Rent to OWN / Lease to OWN - Frequently Asked Questions

Choose Your Own Home to Rent to OWN in Calgary, Airdrie, Red Deer, Penhold, Sylvan Lake, Lacombe, Okotoks, Edmonton and more!
Rent to OWN - Proud New Homeowners
How Does Your Lease-to-OWN / Rent-to-OWN Program Work?
We will rent you the home of your choice (that you select with our realtor) and grant you the exclusive right to purchase it at a later date. Our buyers love this because it gives them time to save up for a larger down payment, time to clean up past credit problems, time to sell another home, and also time to try out the neighborhood before buying. We are obligated to sell to you, however you are not obligated to buy. A portion of your monthly lease payment and 100% of your initial Option fee is credited towards the purchase price of the home.

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How Much of an Initial Payment Do I Need?
Your initial Option fee is credited back to you when you purchase at the end of the term. Within a major city that has strong re-sale demand, you should budget for at least 6% of the purchase price (minimum $20,000) however the more you are able to pay now, the lower your monthly payments will be and the easier it will be for you to qualify at the end of your term. The actual amount required will depend on the property, location and the amount of your monthly payments. In every case 100% of your initial Option fee will be credited directly towards your future purchase of the property. Remember, we want you to become a homeowner within 1 or 2 years, hopefully sooner, which is why it's in your best interest to build off a strong solid foundation. Unfortunately, starting off without a sufficient initial payment would not make it possible for us to achieve our goal - which is for you to qualify for a mortgage from a bank at the duration of our program. That is our only goal; helping you qualify for a mortgage so you can own your own home! We can offer you many options, and we will always do our best to work with whatever funds you have available. Depending on the property and your personal credit situation, we may accept a payment schedule over a number of months. Each application is reviewed and approved on an individual basis.

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What Methods of Payment are Accepted for the Initial Payment?
We will accept any form of certified funds (certified cheque, bank draft or money order) for the initial Option fee. At this time we are not able to use your RRSP (through the Home Buyers Plan) as your initial payment to us, however, you may be able to use your RRSP towards your down payment at the end of your term when you complete the purchase.

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Can I Use Borrowed Funds for my Initial Payment?
Yes. Unlike most lending institutions, we accept borrowed funds for closing. If you have a close friend or relative willing to lend you money, you can use that in our program. You are free to choose where you get your initial Option fee from.

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My Credit is Horrible - Can I Still Qualify?
Yes. It really depends on your individual situation. We are not like most financial institutions; we believe in providing everybody with the opportunity to own their own home. All we ask is that you are honest about yourself when you provide us with your credit information. We measure our success on the number of people we are eventually able to assist in qualifying for a conventional mortgage.

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I'm Self-Employed and/or Commission-Based - Can I Still Qualify?
Yes. Our qualification process is very flexible and takes into account that your income may not always be guaranteed.

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Can I Rent Out the Property?
Yes. You may place a tenant into the property if you wish. Please note: you will remain fully responsible under the terms and conditions of the lease contract that you sign with us. You will also be responsible for all maintenance, repairs and damages that may occur.

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Who Pays for the Regular Maintenance of the Property?
We treat you as a Home Owner, which means that you are responsible for maintaining the property. You will be the direct beneficiary of any improvements when you purchase, as they will increase the value of your investment. As you will benefit from any improvements you make, you will also be responsible for your home's maintenance. Please remember that all homes require regular maintenance, so please ensure you budget for this when considering the monthly payments.

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Who Pays for Property Taxes, Building Insurance and Condo Fees?
We do. We pay for the property taxes, building insurance and condo fees (if applicable) to ensure they are always paid in a timely matter as this protects your investment.

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Is the Purchase Price of the Home Negotiable?
No. The purchase price is a fixed price based on a conservative estimate of the future value of the property at the end of your lease term and is guaranteed for the duration of your lease. This means that regardless of how much the home appreciates in value over the term of the agreement, your purchase price will not change.

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Are the Monthly Payment Terms Negotiable?
The monthly rent can be reduced by increasing your initial payment. We review and approve each application on an individual basis.

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How Do Your Payments Compare to Traditional Mortgage Payments?
Great question! With all factors considered, our all-inclusive Rent to OWN payments are actually lower than paying a 5% interest rate mortgage. See for yourself by visiting Rent to OWN : Explained

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Can I Choose any Home I Want for the Buyers Selection Program?
Yes! However, the property must be considered a readily marketable residential dwelling located in a market with demonstrated ongoing re-sale demand. We will work with you to avoid areas where properties are not appreciating. We want to ensure you're in a good neighbourhood near good schools and amenities where property values steadily increase. We are making an investment in you as well as the home you choose so we will help you every step of the way. Suitable properties should have an effective age of less than 10 years with a minimum 45 years remaining economic life, as determined by an appraisal report. You will also have the home professionally inspected prior to purchasing to make sure that your home is in good condition and free of hidden problems in all major areas (roof, electrical, heating, cooling, and foundation). The cost of the home inspection, which is to your benefit, is your responsibility. We will help you to arrange for a home inspection to be performed by an experienced, knowledgeable and licensed home inspector.

Although it is possible to Rent to OWN almost any home - the majority of our clients choose to rent to own homes in the Central Alberta region, otherwise known as the Calgary-Economic Corridor. This would include Calgary, Airdrie, Red Deer County (Red Deer, Sylvan Lake, Penhold), Lacombe and Edmonton. There is a population minimum - so please ask if you're unsure if your desired City or Town would qualify. If we are not currently able to approve your specific town, we may know someone else that can help you.

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What if I Can't Afford the Monthly Rent and Option Payments Right Now?
Your monthly rental costs are roughly the same as you would pay on a new mortgage with all costs considered including property taxes, insurance and condo fees (if applicable). We want to ensure that we place you into a house that you can afford so you can ultimately qualify for your own financing at the end of your lease and take over these payments yourself when you purchase the house from us. We would not want to place you into a house that we felt you could not afford which is why we will work closely with you throughout the process to help you find an appropriate house.

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Rent to OWN - Proud New Homeowners
What Happens if I am Unable to Make my Monthly Payment?
We require that you honour all obligations under the terms and conditions of our Lease-to-OWN / Rent-to-OWN contract. You are responsible to pay the correct amount on time. If you fail to do so, you will be considered to be in default under the terms and conditions of the contract. No different than the bank - if you are in default for a period of more than 30 days we reserve the right to immediately commence legal proceedings to recover and secure our interests in the property. If this happens, you may lose all equitable interest in the property, including but not limited to: all option fees and monthly option credits. We will also be entitled to recover any and all legal costs that we may incur. We know this sounds serious, which is why we would like to ensure that you are fully aware and clearly understand both our and your rights and obligations under the terms and conditions of the contract before you sign.

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What Happens if I Do Not Want to Buy the House at the End of the Lease?
We have many different options:
  • If you need more time we can extend the lease longer.
  • We can help you secure financing, perhaps even be the bank for you.
Another option is you can choose to walk away and owe us no more money, however the credits you have accumulated towards your future down payment are non-refundable. There would be significant costs involved to sell a property that was purchased specifically for your benefit, including (but not limited to) realtor commissions, mortgage repayment and payout penalties, interest and holding costs, investor payouts, marketing, etc. In most cases the money you have paid would not even be sufficient to cover these costs. Keep in mind that we are making a significant investment in you, so we want to deal with committed people and we will work as hard as you to help you buy this house!

Want a closer look? Curious to where the money really goes?

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How Soon Can I Move into My New Home?
The entire process usually takes anywhere from 6-8 weeks from start to finish. It may take 1-2 weeks initially to complete the full approval process which includes designing a program specific to your individual needs. You will then go shopping for homes with our realtor - the time it takes is up to you and also depends on the availability of suitable homes for sale. Once you have found your dream home, we will then place an offer to purchase. Once our offer is accepted, there is generally a 2 week condition period where we ensure the home is in great shape and free of defects. After all conditions have been met, expect another 2-4 weeks to close before you receive the keys to your new home!

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I'm Ready Now to Rent to OWN, What is the Next Step?
The qualification process for our Rent to OWN program is simple. All we need is your application to get started - you can APPLY NOW using our online Application Form. We will then contact you within 1-2 business days once we have had time to review and process your application.

It really is That Easy!

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Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world - Franklin D. Roosevelt (1882-1945)
Take the First Step Towards Home Ownership ... Rent to OWN - APPLY NOW
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The MOST Trusted and Sought-After provider of Rent to OWN Homes in Alberta: Calgary, Airdrie, Red Deer County (Red Deer, Sylvan Lake, Penhold), Lacombe, Okotoks, Edmonton and more!

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