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Rent to Own a Home in Sherwood Park, Alberta

3/11/24
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4
 min read
Rent to Own a Home in Sherwood Park, Alberta
Summary
If you're a considering to move and buy a home in Sherwood Park, Alberta, but the homebuying process can be challenging due to lack of Canadian credit and down payment. That's where Requity Homes comes in - their rent to own program can help you achieve your dream of homeownership
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Rent-to-Own a Home in Sherwood Park, Alberta

Edmonton, Alberta has a delightful community closeby called Sherwood Park. This flourishing neighbourhood, which is a part of Strathcona County, offers a welcoming blend of urban conveniences and the tranquil beauty of a small town. Sherwood Park, which has a population of over 70,000, offers a distinctive combination of opportunities, a strong feeling of community, and easy access to the city of Edmonton.

The economy of Sherwood Park is booming as a result of the presence of numerous industries. The city's thriving job economy is influenced by the healthcare, education, technology, and retail industries. Residents of Sherwood Park have access to a wide range of job options and opportunities thanks to its advantageous position within the Edmonton metropolitan area.

Real Estate Trends in Sherwood Park, Alberta

Knowing the current situation of the Sherwood Park real estate market is crucial for making informed judgments about rent-to-own houses. Let's investigate the housing market's dynamics, giving important details about home prices and the ever-changing levels of supply and demand.

The real estate market in Sherwood Park has a wide range of choices to accommodate different tastes and price ranges. You can find a perfect alternative whether you're looking for a cozy townhouse, a large family home, or something in between.

This community comprises numerous smaller neighborhoods, each with its unique charm, catering to various lifestyles. Educational excellence is a priority with the presence of New Horizons Charter School for gifted children. Proximity to Edmonton ensures easy access to jobs and education.

Sherwood Park's housing supply is still rather limited at 131 new listings as of August 2023, a tendency that is shared nationwide. The constrained housing inventory has led to an increase in home prices. Data from zolo.ca indicates that the average price of a detached home in Sherwood Park in 2022 was $307,000, marking a year-over-year decline of 25.1%. 

How Does Rent-to-Own Work in Canada?

Rent to own program is an innovative solution for those who want to own a home but are not able to qualify for a mortgage. It provides a unique pathway to homeownership that is ideal for those who may not have a significant down payment, a high credit score, or a stable income.

The unique rent-to-own concept of homeownership allows you to rent a home with the intention of purchasing it at the end of your contract. This plan attempts to bridge the gap for prospective homeowners who face obstacles like a lack of Canadian credit history, poor credit, a low income, or the issue of saving for a sizeable down payment. 

An illustration of how the finances for a rent-to-own scenario may look is as follows:

Approved Home Purchase Price: $250,000

Initial Down Payment: $250,000 x 2% = $5,000

Monthly Payment: $2,356 (Rent: $2,093 + Savings: $263)

Cumulative Savings: $5,000 + ($263 x 36 months) = $14,468

Buy Back Price After 3 Years: $289,406

What are the Benefits of Rent-to-Own?

1. Easy Access to Homeownership

Renting to own can be a great choice if you're not quite ready to buy a home but still want to go on the property ladder. Obtaining a mortgage approval can be difficult, particularly if you have poor credit or insufficient funds for a down payment. Renting to own enables you to accumulate equity in the property while you do so and get ready to buy it.

2. Option to Try Before You Buy

You can test out a house before you decide to buy it by renting to own it. Before making a purchase, you may make sure the house lives up to your expectations and is a good fit for you and your family.

3. Fixed Price and Terms

The opportunity to lock in the price of the home and the rental terms is one of the biggest advantages of renting to own. As a result, the price of the house and your monthly payments are rather predictable.

4. Credit Improvement

Your credit score can rise if you rent to own. When the rental agreement is over, it will be simpler to get a mortgage if you pay your rent on time and in full. This will also help your credit score.

If you're ready to take the next step towards homeownership, Requity homes might be a best option to help get you and your family into homeownership sooner than you could have ever imagined.  Get pre-qualified and start your homeownership journey today >

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