House Hunting In Toronto Real Estate Team - Rick McGuigan & Robert Holbrook

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Nobody likes to pay the mortgage of his or her landlord, that is why most people prefer to buy a property, instead of renting a home. However, not everyone qualifies for a traditional mortgage loan, for example if they:
do not have enough down payment;
have a bad credit history;
do not have a job with a regular income;
are newcomers to Canada (no credit history);
are self-employed.
Nevertheless, if you are truly determined to become a home owner, there are solutions available.
Your first option would be to discuss your situation with a mortgage broker who might be able to come up with a financing possibility not available at regular banks.

A second option is a Lease-to-Own Program.
Lease-to-Own is an arrangement where an individual enters into a lease agreement with the inclusion of a clause that gives the individual the right, but not the obligation, to purchase the property leased at a predefined price and time. A portion of the total rental payment goes toward paying down the value of the house leased in the event that the renter wishes to exercise the option.
With a Lease-to-Own Program the tenant/buyer can:
Build or repair credit;
Save towards a down payment;
Move into the home of his choice  immediately;
Start accumulating equity right away.

The cost involved in lease-to-own agreements tend to be more expensive compared to standard rental agreements. In addition to paying rent, lease-to-own contract users need to pay an option fee (similar to an amount paid to buy a traditional stock option), and a rent premium as well, which is not returned to the renter in the event that he or she does not exercise the option to buy the leased property.

The Lease Option is broken down into three parts:
Option Deposit;
Monthly Payments;
Purchase Price.
The Option Deposit is paid up front and will be credited towards the down payment of the home at the end of the contract term.
The Monthly Payments, also called Lease Payments, are the monthly rent payments. A portion of the Lease Payments will also be credited towards the down payment of the home at the end of the contract term.
The Purchase Price is agreed upon at the time of contract signing (based on the projected value of the home at the end of the contract term).
How long is the lease?
Because you want to use this program as a means to save up for a down payment and repair or establish your credit so you can obtain a mortgage, the lease is usually 2-5 years in length; however, it can be shorter or longer.

What are the fees involved?
The only additional fee is an upfront option deposit that would be dependant on the property you would like to live in and eventually purchase. The monthly rent is slightly higher than the average rent in the area for comparable units because a portion of it will be put aside for your down payment.

How does the Lease Option work?
Basically, you sign a lease agreement with an option to purchase the property at a predefined price and time. The tenant has no obligation to purchase the property at the end of the lease agreement.

What homes are available?
Any home available for sale that meets your criteria. Based on your requirements, you will receive listings, just like any other home buyer. Once you find a home you are interested in, an appointment will be set up for you to review the property (or properties).

Who do qualify for Lease-to-Own?
If you can afford a reasonable monthly payment, you can easily qualify for Lease-to-Own.

What happens at the end of the contract term?
Your initial Option Deposit and the monthly credits will be applied to the purchase price and will be viewed by conventional lending institutions as an acceptable down payment when you exercise your Option to Purchase.
Would you like to know more about Lease to Buy?
Please complete the Questionnaire below and we will contact you.

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Price range *



Number of bedrooms *
Number of bathrooms *
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Employment *
Position *
Maximum monthly rent you can afford *
When are you planning to move? *
Additional information *
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CONTACT INFORMATION
Rick McGuigan and Robert HolbrookToronto real estate sales representatives

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