RENT-TO-OWN OR LEASE OPTION QUESTIONS

What is Rent-to-Own?
The process works similarly to a car lease: You pay a monthly rent each month to live in the house, and at the end of a set period — generally within two years — you have the option to buy the house. Each month, a portion of rent will get credited toward the price of the home. An initial option payment is also required to secure the option to purchase the home and the buy-out price of the home.

Who benefits from Rent-to-Own?
• If you have good to excellent credit, but do not have enough down-payment to buy a home via conventional bank financing. Rent-to-Own helps you build up your down payment monthly via monthly credits until you have enough to qualify.
• If you have ugly credits and need time to rebuild your credit. Rent-to-Own allows you time to bring your credit to good standing while living in a nice place you can call home.
• If you are an out-of-country immigrant/visitor who cannot qualify to get a loan due to lack of credits. Rent-to-Own allows you to have a home of your own while you build your credit status in Canada.

Why Rent-to-Own When You Can Just Rent?
When you rent, you save nothing! Realty Express Rent-to-Own program gives you large monthly credits that you can apply toward the purchase price of the home. This helps you save up your down payment faster than you can save on your own while renting. You establish a stable foundation for your family and there’s no need for you to move after the lease is up. No more headaches about switching school for the kids, changing utilities, forwarding your mail, etc. just because the lease is up or the landlord decides to put the house up for sale. Your kids can build great friendships with the neighbourhood kids. With our Rent-to-Own program, you are considered the owner the day you move in. You can build a beautiful garden for your wife, a treehouse for the kids, a private office for yourself in the basement, paint the teenage bedrooms any funky color they want; simple things that build priceless memories and experience for you and your family.

How much is monthly rent?
Just like mortgage rates and rental market, there is no magic formula that can calculate a head of time how much monthly rent will be. Each house will be different depending on the Where and When. Rent amount depends on how much Option Payment you initially put in and the current mortgage rate and rental market.

How much of an initial Option Payment will I need?
As much as you can afford! The more you put in, the less monthly payment you’ll make. When you find a beautiful home in a nice neighborhood, many people will apply to get into that same home. The larger the down payment you have, the higher chance you have of getting approved. It will also make it easier to get you financed when you are ready to buy. Remember, we can accept borrowed funds and we can work with you with several different options to obtain your initial Option payment. However, we want to avoid characterizing the Option Payment as a ‘security deposit’ applied by a renter.

I like to Rent-to-Own of the homes listed, what do I do next?
If you haven’t seen the house yet, we recommend that you schedule a viewing by calling 403-880-0100.  When you fall in love with the home, you can fill out an application online, fax or email a copy to leasetoown@realtyexpressinc.ca.  Your application is just a starting point for us to customize a Rent-to-Own program that fits your financial situation.  When your application is approved, we will meet with you to go over the program, the paperwork that needed to be completed by attorneys, and answer any questions you may have.  We do all paperwork and money transfers through attorneys.  We recommend that you have your own attorney to handle the paperwork for you.

We heard about an Accelerator Program, what’s that?
On most of our homes, you have the option to pay up to $100 per month towards the purchase of the home. We will match 20% of that amount towards the purchase of the home. The Accelerator Program lets you build up to a predetermined amount in additional equity during a 24-month lease period.

What if the Property Taxes go up?
We pay the property taxes and the Real Property Insurance. If they go up, we absorb those increases. You will have to pay for your utilities, club membership and association dues. This seems fair, since you receive the benefits from those. You will also need an insurance policy for your personal possessions.

Can I buy the Home before the end of the Lease?
Yes, you can exercise your option to buy at virtually anytime during the lease period. On some homes, you’ll need to live in the home for the first 12 months before exercising the option.

What kind of improvements can I make?
We want you to feel that the home is yours. You can make any improvements, however, we require that you notify us and obtain and required local permits and follow the proper building codes.

Can we build a Deck or a Fence?
Like we said above, we want you to make those improvements. You should enjoy the benefits of home ownership.

Will the price of the Home go up?
NO!! We freeze the price of the home for the duration of the lease-option (usually 24 months). At any time during that period, you can purchase the home for the guaranteed option price. By freezing the price of the home, you won’t be ‘shooting at a moving target’ when you talk with the lenders.

How soon can I move into one of your homes?
We only show homes that are currently available. So if you see one of our homes you can move in immediately. We will continue to notify you of homes that we have available. However, be sure to let us know of your specific needs so that we may contact other investors for properties that meet your desires.

Where do Option Payments go?
100% of the Option Payment will be deducted from the price of the home when you buy.

Will I lose the Option Payment if I don’t buy?
Yes, if you don’t buy the house you’ll lose all monthly credit and option payment. You may be able to get your option payments and credits back if you find a buyer who can purchase the house for the same Option Price or higher.

If I find a buyer for the home, will I get my Option Payment back?
If you bring another person who purchases the home for the same price or higher than your Option Price of the home, then YES, you may be able to get your Option Payments and Credits back. If you find a buyer who pays higher than the Option Price, you may even pocket the difference!

Your Program is Unique, should I tell others?
We provide a $250 finder’s fee to you if you refer someone to us that contracts for one of our homes. When they sign the lease, we’ll send you the fee.