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Sudbury is one of the largest urban areas in northern Ontario and the third-largest French-speaking population in Canada outside of Quebec. If you’re looking for a place to call home in this great area, the rent-to-own option is excellent for working towards homeownership.
Sudbury, Ontario, is well known for its mining industry, including two mills, a nickel refinery, two smelters, and nine mines in operation today. The city is located in the Greater Sudbury region, which includes more than 300 lakes. The scenery alone is any outdoor enthusiast’s dream and boasts many opportunities for activities.
While Sudbury is a great place to live and work, the cost of buying a home has steadily increased in recent years. Many residents from larger cities move to Sudbury and other northern cities only to find that the cost of purchasing a home is out of their reach.
This situation might be further challenged with a change in income, personal circumstances, or difficulty affording a down payment. In this case, renting to own your home can be a great option to consider if you can’t get approval for a mortgage and want to move away from a lease and achieve the goal of homeownership.
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 non-refundable deposit is often required upfront, in most cases, along with the deal, which is applied towards the final asking price of the home. In some cases, the contract will allow this amount to be a down payment to purchase the house.
● A part of the monthly rental payments, in addition to the initial fee, is applied to the mortgage. When the lease agreement reaches the end of the term, the tenant can decide whether they want to purchase the home.
Sudbury is a growing urban center that provides many features that are perfect for settling into a new home. It’s the ideal place for anyone looking for new employment and business opportunities, as well as professionals, couples, families, and retirees.
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 or condo 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 Sudbury, Ontario. Contact Requity Homes by phone or via the firm’s website, where you can apply directly online, and consult with our specialists to determine what you’ll need to qualify for a rent-to-own agreement.
