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FAQ – Tenant

Yes, you need a minimum of 10% of the price of the desired property as well as between 1 and 2% more for the fees depending on the situation. This down payment is used to pay the purchase option cost on the property. This amount will be converted into a deposit at the end of the term and deducted from the sale price. The price paid for the option is non-refundable if you decide to no longer purchase the property, if you do not qualify for the redemption or you default on your payments. We mention these because we are looking for families who want to be future homeowners. We are dedicated to providing outstanding credit repair and support services to all who are ready to become future owners.

We never place clients in homes if we believe they will not qualify for the pre-established resale price. Our mortgage broker analyzes your future borrowing capacity at the outset of the transaction to avoid any surprises.
If you do not qualify for the bank at the end of the contract, the investor can renew you for another year for a maximum of five years in total. This solution will be possible only if you have complied with the terms of the contract and can show an improvement in your credit rating during the term.
On the other hand, if you are not eligible for the bank because you have been negligent in the process of restoring your credit, late or missed payments, the investor is not required to accommodate you with a renewal.
In this case, the deposit you have as a down payment may not be refundable. It will be kept as compensation.

As you will be the future owners of the house and you live in it, you are responsible for all current and future repairs and renovations. If a faucet starts to flow, it’s your responsibility. Responsibilities must be assumed from the outset in the lease option program. You are treated as the current owners with respect to responsibilities. We recommend that all our clients opt for modern, renovated properties where they would not have high maintenance or repairs in the short to medium term. Also, any major modifications requiring permits on the property must be approved by the owner and …

Monthly credits are a part of your payment that you make each month. This amount is used to accumulate more down payment on your eventual purchase. Note that you must not be late or miss a monthly payment, you may lose some or all of your monthly credits. Monthly credits are like equity * in a normal mortgage. They are credited with the resale price each month and accumulate at the end of the term. When you redeem the property, your option fees are converted into a mise …

The resale price is based on the rate of appreciation of the sector. It varies between $ 5,000 and $ 7,000 a year. These clauses are written in the purchase option. The redemption price is fixed. The resale price can be reviewed at the end of the term if you need a one-year renewal.

Your purchasing power is evaluated by a mortgage broker. It assesses your buying capacity based on your gross income and your initial paid amount for the call option (down payment). The duration of the contract is evaluated according to the history and the score of your credit bureau. If you went bankrupt or a consumer proposal, it will also affect the duration.

As long as you abide by the call option contract, as the monthly payment is made monthly and you improve your credit rating, there is no risk involved. You put yourself at risk when you miss or are late on your monthly payments. You risk losing your call option and the amount paid for the purchase option you have and the monthly credits. You are your best guarantee in the buy/sell program!