How Does Rent-to-Own Work in Ontario?

A Rent-to-own program helps homebuyers by providing the chance to be proactive in their purchasing process. In a rent-to-own program, a portion of the rent that you pay as a tenant goes towards the down payment for the purchase if you buy the home down the line. By doing this you can buy lots of time to accumulate a sizable down payment amount needed to secure a traditional mortgage in the future.

The buyer and the landlord should enter into two agreements: the rent-to-own “option to purchase” agreement and “lease agreement". A strict due diligence process should be carried out to iron out any future complexities. Be cautious before charting out the program, place emphasis on every possible detail and get sound advice before signing a rent-to-own contract.

At Mortgage Loan Ontario, our unique Rent-to-Own program gives homebuyers an alternative that would be highly helpful, when their bank says “no”!

You can move into the house of your dreams today and own the property in the future. Get in touch with us now.