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FAQ – Owner

  • Sell your house;
  • Look for private financing (very high rate, interest-only payments, you will not be able to pay all your debts, all depends on the equity you have on the house);
  • Rent with option to buy / buy-buy;
  • Do nothing and wait for the bank to take your property.

A call option is a contract signed between you and the investor that stipulates your right to purchase the house. No sale can be made until you exercise your right during or at the end of the contract. Do not forget that the investor wants you to buy your house to put his money in another project – it is therefore in your interest to succeed.

The investor becomes the owner and keeps the house for you temporarily. He wants to put his money to get a return simply. He has no interest in occupying your home.

Insurance is strongly suggested because it protects your family in the event of an unexpected death.

Before entering the program, our mortgage broker will conduct a very thorough analysis of your situation and your file. It ensures that you have the financial capacity to recover your home.

If you can not fulfill all the conditions for a mortgage at the end of the contract, the investor can give you an extension of another year if necessary. This solution will be possible at the discretion of the investor. He will use his overall experience with you, your payment habits and the improvement of your credit over the term to renew you one more year.

On the other hand, if you do not meet the criteria of the bank because you have been negligent in the process of restoring your credit, late and/or you missed payments, the investor is not obliged to accommodate you with an extension. In this case, the deposit you put for the call option may not be refundable and may be used as liquidated damages.

If you are serious and your business, there will be no problem. The investor simply wants to see a sustained effort and have a good experience with you during the term.

You are responsible for repairs and renovations. If a faucet starts to leak, or a door handle broke, it’s up to you to fix it. You must take care of the places as you did before the transaction. You were and are treated as the owners of the house, thus including any necessary repairs or maintenance.

However, any changes made to the property must be approved by the investor and must be requested in writing (an email with his approval may be sufficient, at his discretion).

A confirmation letter will be sent in writing and must be kept as proof of the owner’s approval of the changes. Renovations must be done by a certified contractor.

The resale price is based on the rate of appreciation of the sector. It varies between $ 5,000 and $ 7,000 a year.

For your comfort and so that there is no surprise, the redemption price is fixed. The resale price can be revised only if you have not fulfilled your obligation to improve your credit rating and if you must be given an extension.

Leasing lasts between 1 and 3 years. The duration of the contract is evaluated according to the history and the score of your credit. If you went bankrupt or a consumer proposal, it will also affect the duration. During this period, you must make your monthly payments and correct your credit rating to buy back your house.

You are your own rental insurance policy with an option to purchase. As long as you comply with the call option contract, that the monthly payment is made monthly and that you improve your credit rating, there should be no problem. It is a relatively simple program to understand and follow.

You expose yourself to the risk of losing your deposit and your purchase option when you miss or are late on your monthly payments, are negligent with your credit and you do not perform a reasonable maintenance of the house during the term.

This is the same principle as making mortgage payments or paying property and school taxes. If you do not pay them, you risk losing the house.