Most people rent a home because their present financial condition does not allow them to buy a home. In that case, leasing a home or rent to own house is an option that one can opt for. One should go for a home  that is available on lease with an option to purchase later. Specified amount of money is paid for living in the house and portion of the rent is utilized toward purchase of the property.

Lease purchase offers one with rent credit that reduces the final amount if home is purchased later in the date. Various rent to own Brampton companies suggest that the rental agreement should include the price of the house, monthly rent and the time period in which you can purchase the home. All details of the deal should be mentioned in the agreement that is to be signed between the two parties.

Defining Rent Premium

There are certain extra fees that one requires to pay in the rent to own home option. These are termed as rent premiums and option fees. When you decide to purchase the house there is a certain amount which goes toward the purchase termed as option fee. In case a person chooses not to buy the house, the option fee would go to the owner.

Reason Why People Are Heading Toward Rent Own Home

If the person is not having a good credit rating, he goes for rent to own home. Mortgage loans and homes are given to people with sound credit history. Even the interest charged is also very high in comparison of RTO homes. People who want to keep themselves away from the hassles of loans, this is the option for them to go for.

Benefits For The Buyers

RTO is a beneficial deal as they are provided with the facility of living in the desired home. They will even have the possession for the decided lease period. As the final purchase is reduced, the rented money will not go waste. With the market change in some years, the buyer can change with it.

In case the buyer is not qualified for conventional mortgage, they can still continue living in the same home. This saves the time of the buyer by avoiding shifting twice. Condition of property is better than the traditional rental.

Positive Aspects in case of the Sellers

They retain their ownership for few more years in such deals. If the decision of buying the home is changed by the buyer, earning is still provided to the seller. Property is retained by him if it is not offered with a desired price. Regular monthly cash flow in for the seller is also quite good. Most of the buyer are only interested in purchasing the property to live in so tenant takes care of the property.

“Renting To Own” provides an affordable way to rent and buy a home in Toronto, Brampton and Mississauga. They deal with transparency that makes the buyer deal at ease. They lend loan at low interest making the deal more tempting.