,669 units will be delivered.

There are also 162 proposed rental projects across the GTA, which could add up to 34,054 units. Of that, approximately 27,000 are in city of Toronto, and almost 17,000 are even more centrally located in the boundaries of the old city of Toronto.

The region never stopped building rental housing, but as a 2017 Ryerson City Building Institute report noted, its only in the past two years that the market has seen more than 2,000 rental construction starts per annum since 1994.

“New market rental is badly needed in the downtown,” said Cary Green, chairman of Greenwin Inc., which just announced that it won a request-for-proposal to build 700 units of rental as part of the Provincial Affordable Housing Lands Program in exchange for keeping 30 per cent of the building affordable for 40 years. The site, near Bay and College, is the kind of downtown land the company could only dream of acquiring in the open market. “It’s very challenging today – we’re competing with the condo market. They can pay more money for the land than the rental market has been able to in the past,” Mr. Green said.

The competition between condos and renters for land is why some of Canada’s biggest pension funds and insurers are teaming up with the the region’s biggest landlords to squeeze new rental buildings onto their existing properties.

“Up until the mid-2000s, a lot of the landlords or owners would grow by purchasing existing rental assets,” said Drew Sinclair, Principal at SvN Architects and Planners. “Now, the cost of building is less than the cost of buying. That’s a really dramatic transition.”

Earlier this year, Minto Capital, a part of the builder and landlord Minto Group, announced one its first new-build rental buildings in years was nearing completion in Oakville: 1235 Marlborough is a 14-storey tower on the grounds of its existing Marlborough complex in the College Park neighbourhood at Trafalgar and Upper Middle Road.

“We’re catering to two markets: students with a roommate or downsizers that are coming from larger homes and can’t envision their lives shrinking into a one bedroom,” said Ben Mullen, vice-president of asset management, who said the building has 144 units, 97 of which are two-bedroom (starting at $1,675 a month) and 46 are three-bedrooms (starting at closer to $2,000).

Mr. Mullen said that major landlords such as Minto have two options to increase the value of their portfolios: “reorientation,” which means renovating old buildings with more attractive modern amenities to enable charging higher rents; or intensification, which means squeezing a new building onto the existing land, which also lets it charge higher rents. “We are seeking rents that are greater than our existing building,” he said. “ This is the only one that would fit at Marlborough. We have a couple other we’re working on in the GTA that are very similar.”

Mr. Sinclair, whose firm has consulted on planning and design for many of these landlord companies, said there are 2,700 high-rise apartment buildings in the city of Toronto alone, the majority of which are “tower in the park” configurations ripe for intensification. “There’s a huge amount of potential for a significant amount of rental housing to come online,” he said.

But the ability to charge premium rents in the GTA is also what’s drawing in new players, such as condominium builders Camrost Felcorp Inc., which added a luxury rental building – 101 St. Clair – to its redevelopment of the Imperial Oil headquarters.

The market they are after is “that Forest Hill homeowner who doesn’t quite want to make the full commitment. 101 St. Clair is the toe in the water to see if this lifestyle is right for them,” said Joseph Feldman, director of development at Camrost. He said 101 St. Clair is about 50-per-cent leased, but while one-bedroom suites start at $2,295 a month, some of the larger 1,500 or 2,000 square foot units hit $5,500, or even $20,000 a month for its highest-end pads.

“We are hot on the market, we believe, in the product that we build. We’re on the verge of pulling the trigger on another purpose-built [in the company’s new community in Leaside], “ he said. “The joke in our office is that in the past 41 years we’ve built 11,000 units – imagine if we kept all of those as rentals.”

While it might not seem like high-end units perform a useful role in solving the affordability issues that rental usually addresses, Altus Group chief economist Peter Norman suggests a different way to think about it. “The city itself is 650,000 units strong. That’s the size of the rental stock in the GTA. If you don’t provide at the high end, it’s a cork in the bottle; nobody can move up.”

That said, the luxury market might not be able to address the growing region’s needs.

“If we’re starting to build more housing, more rental, there is a bigger opportunity there than if we’re just focusing on the luxury market,” said Graham Haines, research and policy manager for the Ryerson City Building Institute, one of the authors of a report that suggested the GTA needs to add 8,000 new purpose-built rental units a year until 2041 to keep up with population demand. If the majority of new rental units go for premium rates, “Obviously, our lowest income people are pushed further and further down the property ladder,” Mr. Haines said.

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BMO latest Canadian bank to hike mortgage rates

Bank of Montreal has raised rates on its posted mortgages, joining a number of other Canadian big banks as they respond to rising bond yields.

Effective Thursday, BMO raised the rate on its five-year fixed mortgage to 5.19 per cent from 5.14 per cent.

But rates on its entire slate of fixed-rate mortgages also rose. For example, the rate for a one-year mortgage rose to 3.44 per cent from 3.29 per cent – an increase of 15 basis points. The rate for a 10-year mortgage rose to 6.5 per cent from 6.3 per cent.

The changes were initially reported by RateSpy. BMO confirmed the moves.

While home buyers can usually negotiate rates that are lower than the banks’ posted rates, the changes nonetheless highlight the fact that borrowing costs are rising as markets respond to a confluence of changes: Global economic growth is picking up steam, inflationary pressures are building and central banks are raising interest rates.

Although both the Bank of Canada and the U.S. Federal Reserve held their respective rates unchanged at their latest monetary policy meetings, financial markets expect rate hikes later this year.

The changes from BMO follow similar changes at four of Canada’s biggest banks, after Toronto-Dominion Bank led the pack with rate increases last week, followed closely by Royal Bank of Canada, National Bank of Canada and Canadian Imperial Bank of Commerce.

Rising posted rates come at a time when Canada’s housing market is adapting to regulatory changes designed to slow home-price appreciation in particularly hot markets – notably Toronto and Vancouver. Among these changes are stress tests, designed to ensure that home buyers can handle payments if mortgage rates rise by 2 percentage points, potentially making it more difficult for cash-strapped or indebted Canadians to buy homes.

The changes may be showing up in home-buying activity. Sales data from the Toronto Real Estate Board (TREB) showed home prices in the Greater Toronto Area in April were relatively unchanged from March, but are down 12 per cent from last year. In Vancouver, residential sales last month fell to their lowest level in 17 years.

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