People who have bad credit and do not have enough savings have difficulty securing a house financing through bank mortgage; thus, it makes it quite impossible for them to purchase their dream home. However, this is only the thing of the past because now it is made possible by rent-to-own deals. Practically anybody, even those who are newly graduates and those who have poor or average credit standing can now avoid the common pitfalls of renting a house for life. What do I mean with this statement? I will try to explain the effects of having to rent as opposed to the many benefits of a rent-to-own program.
Edward has just graduated from college. He decided to move to Ottawa from his hometown to explore the possibility of employment. And so on his first year, he rented a condominium where he can stay together with two of his male classmates. At first it was okay because the three of them were sharing in the rental fee. But when one of them moved out because he decided to explore his options in another location, Edward felt the financial crunch. Although he was already earning because he got employed after just a few months of his transfer, filling in for the rent of the one that moved out was a bit of a dent on his cash flow. This was when he learned about the rent-to-own houses Ottawa program.
Although he will still be paying for a monthly rental fee, he knows that the money will not go to waste because a portion of it, called rent credit, will eventually be applied to his down payment. And besides, he will be paying for the dream house that he will eventually purchase. He knew that after some time he will build a family and he will have to invest in a real estate property where he can raise them. So, this is just making an advanced investment.
He also learned that the price of the property will be pre-set and will not change even if the market dictates so. This makes it very ideal for someone like him who is just starting out his career. He can very well map out his financial obligations even as early as now and as his career progresses with the expected increase in his salary, eventually he can build his equity to pay off for the bank mortgage in the event that he finally purchases the house.
His case is a bit difference from Ella, a single mother who got out of a nasty divorce. Her ex-husband could not afford to support her and their children and so she was forced to work twice as hard as compared to when they were still together. Her ex-husband used to earn enough to support them and she didn’t have to work. But she preferred to be kept busy so she got herself employed in a local store. But when her ex started to drink and got involved with gambling, he lost his job and got messed up.
This was when she decided to file for a divorce. But she knew the consequences. She had to fend for her two kids. She took the challenge boldly and was doing fine with two jobs. Not until the economic crises that hit the country in 2008. She still got to keep her two jobs but her work days were shortened and naturally her pay as well. Her cash flow suffered and she went into a bad credit situation. The house she managed to apply for a housing loan through bank mortgage was going to be foreclosed because she can no longer pay on time. It was a good thing that a friend mentioned about the rent to own housing Ottawa program. She learned that she can still continue to live in their current house, which was so convenient for her.
The program will allow her to pay a monthly rental fee, of which a portion will be applied to her equity. And during the agreed upon period, which was three years in her case, she can rebuild her credit standing and build equity to re-finance their house. It was a very welcoming alternative, which is much more acceptable than moving to another location and lose their precious home.
Both Edward and Ella truly enjoyed the many benefits of a rent-to-own homes deal. They couldn’t be more thankful to this program that brought back hope to their situations. And the best part is they didn’t have to continue renting and throwing off their money. They knew that they are saving up for a future investment when they signed the lease to own homes contract.