ASP Canada Rent-to-Own allows you to live in your dream home today without having to meet the typical financing qualifications required by the big banks. Our unique program is designed to assist Canadians who experience difficulty in qualifying for conventional financing, either because of bruised credit or lack of down payment.
What is Rent to Own?
Renting to own consists of two separate contracts:
- An Occupancy Agreement – similar to a rental contract.
- An Option to Purchase Agreement – the contract stating your intentions to buy the property within a specific period of time.
Our Rent-to-Own Program requires a deposit of 3% which we call “Initial Option Payment Credit” (Non-refundable). To purchase the property you will need another 7%. This 7% is divided by the number of months in your Occupancy Agreement and added to the market rent of the property. This is done to make sure you have the full 10% down payment to buy the property. The higher your deposit, the lower your monthly payments will be.
Suppose you want to buy a property that by our estimation will be worth $256,000 at the end of your Occupancy Agreement in 3 years and you only have $7,680 (or 3%) to put down as the Initial Option Payment Credit. You will still need another 7% or $17,920, so we divide the $17,920 by the number of months in your Occupancy Agreement to give us the Monthly Option Payment Credit. This will be added to your current market rent and is non-refundable. Basically, we let you pay your down payment one month at a time.
Banks have strict lending policies that restrict many individuals from qualifying for a mortgage. But with ASP Canada Rent-to-Own it’s easy to qualify. The program is flexible and can be customized to your needs. If you have a reasonable Initial Option Payment Credit and good income to support the additional Monthly Option Payment Credit, you should qualify.
In addition, our credit counselor will help you rebuild, repair or establish your credit. They will review your credit report with you and provide you with a personalized plan for you to follow. Our tenant/buyers love it because it gives them time to save up for a larger down payment, time to clean up past credit problems or time to sell another home.
Why Rent-to-Own Might Be Right For You:
- Manageable down payment
- Poor or no credit history
- Build towards ownership while renting
Our rent-to-own program is very flexible in the amount of down payment required and/or the monthly payments. Once we approve your application, you are treated as the owner of the property the day you move in. Our program is design to help you qualify for financing as soon as possible. Typically we can help you qualify for conventional financing within 3-5 years if you follow our program. We can extend the program longer if necessary as long as you are not in default with us. Our credit counselor will help you rebuild, repair or establish your credit rating. Our Counselor will review your credit report with you and provide you with a personalized plan for you to follow. This plan, if properly executed by you during the rental term, will improve or establish your credit rating sufficiently to be approved by conventional lenders.
Fill out our quick Rent-to-Own Questionnaire and get the ball rolling today! What do you have to lose? Stop paying rent and start owning!
How Long is the Rent-to-Own Agreement
We rent you the home for a period of 2-3 years with the Option To Purchase at the end of the rental period. Our tenant/buyers love it because it gives them time to save up for a larger down payment, time to clean up past credit problems or time to sell another home. We are obligated to sell the home to you. However, you are not obligated to buy. When you purchase the home 100% of your Initial Option Payment Credit and 100% of your Monthly Option Payment Credit is credited towards the purchase price of the home. These credits will act as your down payment. If you decide not to purchase the home you will lose your Initial Option Payment Credit and your Monthly Option Payment Credit. We commit ourselves to helping you at a great financial expense, so it’s only natural for you to lose your credits for not keeping your commitment. We do all we can to make your dream of home ownership a reality so please help us help you. Do not join our program unless you are truly committed to home ownership.
The purchase price will be established up front before signing and is based on the projected value of the home at the end of your rent-to-own occupancy agreement. If the property appreciates more, which is very possible, you benefit from that increase.