Details of Our Program

Most programs work on the same basic principles:

1. You sign a lease for a set period of time, typically 2 to 5 years, during which you live in the home, caring for it as if you already own it.
2. Prior to moving in, you put a deposit on the home, called an “Option Deposit”.
3. During the time you live in the home, you make monthly payments, much like rent. However, a portion of each payment is credited towards your purchase of the home at the end of your contract.
4. At the end of your contract term, you have the option to purchase the home you’ve been living in.

However, not all programs are created equal.

Some, for instance, may offer a small deposit and low monthly rents, raising unrealistic expectations, but closer inspection will reveal that the credit is also very low, making it difficult to qualify for conventional financing at the end of the contract.We feel that we have developed a program that sets you, the prospective home buyer, up for success. Read on for details of our program.

• Qualifying:
  We do not have the same rigid qualifications required by banks and conventional lenders. We are able to work with you even if you are self-employed, have no credit history, or even a poor credit history.
• Lease Payment:
  The monthly lease payment covers all property taxes, house insurance, and strata fees (if applicable). You will be responsible for utilities and insurance on personal belongings. A rough guideline used by CMHC and conventional lenders, such as banks, stipulates that your monthly housing costs shouldn’t be more than 32% of your gross household monthly income. Housing costs include mortgage principal and interest, taxes and heating expenses. In order to line you up for success, we also suggest that your lease payment follows this guideline.
• Option Deposit:
  Our program does require an Option Deposit which is like a small down payment. This assures us that you are serious about purchasing the home, and it will be the seed funds with which you will grow your down payment and equity. This Option Deposit could be as low as 2% of the property value, although the exact amount will be dependent on the value of the home and the amount you can afford on a monthly basis. You would be hard pressed to find a bank willing to accept a 2-3% down payment. The higher this is, the more down payment you will have at the end of the term. A larger deposit may also reduce the monthly lease payment.
• Monthly Credit:
  When your monthly lease payment is paid on time we will credit a portion of it back to you. The exact amount of this credit will vary between each property and will depend on other factors, such as home value and Option Deposit given, but the minimum is always 20% of the monthly lease payment. We have even managed over 50% on some properties. This can add up to thousands of dollars per year, and can quickly grow your Option Deposit several times over.
• Down Payment:
  The combined Option Deposit and accumulated Monthly Credits will be put towards your down payment when applying for bank financing at the end of the term agreement.
• Appreciation Equity:
  In addition to building a Down Payment, you will be benefiting from any and all appreciation that occurs above the Buyout Price that will be established when you sign up for our program.
• Purchase Price:
  The Purchase Price shown in our Listings is guaranteed for the indicated term. Any appreciation greater than this price will create instant equity in your home, and will contribute to your ability to qualify for bank financing. In our ‘You Find It’ option we will start with today’s value and build in a realistic annual appreciation to establish the buyout price at the end of the term agreement. Our goal is that you succeed by purchasing the home from us at the end of the term. To insure this goal, our aim is to help you build up a down payment of about 10% (or more).
• Credit Repair:
  If your credit history is an issue, we also offer the services of qualified professionals who will work with you to rebuild a healthy credit rating and reposition you for your best chance at conventional bank financing.
• Bank Financing:
  The ultimate goal is that you qualify for bank financing and buy us out. If, at the end of the term, you are not able to qualify for bank financing despite your and our best efforts, we will consider options so that you do not lose the equity you have built into this home. This may mean additional time to enable further credit improvement and/or increase of the down payment. We may even be able to finance additional down payment if that’s what the lender requires.