We get a lot of applications from people “just kicking tires.” No problem, there; we’re happy to be informative.
What they’re really asking is, “Is rent-to-own right for me?” Maybe you’re wondering about that, too. Here are five questions to ask yourself, to help determine whether rent-to-own is a good fit for you.
1. Am I motivated to get out of renting? Do you feel like you’re wasting your money every month? Are you tired of living under a landlord’s thumb? Not everyone is. If they’re content in their current circumstances, then Rent-to-own (R2O) may not be the answer. But, we’ve found that the majority can answer YES to this one. A motivated client can be very successful in a R2O program.
2. Would I qualify now for a mortgage? If you would qualify now for a mortgage, then a R2O program won’t benefit you. But, if not, and you answered YES to the first question, then a R2O program may be perfect. Many people don’t know, though, whether they qualify now. If you are in doubt, then there are two ways to find out: either go to a mortgage broker (not a bank) and have them check it out, or come to us and we’ll help you to determine whether you would likely qualify now. If we think you might qualify, we’ll help set that up for you, even though we don’t profit from it. (It’s called “pay it forward.”)
3. Am I in a bankruptcy or a consumer proposal? If you are still in either of these, then even we cannot help you yet. But we can help you as soon as you are cleared, whereas the bank cannot begin to consider you until at least two years later, and then only if you have done everything perfectly right for those two years. So, as soon as you are discharged from a bankruptcy or have cleared off a consumer proposal, a R2O might work for you.
4. How disciplined am I? If you are very disciplined and knowledgeable about what it takes to repair the issues preventing you from getting a mortgage, and are willing to wait the two or three years (or more) it will take you to shore up your circumstances yourself before getting into your chosen home, then you may be able to do it by yourself. However, if you think you could use some guidance, motivation and enforced discipline, and want to get into your dream home now rather than waiting, then you should consider R2O.
5. Do I have a secure and steady income? The size of your income will determine how much you qualify for, if you qualify. But if it is not a stable income, then you will not qualify for anything at the banks. Since R2O is a “bridge” program, designed to get you to bank eligibility, we also require a secure, steady income. Otherwise, the risk is too great that we may simply be setting you up for failure at the end. And we never want to do that. But if you are just beginning to enter a source of secure and steady income, then we can work with you much quicker than the banks can.
For a confidential consultation to see whether a R2O program is the right fit for you
, please contact me.