Rakesh  Babber

Rakesh Babber

Sales Representative

Cityscape Real Estate Ltd., Brokerage

Mobile:
416-450-0747
Office:
905-241-2222
Email Me
Rakesh  Babber

Rakesh Babber

Sales Representative

Cityscape Real Estate Ltd., Brokerage

Mobile:
416-450-0747
Office:
905-241-2222
Email Me

"Rent-to-Own" or "Lease-to-Own" Home Program.

What is our Rent-To-Own Program?

Ever heard of the phrases "Why pay your landlords mortgage?" or "Why pay rent when you can own?" or "invest in yourself before you invest in others".

Many people dream of owning their own home but for a variety of reasons they feel it's not realistic for them to do so just yet. Our program is designed to help you to achieve that dream sooner rather than later. If you fit into one of the following four categories then this program may be the answer for you.

  1. You don't have the 20% down payment required by most financial institutions.
  2. You are new to Canada and therefore don't have any credit history to show to a lender.
  3. You have lived in Canada but don't have any credit history.
  4. You have bad credit but you can show that you have a steady household income and are willing to make the effort required to improve your situation.

Call me at 416-450-0747 to get more details or fill in the form at the bottom of the page and I will contact you promptly to discuss your needs with you.

How it Works?

Here's the step by step process that you would go through


STEP 1: You complete a brief online application form.

STEP 2: We review your application and discuss your circumstances with you to see if our program is a good fit for you. 

STEP 3: You provide us with the necessary documentation and we qualify you for a specific budget (taking into account your income and expenses) that you can comfortably meet each month.

STEP 4: At this point you are qualified and we start the house hunting process. We look for a home that YOU like anywhere within YOUR preferred location that is within YOUR pre-qualified budget.

STEP 5: Once we find the best home within your budget, we contact our investor to go over the numbers again and if it is satisfactory for the investor and it meets your criteria, the investor buys the home. Everything is upfront and clear. You know what you have to pay every month, how long you pay that for, what the house will cost you after 3 years when you exercise your option to buy the home.

STEP 6: You start to build your equity in the home starting from the day you move in. A portion of your monthly payment goes towards building your down payment to buy the house that you already live in when your Rent to Own term contract ends. Our goal is to have you accumulate at least 10% down payment towards the future purchase price of your home, and to make you a proud homeowner.


It's that simple!!!


What you need to Qualify?

Our qualifications are not as strict or stringent as the banks or other financial institutions. Here's what you need to be able to qualify:

  1. A minimum deposit of $10,000 which will be your initial equity in the home that you want to own when your Retn to Own term completes.
  2. You will need to provide the following documents if you chose to to move forward
    • T4 or Notice of Assessment from 2012
    • Two pay stubs from the past two months
    • Employment letter stating wages, job function and start date
    • Your Credit report from Equifax or TransUnion
  3. If you have a past bankruptcy then we require proof of discharge.

If you are able to demonstrate the above three points, you can qualify to own your own home and not live on rent paying someone else's mortgage instead.


Sample Scenario:

Here's a typical situation to give you an idea of what to expect.

  • You have bruised credit, an annual income of $30,000 and an initial deposit of $10,000.
  • The home that you like is $200,000 and has passed a home inspection.
  • Our investor will make an offer to purchase the home from the seller.
  • Once closed the investor will sign a Rent-to-own contract with you as a tenant.



Initial and Monthly Costs

Initial Deposit

$10,000

This is a deposit that you make that goes towards buying your home when your contract with the investor ends.

Monthly Rent

$1,300

Assuming market rent in the area is $1,100/month.

The investor charges a premium of around $150 to $200 per month.

Option to buy per month

$400

This amount is your payment that goes towards building your equity in the home.

Total monthly Payment

$1,700

 


*You will be responsible for utilities
**Investor will be responsible for maintenance and property taxes


You will have the option to “buy out” on the anniversary of each of the 3 years during the term of the contract as shown below

Buy Out Options

Term

Price on Anniversary

Total down payment credit available towards buying your home

Mortgage amount required to own your home

End of Year 1

$212,000

$10,000 + ($400*12) = $14,800

$197,200

End of Year 2

$222,600

$10,000 + ($400*24) = $19,600

$203,000

End of Year 3

$233,730

$10,000 + ($400*36) = $24,400

$209,330

The mortgage broker will help you by counseling you on how to ensure that at the end of your term you are in a position to buy the home.  

What's in it for you?

As they say in life there are no free lunches!!! There are advantages and disadvantages to this process and you need to be aware of both. Here’s what you should know


Benefits

  • You start to live in a home of your choice in an area of your choice almost immediately.
  • If you have bruised credit, then over a period of time you have the opportunity to rebuild your credit so that you can qualify for a mortgage with conventional lenders
  • The purchase price of your home is determined upfront and does not change.
  • Your monthly payments for the duration of the contract are locked and will not increase for the length of the contract.
  • Qualifying for the program is easy as long as you have the initial $10,000 deposit and can pay your monthly rent.
  • The equity in your home starts to go up with each monthly payment that you make.
  • If the market value of property goes up in the area, the amount that it goes up by will be is your gain.
  • The investor pays land transfer taxes when the home is initially bought.
  • The investor pays the property taxes while you rent.
  • If you choose NOT to buy out at the end of your contract, you are not on the hook or obligated to buy the home. 



What to look out for

  • You MUST make sure you are able to make your monthly rental payments
  • If you do not, then the investor has the right to evict you upon appropriate notifications.
  • If you choose at the end of your term, not to buy out the property, then any equity (your down payment and all payments) that that you made will be forfeited.
  • If you are planning to use this as a strategy to own a home, then make sure that the eventual goal is to purchase the home. Otherwise it will cost you more money in fees and above market rental payments.

Now that you have all the information and want to make the move to achieving the dream of owning your own home within 3 years, contact me for more details and I will help you along the way. Just fill in the form below or call me at 416-450-0747 to discuss.

Have Questions?

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416-450-0747

  

905-241-2222

  
Welcome to my website.

I hope you will find the information on my site useful and informative. If there is something that you cannot find or need more details or clarification on, please feel free to drop me a line at 416-450-0747 or send me an e-mail to rakesh@rakeshbabber.com and I give you my commitment to find an answer as quickly as possible.

A little bit about myself. I am a highly motivated and personable individual with an extensive background in effectively managing the needs of my customers and clients. I have a BSc (Hons) in Computer Science and Mathematics and a very successful track record in finding solutions for my clients. My ability to listen to my customers' requirements and focus in on specific solutions for them, has been a key factor in allowing me to run a profitable business in the software development services industry for over 15 years. I believe my biggest asset is my ability to quickly understand what's important to my clients and work with them to guide them to the right solution that fits their requirements.

My real estate experience includes over 5 years of working with other realtors, mortgage brokers and industry professionals in managing their business operations and clients effectively. As a result I have learned the "ins and outs" of the real estate profession well enough to guide customers in the right direction when making their realty decisions. My analytical approach combined with my sense of humour and ability to remain poised and competent under pressure, help me in negotiating the best deal for my clients. I believe I'm uniquely placed to help my clients with their real estate needs.

I look forward to being able to help you in your endevours to get that dream home or jump into the real estate market for investments or just simply providing you with the information you need to make an educated decision. My goal is to make your real estate journey a happy and fruitful one. 


Languages Spoken: English, Gujarati, Hindi, Punjabi, Swahili