How to buy house on hire purchase?????

[Ashy12]

Can anyone tell me How to buy a house on hire purchase in Ontario??

 

[ALRIVAS]

Hi Ashy12 you can purchase a property even if you are a visitor to Canada the only difference is downpayment for visitors or foreign investor minimum downpayment is 35%.
If you have a work permit with a sin # 9 or 0 then it will depend on your credit history and income so you are looking between 5% to 20%.

 

[Nigel38K]

True. Can't argue with that

 

[odin2404]

It's called "Rent to Own"

You:
Pay a non-refundable deposit (for much lower than a down payment)
Pay rent for 24 months
After 24 months buy the property

Seller
I buy the place for you
Charge rent
Apply the deposit to the final price at the end of the lease
Apply a mutually agreed part of the rent to the purchase price.

Your risk:
Nothing
Is at the end of 24 months you cannot buy - you lose the rent and deposit.

Seller Risk:
I might get stuck with a property I don't want, I could sell it later.

How does the seller benefit:
The spread on the rent

How you benefit:
Less deposit. Eg: on a 300000 property a bank may ask you 20% which is 60000, seller can work around 18000.
Part of money towards rent goes to purchase. Eg: If you pay 800 pm, seller could put 400 for rent and 400 to your purchase price so you don't throw away all 800 in rent.
Helps to build credit.

Hope that helps. Let me know if you have more questions

 

[ALRIVAS]

Hi Ashy12 in 12 years as realtor never heard of anyone buying a property with a rent to own program I heard of people losing their money with this program.
Before you sign anything ask for details like what happens if I can't pay my rent for a month.how much becomes downpayment,how long is the contract,can I do an inspection,who will pay for anything happening to the property,what if I deside to move before the end of the term.
The list goes on if you are in the gta please contact me alrivas. com

 

[odin2404]

Yes, please ask the 12 year relator "what happens when you cannot pay the rent" on any property? Ignorance of something is not valid reason for running it down. I bought my house with Rent to Own, why don't we get an example of "people losing money"?

And if you're in the GTA, google a realtor!