Purchasing a home is a milestone in many individuals’ lives. Not only is it a mark as coming of age but it is a major asset to help you build financial security. The most reliable form of wealth comes from owning real estate, but what if you can’t get approved for a mortgage? This is a realization that many people are dealing with today. Banks are constricting the amount of loan and mortgage applications due to the recent recession and tightening of the mortgage approval process. Now, many people are left in the dark about how to reach the goal of home ownership.
If you have no credit rating or bad credit, not enough finances for a large down payment, are new to Canada or are self-employed, you might face these obstacles. Luckily there are solutions to the problem of obtaining a traditional mortgage. The real estate market relies on people consistently buying and selling homes. For those of you who fit into the aforementioned categories, the lease to purchase option is just for you.
Many of us come out of school, land a job and hope to purchase a home down the line. We can become side tracked due to a variety of reasons, or because of credit, and getting back on track can seem like a nightmare. Some of us come into hard times and have had to declare bankruptcy or have fallen into a bad credit rating. The lease to purchase homes option allows us to work through financial hardships and be on our way to home ownership.
Your first step is to call a reliable rent to own homes company like Sandstone Management in Canada. They go through your situation and finances with you and set a budget and timeline for your lease to own. A realtor helps you find the ideal home within your predetermined buying price. Sandstone checks the home for fair value, structural soundness, defects, etc., to be sure the home is a good investment. You pay a small down payment (usually 5%) and reasonable monthly lease payments for a short fixed term that lasts 1 – 3 years. During this time, a portion of your payment is set aside to make up a small down payment. When the fixed term is over, you will apply for a mortgage on the same home with your new found equity and more favorable credit rating that their mortgage counselors help you achieve. Since the price of the home is pre-determined for after the lease period, you benefit from any rises in the market and any work you put in. You can start building equity before you even own the home!
The lease to own home Toronto and other parts of Canada is the answer for those who don’t qualify for traditional mortgages. Talk to an advisor at Sandstone Management today at (905) 235-0841 and learn about how you can become a home owner.
Owning a home is often a major goal in life for many people, and it is often the most important investment they will ever make. For many people, obtaining approval for a mortgage is quite feasible, especially if they have a good job and have good credit. However, those who have bad credit may not have it that easy. More often than not, those with bad credit are not able to secure a mortgage for a home. For this reason, Toronto lease to own homes contracts are available to people with bad credit, in order to get them on the track to finally owning their own home.
What is a Lease to Own Homes Contract?
Ontario lease to own homes contracts enable those with bad credit to realize their dreams of owning a home. The contract is assigned a set period of time, and the price of the house is pre-determined and agreed upon at the start of the contract. A portion of each monthly payment – or “rent” – goes towards the down payment of the home and equity of the home. This allows the lease to own home buyer the opportunity to build equity and improve their credit score by making their affordable monthly payments.
Toronto lease to own homes contracts require that the home buyers pay the monthly payments on time every month, which is necessary to build up good credit. In addition, the home must be taken care of, and any minor repairs need to be addressed. Usually, a 5% or higher down payment is also required.
How Lease to Own Homes Contracts Can Benefit You
The most obvious and biggest benefit of Toronto lease to own homes contracts is that even those with bad credit and poor financial records can still find a way to get approved to own a home. Instead of having to get approved from a lender for a traditional mortgage, or come up with a large down payment, these home buyers are able own a home and build equity and credit at the same time, and much sooner than they would otherwise. (In times of rising home prices, this makes more sense than ever.)
Go With a Reputable Company
Reputable companies, like Newmarket based Sandstone Management, should be your first stop when applying for a lease to own home contract. They have experience with these contracts, and can walk you through every step of the way – helping you avoid first time home buyer mistakes. They will get you in the home of your dreams so you can start earning equity and building financial security.
Get more information on how to own a home through a Toronto lease to own home contract by getting in touch with Sandstone Management today!
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