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Writer's pictureVictoria Spinelli

To Rent to Own or Not? Is it a Good Option for You?

Updated: Jul 5, 2023


African American woman shrugging in pink shirt

Hey there, future homeowner!

If you've been considering the rent-to-own option for purchasing your home, it's essential to take a closer look to see if it's the right choice for you.

While rent-to-own can be an excellent solution for many, I won't lie, it's not suitable for everyone.


Let's explore who rent-to-own might not be the best fit for, and why.

1. Poor Money Managers (and No Willingness to Change)

Rent-to-own demands financial responsibility and discipline.

If you struggle with managing your finances and aren't ready to make a change, this option might not be the best fit for you.

Rent-to-own requires regular payments and the commitment to save for a down payment.


However, even if you've struggled with money management in the past, that's not to say that rent to own couldn't be a good option for you.


If you're open and willing to improve your money management skills, there's always an opportunity for growth!


And we will be there to provide support and guidance to help you build good money habits through the rent to own term and beyond - providing you with more financial stability than you ever thought possible!

2. Bankruptcy or Consumer Proposal (Pre-Discharge)

If you're currently going through bankruptcy or a consumer proposal, it's crucial to focus on resolving your financial situation first.


Rent-to-own might not be the most suitable choice until you have been discharged from your financial obligations.


However, once you've successfully completed these processes, rent-to-own could become a viable option for you.

3. No Savings (But We Can Help!)

Building up savings is an important step towards homeownership.


If you don't have any savings, it may be challenging to embark on the rent-to-own journey right away.


However, don't worry!


We can work together to create a personalized plan that helps you save for your future home.


With dedication and a little patience, you'll be on the right track towards achieving your goals.


Old Habits turning into new habits dice


4. Unstable Income Source

Rent-to-own requires a stable and reliable income source.


If your income is inconsistent or unreliable, it might make it difficult for you to meet the financial obligations that come with this option.


It's crucial to have a steady income to ensure you can comfortably manage the monthly payments and be setup to get an approval from a bank at the end of your rental term.

5. Transient Lifestyle

Rent-to-own is typically designed for individuals who intend to put down roots and stay in the same home for at least five years.


If you're someone who enjoys exploring new places and frequently moves around, this option might not align with your lifestyle.


Rent-to-own is ideal for those seeking long-term stability and investment in a property they can call their own.


In Conclusion

Remember, the goal is to find the best path towards homeownership that suits your individual circumstances and aspirations.


Renting to Own is often the last option that people explore when they unable to qualify for a traditional mortgage, or for those who don't feel comfortable with the high risk and expense of a private mortgage.


But make sure that you understand the commitment that comes with entering a Rent to Own arrangement.


It is a 2-5 year commitment that requires effort, sacrifice and often changes to your money behaviour in order to be successful.

Consider your financial situation, goals, and personal preferences before making a commitment. By being honest with yourself and assessing your needs, you'll be better equipped to find the most suitable path to homeownership.

Best of luck on your journey towards owning your home!

Warm,

Victoria

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