Rent To Own (RTO) ProgramsRent To Own (RTO) ProgramsRent To Own (RTO) ProgramsRent To Own (RTO) Programsfor Home Ownership for Home Ownership for Home Ownership for Home Ownership

How it Works

RTO PROGRAMS

WHY

There are many reasons why you may not qualify for a traditional mortgage, but with time and planning, you can qualify

• Poor or no credit rating

• Lack of resources for down payment

• Gross debt service (GDS) greater than 32%

• Rules and regulations are subject to change

• Self-employed or business owner

• New job and/or moved to area

RTO PROGRAMS - HOW

WHY

The banks have five strict criteria for you to qualify for a traditional mortgage, these are known as the “Five Cs of Credit” (#1 - #3 are key!)

1. Character - good credit history and employment

2. Capacity - minimum down payment (e.g., 5% - 10%) and income

3. Capital - gross debt service (GDS) less than 32%

4. Collateral - property suitable to be used as collateral

5. Conditions - financial conditions (e.g., mortgage rate)

The Five Cs are explained in the short Investopia video clip here

RTO PROGRAMS - HOW

WHEN

You need time to qualify for a traditional mortgage and will benefit from

• Training for home ownership

• Building-up equity with forced savings

• Building credit score

• Paying-down debts

RTO PROGRAMS - HOW

WHO

A suitable tenant buyer (TB) is someone who will qualify to purchase their own home with a traditional mortgage within 1 – 4 years

• Singles

• Couples

• Young families

• Established families

• Others

RTO PROGRAMS - HOW

WHERE

A suitable home can be purchased almost anywherein the province and country

• City or town location

RTO PROGRAMS - HOW

WHAT

A suitable home for purchase will be

• Your choice

• Quality property

• Single family home

• Suited to current needs

You can be a homeowner with pride of

ownership today

RTO PROGRAMS - HOW

HOW

Alternative financing is used as a solution for home ownership today

• Timeline is according to when you can qualify for your own mortgage

• RTO program is prepared by a trained real estate investor in 8 – 12 weeks

• Details are all carefully explained and agreed in writing using a lawyer

• During the RTO program, the home is owned by a real estate investor

RTO PROGRAMS - HOW

HOW

The same Five Cs are applied differently than the banks, using an agreement to purchase at a future date, with a locked-in price

• Known as “lease with an option to purchase” or “first right of refusal”

• Similar to automotive leasing

RTO PROGRAMS - HOW

HOW

There is usually more than one way of looking at someone’s suitability for home ownership

• See the picture of a man’s profile –which profile do you see first?

RTO PROGRAMS - HOW

CONCLUSION

If you are ready to learn about how a RTO program will meet your home ownership needs, please contact us to start our conversation

If you know of anyone who wants to purchase a home, but does not qualify for a traditional mortgage, or would like to invest in real estate, but doesn't want to be a landlord, we will pay a referral fee if they are successfully established in a RTO program with TuCasa Today

Roy O. Christensen, RET

qualityworks_inc@shaw.ca

403.703.2686