Rent To Own
Call us! (604) 209-7400
Rent To Own
ZuZu Properties’ Rent to Own program is designed to help people who have difficulty qualifying for a traditional mortgage.
If you’re motivated, have a solid source of income, and are ready and willing to build a financial plan for success, ZuZu Properties can help you achieve your dream of home ownership.
Why We Do This
If we can help even a few people realize their dreams of home ownership, we will have done something worthwhile. We recognize that traditional mortgage qualifications, while serving the needs of the banks, often exclude people who have the financial capacity to own a home – and who have the dream of home ownership.
How It Works
Self-employment, recent arrival in Canada, insufficient down payment, and past professional or personal bankruptcy are not barriers to home ownership through this program.
We have a rigorous assessment process, ensuring that you and our investors feel confident at every step.
We work with you to create a financial action plan with specific goals and commitments to improve your credit rating and ensure your success.
Together, we find a house you love. We might have a property that matches your needs, or you could find a house for sale that we may be able to acquire such that we can enter onto a lease and option agreement with you.
Your initial option fee payable to us is just three to five percent of the purchase price (much less than a traditional mortgage). Monthly option payments will be credited towards the purchase price once you have exercised your option to purchase.
By the end of the one- to three-year rental term, you’ll have accumulated the full down payment. In fulfilling the goals of your financial plan, you’ll have achieved a solid credit rating. You’ll be ready to enter into a conventional mortgage agreement and realize your home ownership dreams.
To learn more, contact us. (604) 209-7400
Frequently asked questions
What does “Rent-to-Own” really mean?
ZuZu Properties Ltd. Rent-to-Own program is a pathway to home ownership for those who don’t qualify for a traditional mortgage. We help you put together a plan to improve your credit score, and you’ll build your down payment through your monthly lease and option payments (a portion of each month’s payment goes to your option account which is used towards your down payment on successful completion of the program).
When faced with issues such as previous bankruptcies or foreclosures, recent immigration into Canada, self-employment, and other barriers to obtaining a traditional mortgage, this option can help you own your home more quickly than is generally possible working on your own.
Why would you give someone with bad credit this sort of opportunity?
We believe in the dream of home ownership, and we recognize that there are many people who have the desire, commitment, and income to purchase a home, but who may not qualify for a traditional mortgage.
We screen all our Rent-to-Own applicants carefully. We want you, as a Rent-to-Own candidate, to feel comfortable making the financial commitment, and we want our landlord / homeowners to be assured that their property is safe.
Why is Rent-to-Own better than just waiting till I can qualify for a regular mortgage?
Our Rent-to-Own program supports you in the steps you need to take to build your credit rating and your down payment. We have experience in assisting you in customizing financial plans to help create the conditions for your success in ways that are difficult to achieve on your own. Plus, you’ll be living in the house that you’re planning to purchase!
Do I get to choose the house I want?
Yes. We may have a property in our inventory that fits your requirements, or you can work with one of our real estate professionals to find a property that you love.
When will I actually own the house?
You’ll own the house at the end of the rental term when you complete the process of applying for and receiving a traditional mortgage and you exercise your option to purchase the house.
Who takes care of maintenance – the yard, any repairs, that sort of thing?
You are responsible for all maintenance, just as when you purchase a home outright.
You say you help create a financial plan. Do you watch over me to see if I’m fulfilling its requirements?
We like to build relationships with our tenant buyers throughout the course of the Rent-to-Own program. We work with qualified mortgage brokers to develop your financial plan, and we stay in touch with you to make sure the plan is working for you. Of course this is ultimately your responsibility, but we want you to be successful in achieving your home ownership dreams.
I’ve heard of something called an “option fee.” What is that, and will I need to pay it?
An option fee gives you the right to purchase the property at a pre-defined price and at a specified time. If you do not exercise your option to purchase you will lose any amounts paid. You are not obliged to complete the purchase but ZuZu Properties Ltd. or affiliate is obliged to sell the property. If the value of the property if higher than expected, you keep the difference in your favour. If the value of the property is lower, you have the option to walk away.
The option fee will act as your initial down payment (two to five percent of the final purchase price, in some cases more, which is much less than required in a traditional mortgage agreement) if you exercise your option to purchase.
This option fee is the seed money for your final down payment at the end of the Rent-to-Own term. In addition to your monthly rental payment there will be an additional monthly option payment which will be credited towards the purchase price if you exercise the option. We also include additional funds to cover your closing costs at the end of the program so you don't get caught short.
What are the benefits?
You will be on a “fast track” to home ownership, accumulating your down payment and repairing any gaps in your credit rating while already living in the home you’ll purchase at the end of the agreement.
You choose your house; there are no bank qualification requirements until the end of the program; you need only a minimum cash up front; you’ll accumulate monthly credits towards your home; and you lock in a guaranteed purchase price with fixed monthly payments and no obligation to purchase if circumstances change.
What are the risks?
There is no guarantee that a bank will offer you a mortgage at the end of the program. It’s up to you to work with the plan developed to improve your credit score. Everyone’s situation is uniquely different. Working closely with us and one of our qualified mortgage brokers is key to achieving success. If something changes, we need to know as quickly as possible so we can make the necessary adjustments.
What are the financial requirements to qualify for this program?
An option consideration is required to get started – typically 3% to 5%, some properties may require more, of the final purchase price (significantly less than when applying for a traditional mortgage). You must be able to demonstrate that you have a steady source of income to enable you to make monthly payments. Your income will help determine how much of a mortgage you can take on at the end of the term, and subsequently how much you will have to purchase your new home.
Can I make changes to the house and yard – repainting, new carpet, remodeling, landscaping – before the rental term is over?
Yes, we want this to be your home, and we therefore encourage you to make cosmetic changes so that you feel comfortable with your new home.
Anything that alters the structure of the house or significant landscaping changes needs to be approved by us in advance. Please note that some changes will require permits from the municipality. Any request shall not be unreasonably withheld.
Who pays for utilities – water, electricity, and so on?
You are responsible for all utility payments, phone and cable just as when you purchase your own home. In addition you will also requite tenant insurance to protect your personal property.
What if I’m ready with a down payment and I can qualify for a conventional mortgage early? Are there penalties if I want to wrap up ahead of schedule?
There are no penalties for early completion with the exception of any fees imposed by the mortgagor of the property. We encourage you to realize your home ownership dreams as quickly as possible!
Why is your screening process so strict?
We believe in in what we do. By not being diligent up front we are not doing our job and setting you up for the success you deserve. We are only interested in working with persons that are serious about home ownership and are willing to contribute towards their dreams. It is not always going to be easy but we believe it will certainly be rewarding at the end.