What is Requity Homes?
Our mission at Requity Homes is to create a fair and flexible alternative path to homeownership through our modernized rent-to-own program. We help renters move into their dream home today, build their credit and down payment every month and sell the home back to them at a predetermined price.
At Requity Homes, we believe homeownership should be more accessible.
Is this a loan/mortgage?
No! Requity Homes is not a lender and we’re not trying to replace mortgages. Instead, our program helps you prepare and get ready to obtain a mortgage within 2-3 years.
Who is it for?
Requity Homes’ rent-to-own program is ideal for aspiring home buyers who aren’t mortgage-ready today due to fair credit score, being self employed, new to the country and/or lack of 20% down payments.
Check out Amanda and Brad's home buying journey
with Requity Homes.
How does it work?
Our modernized rent-to-own program allows you to try before you buy a home. We will purchase the home of your choice upfront. You can move in today, start saving and getting ready for a mortgage. When you’re ready, you can buy back the home from us at a predetermined price. Here is how it works in detail:
Step 1: Get prequalified with us online. It’s easy, fast and won’t affect your credit score. This helps us assess your eligibility and your recommended home shopping budget.
Step 2: Home shop: Once you are fully approved, you will work with our partner realtors or your own to find your dream home within your buying power;
Step 3: We buy, you rent: We will put in the offer to purchase your dream home upfront. You can move in today, rent the home from us on a fixed monthly payment, a portion of which is extra savings you put aside that will help you build up your down payment over time
Step 4: Buy-back: When you’re mortgage ready, you can buy back the home at the pre-set price from us or walk away and cash out your savings.
Where does Requity Homes operate?
We are currently live in Northern Ontario including Thunder Bay, Sault Ste. Marie, Sudbury and North Bay. We’re actively looking to expand to other cities throughout Canada. Please contact us at email@example.com to request a new city expansion and/or sign up to receive notifications.
How long does the process take?
It varies from a couple of weeks to a couple of months. We will get back to you on your full approval result within 1-3 business days after receiving your supporting documents. However, it’s difficult to predict how long it will take you to find the right home for you. In general we recommend you to budget 30-90 days from the time you are fully approved to when you're able to move into your new home.
How do I qualify for Requity Homes?
You can get pre-qualified online on our website. It’s easy, free and won’t affect your credit score.
Here is a list of general requirements:
- A minimum credit score of 550: all applicants need to meet the minimum credit score. We will review your credit report in detail including your total debt outstanding and recent loan delinquencies.
- At least one family member is currently employed full time or have other sources of steady income
- A minimum household income of $50,000 annually or $4,200 monthly: You can add a co-applicant in your application if the co-applicant will be living in your home with you and is over 18 years old.
- Savings: 2-10% of the initial home price. We will evaluate each application on a case by case basis. The exact down payment will be confirmed during your full approval.
- Not currently in a bankruptcy or consumer proposal
What income documents are required to get fully approved?
Depending on the type of income, we will ask for different supporting documents to verify your income. Our goal is to make sure you can afford rent-to-own payments during the lease term.
Traditional employment (Hourly, Salaried or Commission)
- Employment letter
- Most recent pay stubs
- Notice of assessment from the last two years
- Bank statements for the past 6 months
- T1 general tax returns
- T2 corporate tax returns
- Notice of assessment from the last two years
- Personal & Corporate bank statements for the past 12 months
Pension & Disability Incomes
- Proof that such payments are expected to be longer than three years
- Proof that such payments have been made consistently in the past 6 months
How much does the program cost?
It is free to apply for our rent-to-own program.
What happens after I get pre-qualified?
We'll provide you with an estimate of your recommended home shopping budget and connect you with our experienced partner realtors to start searching for your dream home.
What homes are eligible for the Requity Homes program?
We can purchase almost any homes listed for sale publicly or privately in the areas we operate. Here is a list of specific requirements:
- Condition - The home needs to be move-in ready. We cannot purchase any homes if it’s not habitable.
- Type of homes: freehold single-family homes and townhouses
- Areas - We operate in Northern Ontario currently in four cities: Thunder Bay, Sault Ste. Marie, Sudbury and North Bay.
- No rural properties
- No leasehold or modular homes
- Homes have to be on municipal water and sewerage
- Home price range: $150k-$400k
Once you've been qualified and we've identified how much you can afford, you can start visiting places with one of our partner agents or your own realtor.
Do I need to have a real estate agent?
No! You don’t need to. We can refer you to our partner realtors to help you find your dream home. That being said, if you have a realtor you’d like to work with, that is totally fine.
Who is responsible for closing costs related to the home purchase?
Requity Homes is responsible for all of the costs associated with the initial home purchase.
However, you will be responsible for closing related costs when you decide to buy the home from us.
How does the purchase process work?
We understand buying a home is a big decision and the process can be stressful. We will always aim to support you along the way. Here is what you can expect once you find a home that you’d like to put an offer:
- Our team will work with you and your agent to set on our bidding strategy and the maximum price we are willing to bid.
- We will reach out to you to get your consent on our bidding strategy and price.
- Once we get your consent in writing, you will be required to put a deposit of $5,000 so that we can move forward and present our offer to the seller;
- Once our offer is sent in, we expect to hear from the seller within 24 hours and sometimes we may need to negotiate with the seller through the process.
Once your offer is accepted, our team will arrange the inspection of the home to make sure that there are no surprises. This process is pretty standard and usually takes less than 10 business days.
Assuming we are happy with the home condition, we will waive our condition and the deal will become firm. You will wait for the closing date of the home (usually 1-2 months from the offer acceptance date) when you can move into your new home.
How do you decide on the purchase price?
We look at comparable properties and recent sales in the area to determine the fair market value of the home.
We will always aim to make a competitive offer to help you win the home. However occasionally properties will receive offers well above the fair market value. In order to protect you and ensure you are able to buy back the home in the window you desire, we will have to pass on these opportunities. This is a normal part of any home buying process.
Am I guaranteed to win the home we made a bid on?
Unfortunately, we cannot guarantee that our offers will always be accepted by the sellers. Home purchasing can be very competitive. As a disciplined partner, we want to make sure that we are not over paying for each home, which will impact your monthly payments and future buy back price.
We understand the stress and frustration that may come from the offer bidding process. We will always ask for your approval before we bid on any homes. Keep in mind, it’s possible that we may need to make a couple of offers before we can help you secure a home.
Do you perform a home inspection?
Yes, a home inspection is required to make sure that we know the condition of the home that we’re going to purchase and if there are any major repair & maintenance issues. It’s a critical part of the home purchase journey.
We may walk away from the home if there are any major issues identified during the inspection.
What happens if major repairs or concerns are identified during the inspection?
If we identify any major repairs around the structure and liability of the home, we will not be able to purchase the home.
In general, the home has to be habitable and in a good condition. Here is a list of wordings that you should look out for in the listings: “sold as is where is”, “fix-upper”, “TLC”, “handymen special” etc. Usually these homes will not meet our criteria.
Who is responsible for maintenance?
Requity Homes covers any major repairs that impact whether your home is safe and habitable (i.e. roofing, HVAC, etc.). Please note that any repair & maintenance costs incurred by Requity Homes will be added back to your future purchase price because these costs will improve the value of your home. Alternatively, the tenant-buyer can pay the major repair & maintenance in installments.
Requity Homes does not cover minor or cosmetic repairs. We also will not pay for repairs required as a result of any intentional damages or negligence.
How much is my monthly payments?
It depends on your home value and your savings goal towards the end of the lease term. The greater the home value, the higher the payments will be.
Who is responsible for property taxes, utilities and insurance costs?
We are responsible for property taxes and landlord’s insurance. You will be responsible for utilities, your tenant insurance and snow removal/lawn care.
Could you report my rent payment to help improve my credit?
How can I buy back the home?
Anytime throughout the lease term, you have the option to buy back the home at the pre-agreed price. You will need to get a mortgage from a lender or cash to buy back the home from us.
What if I walk away from the buy back, what will happen to my savings?
You can cash out your savings at any time after your lease term and will get a full refund minus administrative fees.
How quickly can I cash out?
After you initiate the cash out process, we will list the property for sale on the market or find a replacement tenant. We guarantee you will get your money back within 90 days of you moving out the home.