A ‘rent to own’ program will allow you to buy your own property today. You can make a comfortable stay at your new place by making rental payments. The process of rent-to-own is an easy and inexpensive way to own a property. You have to give the lender, a specific time period and repay the money. It usually revolves around a time period of 3 years. This option comes combined with the lease of the house. It is surely an easy and low-stress deal that you can have for your dream house. The renter has to pay a security deposit or the ‘option fee’ which goes with the purchase price of the home.
There are various benefits of home ownership including security, tax deduction etc. If you don’t have a way to start a down payment on the home, but still you want your payment to go ahead as an investment, then ‘renting to own’ is a brilliant option. The biggest benefit you get is the rate to assemble equity.
Equity growth: The rent payments will go ahead as an investment, as an equity. Each month a small part of your rent payment will impute as a down payment.
Control of the Home: The buyer can have access to the home while paying the rent. You can make changes, improvements even before you actually own the house.
No Taxes, Less Liability: Until the buyer does not buy the home, they are free from paying property taxes. This gives the buyer enough time to prepare for the expenditure of the house. They can also analyze everything about the house and the total cost while they live there, before taking the full responsibility.
Minimal Maintenance: Generally, if there are problems about maintenance that is exceeding a certain amount, money is given to the seller.
The structure of a Rent-to-own program is like that of the traditional rental program. In this, the lessor agrees to hand over the authority of the house to the lessee at the end of the rental tenure.
The rent to own agreements in real estate is created for a longer tenure than other rent-to-own programs, allowing borrowers to make affordable payments.
This process is probably beneficial for both the lessee and the leaser. Now, in a real estate program, the lessee who is about to own the property can avail the benefit of having the landlord be the in charge for basic necessary repair, renovation, and contracting. Until and unless the authority is passed to the leaser, the lessee can claim these necessary changes. Sometimes, the leaser claims the property back if any default is found. In that case, you get your money back and the property is given on lease to someone else.
A rent-to-own program suits all the buyers. However, there are selective people who get the best house deals. Many time people get difficulty in finding the suitable deal. One has to be very calculative and approach a good mortgage agent. Our agents are calculative, decisive, and have the ability to find the right deals for you. They will consider the total cost of the program and know the exact time period in which you can repay the amount. You can also request some necessary changes in the future. This will help you to save enough money to fulfill the other needs and gain your mortgage.
Contact Toronto West Mortgages at 647-501-7032 for any Mortgage related question.