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If you’re thinking about settling down somewhere in the Canadian province of Ontario, you’ll want to make sure you’re making the right decision.
Thunder Bay is one of the most beautiful cities in Ontario. Property prices can be somewhat high in certain areas, which is why so many buyers choose the rent-to-own option instead of purchasing them outright.
Here’s what you need to know about rent-to-own homes in Thunder Bay.
Before diving into the mechanics of renting to own in Thunder Bay, let’s discuss the city itself. Why is Thunder Bay such a great place to live? As a picturesque waterfront community, you’ll find that you can peacefully enjoy the scenery of this location and be able to escape the big city life. The vast and beautiful Lake Superior is one of Thunder Bay’s main draws, as it is the largest lake in the world. The city is also home to Lakehead University, a highly respected university known for its excellent student atmosphere.
You will find that Thunder Bay is a fantastic place to live, whether you’re a single person or if you’re starting a family. The city focuses on community development with many outdoor, recreational and arts activities throughout. This includes skiing, canoeing, and hiking on popular trails such as Kakabeka Falls.
As the cost of buying a home continues to increase, many people are choosing the rent-to-own option as a popular alternative to traditional home buying. There are a few essential items to get familiar with before you sign an agreement:
● The rent-to-own agreement is between a homeowner and tenant, which begins as a lease, with the option to buy the home later. This lease agreement is usually for a term of no more than three years.
● A deposit is often required upfront, in most cases, along with the deal, which is applied towards the final buyback price of the home.
● A part of the monthly rental payments, in addition to the initial deposit, is credited towards the final buyback price. When the lease agreement reaches the end of the term, the tenant can decide whether they want to purchase the home.
When you’re not in a financial position to afford a down payment on a new home or do not qualify for a mortgage, there are some benefits you’ll find with the rent-to-own option:
● You’ll have the option of "testing” a new home and deciding if homeownership is the best option for you. Initially, many people might buy a home with aspirations of renovations or creating a home office or nursery only to discover they need more space. When you choose the rent-to-home option, you’ll have the benefit of living in a house before deciding if it’s a good fit for you and your family.
● When you sign a rent-to-own agreement, you’ll have the opportunity to save enough money towards the eventual purchase of a home. During this time, you might have access to increased income because of a new employment opportunity or other revenue, which can help you save towards the eventual purchase of the home.
● If you have a poor credit score, you can work on improving your rating so you qualify in a few years after you sign a rent-to-own agreement.
● Unlike a traditional lease or rental agreements, you’ll have more freedom to renovate and decorate your home without the restrictions that are often included in a rental contract.
Suppose you’re reviewing the benefits and challenges of a mortgage versus a rent-to-own agreement. In that case, it’s essential to consider your personal, financial, and other circumstances to determine which option is a better fit for your life.
In some cases, individuals or couples might consult with a real estate agent or mortgage specialist to assess if they’re in a financial position to afford a mortgage, which can determine whether rent-to-own is a better option.
Mortgages offer benefits for those who qualify, including building equity in your home and enjoying an increase in value, which steadily climbs with time. You must be in an excellent financial position to qualify for a mortgage, which is one hurdle many people find difficult, especially if a down payment or mortgage payments are not affordable.
Rent-to-own works best for people who want to eventually purchase a home, though they cannot make the financial commitment or meet the criteria required for a traditional mortgage.
While many financial experts recommend a mortgage as the best option, it’s not always attainable, making rent-to-own agreements an excellent path towards homeownership.
When you’re in a position to buy your home, there are some excellent benefits. These include the option of building equity, which can offer you some great benefits in the long term, such as access to loans and extra funds for renovations, debt consolidation, and additional revenue if you choose to sell the home at a later date.
Find out if you qualify for a rent-to-own home in Thunder Bay, Ontario. Contact Requity Homes by phone or via the website, where you can apply directly online to see if you are qualified for our rent-to-own program.
