Learn More About Rent To Own
Essentially, “Rent To Own” (also known as rental-purchase) is a lease type agreement between the buyer and seller, where there is an option to purchase at some point during the agreement. It is a way of purchasing a home when you have challenged credit or no down payment in place. It certainly has its advantages, but in order to have a successful transaction, details of the contract need to be clear and compliant with governing law and lender guidelines and rules.
In the Vancouver area, with rising prices, Rent To Own is a viable solution for some buyers. However, be careful when you enter into a “Rent To Own” contract. In BC, if there is mortgage solicitation involved, you require a licensed mortgage broker to facilitate the mortgage for you. If the mortgage is being arranged only by a Real Estate agent or developer, you need to make sure that a licensed mortgage broker is guiding you through the mortgage process.