Buy a Home With Bad Credit in Toronto

Posted by on March 20, 2012

Owning property is something that many people dream about and strive for. Buying a house can be a wonderful way to award yourself after years of hard work and late evenings at the office. Unfortunately, many people cannot qualify for a mortgage because of bad credit and no savings. Sandstone Management has a neat way to make things easier for you – the option of a  rent to own a home.

As said, buying a house by getting a mortgage can be very tricky if you have a bad credit rating and not enough for a huge downpayment to qualify on the equity. Luckily, rent to own is a great solution where a tenant rents a property with the intention to buy it at a pre-determined price at some point in the future. In contrast to just paying rent, a certain amount from each month’s rent goes towards building equity, to be used when changing over to a mortgage. Making your payments on time every month also helps to build/ rebuild your credit. The lease payment for a rent to own is often the same as what you are now paying for rent, but it goes towards building your future.

Let’s assume that a single family home rents for $1400 per month in nice neighborhood. If you choose rent to own, you will be paying maybe $1500 per month, but some goes towards building equity. When the rental period of say 4 years is over and you decide to purchase the house, the house will now be cheaper. Plus the price of the house will be fixed upon signing the rent to own agreement. Therefore, any appreciation above that price will be yours in the form of equity towards your down payment.   It is also beneficial because if the market price of the house goes up, you will gain from the appreciation.   Paying your rent to own lease is a great way to get your credit into better shape for when you take over the home with a mortgage.

Sandstone Management experts help you to find the best possible solution for rent to own. You can choose your dream house and move in right away, while you build or repair your credit. They help you avoid the pitfalls of buying your first home and help establish how much you can comfortably afford.  Call them at: (905) 235-0841.

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