Innovative Property Solutions' Rent to Own Program

Innovative Property Solution’s Rent to Own Home Purchase Program helps Canadians become homeowners without having to meet the typical requirements of the conventional lending institutions. Whether an individual cannot qualify for a mortgage due to credit issues, or simply not enough of a down payment, IPS has specific programs to help Canadians fulfill their dreams of owning their own home.

 
An Explanation of a Rent to Own Home Purchase

A Rent to Own home purchase is a lease agreement with an opportunity to buy the property at the end of the lease term. The purchase price is pre-determined at the initial signing of the lease and is secured with a non-refundable “option consideration” (deposit) from the renter. The option consideration will be put towards the purchase price at the time of sale. This is a down payment to aid the tenant/buyer in the mortgage qualification process when ready to purchase at the end of the lease term.

Advantages of a Rent to Own

The Rent to Own program is designed specifically for those who no longer want to keep contributing money to rent, but cannot currently qualify for a mortgage; whether it be due to hiccups in their credit, no credit or not enough of a down payment. Our program will get you into your new home right away and assist you in building your credit, while saving for a down payment. Our program allows the tenant/buyer time to obtain the proper financing available for their situation.

Qualification is simple and your purchase price is guaranteed. This means you are able to reap the benefits of equity appreciation right away. There are no unexpected changes to your monthly payments as your payments are fixed for the term of the lease agreement. You will be using very little of your own money to live in the home that you want right away and best of all, IPS pays all the taxes and insurance.
Think of this. While you live in the property, you have complete control: you can renovate, fix, and improve the property raising the value because you are the essential homeowner. Through the changes you may make to the property, by the end of the lease term the property may be of higher value than the agreed purchase. Hence, you’ve fully taken advantage of equity appreciation.

Requirements for an Initial Deposit

The minimum initial deposit that is required is 2.0 - 5.0% of the agreed purchase price of the home. If you do not have the minimum initial deposit saved, IPS can arrange a monthly payment plan to help you accumulate your initial deposit.

Once you are approved for the program, IPS requires an “Option Consideration” deposit for the purpose of confirming your commitment. This deposit contributes to the overall economics of your rent to own situation. The amount of deposit depends on the cost of the home you have chosen and is given back to you as a credit at the end of the lease term.
Your monthly payments are made up of the rent portion and the “Monthly Option Credit” payment. The “Monthly Option Credit” will add up over the term of your agreement and contribute to your overall equity in the property. These credits and your initial "Option Deposit" are then put towards the purchase price as a down payment for you property.

IPS 3 Year Rent to Own Scenario:

 

Purchase Price of Rent to Own Home - $300,000

Initial Deposit (3% of the Agreed Purchase Price) - $9,000

Monthly Cheque # 1 (Fixed Rent) - $1,600

Monthly Cheque # 2 (Monthly Credits) - $200

Total Monthly Payment - $1,800

 

 

Lease Term - 3 Years

 

$9,000 (Initial Option Deposit) + $7,200 (Monthly Credits X 36 months) =  $16,200 which is 5.4% of the Total Purchase Price of the Property

Note: This is an example IPS Rent to Own Scenario, your monthly payments and credits will vary depending on your own situation.

 

 

 

Options to Consider at the End of the Term

At the end of your three (3) year term or even a shorter period of time, IPS wants to see you qualify for a mortgage and take full ownership of your property. It is only a win-win situation when you ultimately obtain full ownership of your home and fulfill your goals. In some circumstances a situation may arise where financing cannot be arranged. IPS works closely with clients to find a solution where all parties are happy and ultimately you have homeownership.

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