• Rent To Own strategies offered by a professional, licensed, bonded and insured REALTOR ┬«.
  • Full MLS exposure included for all Rent To Own property sellers.
  • My brokerage is Sage Executive Group Real Estate the Okanagan's BIGGEST independent brokerage.

Rent to Own Buyers Frequently Asked Questions

Q. How do I view your available properties?

A. We have three options which includes the inventory on our website, we can partner you with an investor to purchase a property on www.MLS.ca that offers thousands of properties to choose from and/or we can approach private home sellers to help them understand the benefits of offering a rent to own option on their property.

Q. What are my property rights as the tenant?

A. You will have the right to treat the home as if you own it right from day one which includes the right to have pets, to paint, to improve on the property, to add a pool etc. If major modifying of the property is required we would require an approval of the investor or the home seller at the offer to purchase stage of the negotiations. Any modifications you make must of course be done to code, by licensed contractors and approved by the city if permits are needed.

Q. How much is needed to move forward on a rent to own option on a property?

A. The initial amount needed is called the "option to purchase amount" and starts at a minimum of 3% of the mortgage value of the property. The higher your deposit the higher the likelihood that we can partner you with an investor or home owner to rent to own their property. Real Estate investors and home owners typically want to see at least 5% and prefer if you have upwards of 10% or more. With less than a 5% deposit we can generally make offers on properties in our inventory program and from sellers with homes that are vacant and have been on the market for an extended period of time such as 90 days or longer.

Q. Is it okay for a family member and/or friend to provide me with the deposit?

A. Yes friend(s) and /or family are able to gift you the deposit. In some cases you can obtain a loan and/or use RRSPs. The mortgage broker will advise on these options once you have met with us, decided you want to move forward, and provided a credit application.

Q.When is the initial option to purchase amount due?

A. This will be due when we have found a property you are interested in and at the point when we are preparing an offer. It will be made out to our real estate brokerage's trust account until such time that the agreement is unconditional or in the event it does not move forward we return the payment in full to you. It is important to note that we will need proof of your deposit availability prior to going out to view properties (typically a print out of your bank statement showing the deposit funds are available).

Q.I'd like to rent to own a home or condo but I'd like to do it with a friend or relative. Is this possible?

A. You can buy with a friend or relative in the same way that you can buy a regular home with a friend or relative. You can all be on the agreements sharing the risk and the reward.

Q. Can I use my own Mortgage Broker and real estate agent?

A. Our Rent To Own program is very unique, takes ongoing time to set up and administer, and we have our own mortgage brokers, credit specialists and representatives to help guide you through our process. If you have been working with an agent or broker already, they can still receive a referral fee from us for the work they have already completed with you so far. Just let us know up front.

Q. What size mortgage can I qualify for? *

A. The general guideline is four and a half times your household income. For example if your household income is $100,000 you will likely be able to qualify for a home in the $450K range. It is important to note this is only a guideline and the licensed experienced mortgage professional that we will connect you with should you decide to move forward will help you determine the true amount.

Q. What will my monthly payment be? *

A. 200K home = $1900 total monthly payment with $300 applied to the closing costs or purchase amount *

A. 300K home = $2650 total monthly payment with $500 applied to the closing costs or purchase amount *

A. 400K home = $3300 total monthly payment with $600 applied to the closing costs or purchase amount *

A. 500K home = $4000 total monthly payment with $800 applied to the closing costs or purchase amount *

A. 600K home = $4700 total monthly payment with $1000 applied to the closing costs or purchase amount *

*these are guidelines only. The final amounts will depend on initial option amount provided, term of the agreement, investor requirements (if investor participates) and total deposit required to qualify for a mortgage.

Q. Can the price of the home change?

A. No. You have a guaranteed price on the home.

Q. How long does it take to buy a Rent to Own home?

A. This will depend on how long you need to qualify for a mortgage, how much deposit you have upfront towards your purchase, how much you can afford each month and the price of property you are seeking. Some complete within as little as 6 months while others take 3 years or longer. Most Rent to Owns complete within 2 to 3 years.

Q. Why do property owner or investors participate?

A. We add 3-4% to the initial agreed upon price per year (increased profit) and just as important they don't have to be landlords because we give you the same bundle of rights as ownership. Exammple: A $300K home on an one year term would cost you $310,500. (3.5% x 300K = $10,500).

Q. How do I know if the property will need work and/or repairs during my rental period?

A. I will require you to do a home inspection so you will have a binder on the home detailing all elements of it which includes all items that may need repair such as roof, foundation, furnace etc.

Q. What if property prices go down?

A. In the unlikely event this happens you and the investor or home owner can decide to extend the agreement until prices rise to the agreed upon amount or all parties can decide to split the difference with you on the loss (ie. if the appraised amount is 10K under your agreed upon price you would pay an extra $5,000 and they would discount the property by$5,000).

Q. What are the fees for your rent to own program?

A. No fees are charged to apply and none are charged if you do not get approved for our rent to own program. A $300 plus tax commitment fee will be due upon your acceptance and your approval of a mortgage plan by a mortgage broker.

- $1000 is due upon your rent to own agreements conditions being removed (this is when the contract to purchase the home is in force and binding on all parties) - You will pay for a home inspection and a home appraisal with a fair market rent rate report. The cost for both of these items will likely be in the $650 - $750 range. - The sellers of the property will pay real estate commission typically 7% on the first $100K and 3.5% on the balance split between the sellers and buyers real estate brokerages. These fees are paid by the seller when the purchase transaction completes. The fees are not paid by you.

Q. What if I qualify for a mortgage and therefore do not need a rent to own option?

A. I will continue to act as your REALTOR« to assist you in purchasing a home and no rent to own fees are charged. This does happen occasionally and in some cases my clients have been approved for both options. For example they qualified for a mortgage at $350,000 or for a 3 year rent to own option at $400,000. With one application we can help you determine which option(s) make the most sense for you

Q. What are my property rights as the tenant?

A. You will have the right to treat the home as if you own it right from day one which includes the right to have pets, to paint, to improve on the property, to add a pool etc. If major modifying of the property is required we would require an approval of the investor or the home seller at the offer to purchase stage of the negotiations. Any modifications you make must of course be done to code, by licensed contractors and approved by the city if permits are needed.

Q. Can I sell the property at anytime or buy it at anytime?

A. Yes, as long as you pay the investor or the home seller the agreed upon property price.

Q. When I am ready to buy my property and I find it has increased in value; do I get to keep the increase?

A. Yes. Your price you are going to pay is established on day one in writing. Regardless if the market appreciates or you improve the property, the price will never change during the term of the agreement. You have a guaranteed price in writing.

Q. Can the rent increase?

A. Your rental amount will be set in the agreements with a fixed term tenancy. This ensures there are surprises down the road and no one can kick you out of the property as long as you pay rent and follow the tenancy agreement.

Q. Do you Rent To Own all property types?

A. Yes, with the exception of the following types of properties: Mobiles -It is almost impossible for us to get mortgages on them and they do not typically appreciate in value. Farms, native land properties or homes needing to substancial renovations - It is hard for us to sell these properties in the unlikely event you do not complete on the purchase and as such these types of properties require a significant deposit up front from you.

Q. How can I ensure that my credit improves enough to obtain a mortgage by the time my rent to own agreement concludes?

A. We will connect you with a mortgage broker and if necessary either they will provide credit counselling services or a credit expert will to ensure you know exactly what you to help you improve your financial profile over the course of your rent to own lease. If you haven't already done so please begin by filling out our FREE Application.

Q. Do I have to buy the property at the end of the lease?

A. Yes, you will be agreeing to purchase the property. If you do not purchase the property you will lose all of your option payments.

Q. Will my initial option payment and monthly option payments be returned to me if I do not purchase the home at the end of the lease?

A. Your initial opiton payment and monthly option payments are non-refundable. If you do not execute your purchase option, this money will not be returned to you. This is one of the critical risks of rent to own transactions, and it is why we have you contact our mortgage broker to ensure you have a plan you can execute to ensure you purchase the property.

Q. What can tenant-buyers do to improve their chances of purchasing the home at the end of the lease?

A. Most importantly, you should not do a rent to own transaction unless you have spoken with, and have a plan in place to qualify for a mortgage, with alicensed mortgage broker that is experienced in rent to own. Once in a rent to own transaction, you will need to implement the financial plan provided by the mortgage broker. You should also seek assistance, when appropriate, from professionals like credit improvement consultants.

Q. What are the steps?

A. Please begin with our free application. Once we have received it we will then call to discuss your options and answer any questions. Should we decide to proceed the following steps will be taken:
1) We would meet to go through our program and how it works.
2) If you decide to move forward an application is filled out and forwarded to an experienced licensed mortgage broker.
3) The mortgage broker will call you typically within 48 hours to discuss your situation so he can provide a mortgage approval amount, the necessary term, and your plan for obtaining a mortgage.
4) You agree that the mortgage amount makes sense for your needs and the plan is achievable (what you need to do such as not increase your debt, clean up credit issues etc). An email is sent to you and me with the approval and plan.
5) Upon receipt of the approval the $300 is charged. At this point I will create a financial plan to ensure your monthly payments, your initial option to purchase amount and your accumulated option amounts each make sense for you.
6) We would begin our search for properties that meet your criteria.
7) As your REALTOR« I will help you find a property, provide advice and assist with preparing the legal documents necessary to proceed with an offer.
8) The offer will have subjects that I will assist in drafting such as subject a satisfactory home inspection and appraisal.
9) Once you are satisfied with all subjects we will remove them which is when the $1000 is due and you will now have the legal right to rent to own the property.
"If you would like to proceed I invite you to begin with our free application." Corey O'Neil, REALTOR« & Rent To Own Advisor