Business owners who overcome mortgage challenges of entering homeownership in Sault Ste. Marie
Rent-to-own homes in Canada allow you to rent a property with the option to purchase it later. For buyers who need more time to save a down payment, establish Canadian credit or document their income, this approach provides a way to move into a home while preparing to buy it.
The arrangement gives your homeownership plans a specific destination. You select an eligible property, agree on the purchase terms and work toward financing the home during the rental period.
This guide explains how rent-to-own works in Canada, what you need to qualify, how payments are structured and what to consider when choosing a program.
What is rent-to-own in Canada?
Rent-to-own combines a rental arrangement with the opportunity to purchase the property under agreed conditions. It is also commonly described as lease-to-own or rent-to-buy.
During the rental period, you live in the home and prepare for the eventual purchase. Depending on the agreement, your payments may include a designated savings contribution or credits toward buying the property.
With Requity Homes’ rent-to-own program, you choose a qualifying home within your approved budget. Requity purchases it, and you move in as a tenant. Your monthly payment includes rent and a separate contribution toward your future down payment.
Ownership transfers to you when you complete the purchase.
How does rent-to-own work in Canada?
Rent-to-own programs in Canada have different eligibility requirements, fees and contract terms. The process generally involves choosing a provider, establishing an affordable budget, selecting a property and preparing to purchase during the rental term.
Here is how that process works with Requity Homes.
1. Establish your eligibility and home budget
Start with a free rent-to-own application. Requity reviews information about your income, savings and financial circumstances without affecting your credit score during pre-qualification.
You then provide the documents needed for full approval and confirmation of your home shopping budget.
2. Choose a qualifying home
You can work with a partner realtor or your own agent to find a property within your approved budget.
The home does not need to be advertised as rent-to-own. Requity can purchase an eligible property listed for sale and create the rent-to-own arrangement with you.
3. Review the agreement and make your initial deposit
Your agreement sets out the monthly rent, savings contribution, purchase price schedule, program term and other responsibilities.
Requity’s minimum initial deposit is 2% of the purchase price or $5,000, whichever is greater. Your approved terms may require a larger deposit.
4. Move in and prepare for your purchase
After Requity purchases the property, you move in and begin making the agreed payments.
During this period, you build down payment savings and address the requirements for your future mortgage. That might involve reducing debt, strengthening your credit history or establishing a longer record of business income.
5. Buy the home when you are mortgage-ready
Requity’s standard program term is up to three years, with the opportunity to purchase earlier once you qualify for financing.
Your accumulated deposit and savings contribute toward your down payment when you complete the purchase.
Understanding rent-to-own agreements in Canada
A rent-to-own agreement should explain how you can purchase the property, what you must pay and what happens if the purchase does not proceed.
The Canada Revenue Agency distinguishes between arrangements involving a binding purchase agreement and rental arrangements that include an option to purchase. Understanding that distinction helps you identify the commitment you are making.
Lease-option agreements
A lease-option arrangement gives you the right to purchase the property under specified conditions, without necessarily obligating you to buy.
Having a purchase option does not mean you can end the lease early without costs. Your rental obligations, deadlines, fees and treatment of savings still depend on the agreement.
Lease-purchase agreements
A lease-purchase arrangement includes a commitment to buy the property. If you cannot complete the purchase, the consequences depend on the contract and applicable law.
The wording matters more than the label. Have a real estate lawyer review the rental and purchase documents together before signing.
Terms to review
Your agreement should clearly address:
- Initial payments: What you pay upfront and whether it contributes toward your purchase.
- Monthly payments: The amounts allocated to rent and savings or purchase credits.
- Purchase pricing: The agreed price or formula used to determine it.
- Timing: When you can purchase and the deadline for exercising your option.
- Property responsibilities: Maintenance, repairs, taxes and insurance.
- Changes in circumstances: What happens if you miss a payment, cannot obtain financing or decide not to buy.
Read more about rent-to-own agreements and contract terms.
How to qualify for rent-to-own in Canada
Qualification requirements depend on the provider. There is no single credit score, deposit or income requirement that applies to every rent-to-own program in Canada.
For Requity Homes, the starting requirements include:
- Credit score: At least 500 for all applicants.
- Income: At least one applicant with full-time employment or steady, verifiable income.
- Initial deposit: At least 2% of the purchase price or $5,000, whichever is greater.
- Debt status: No active bankruptcy or consumer proposal, and no unpaid collections or defaulted debt with an outstanding balance.
Minimum household income varies by location. Requity’s published thresholds range from $50,000 in Winnipeg, Brandon and Steinbach to $120,000 in Calgary and Airdrie.
Your approved budget depends on the complete application, including your income, existing obligations and savings. See the current rent-to-own qualification requirements.
Who might benefit?
Rent-to-own can suit people who can afford the program payments but need additional preparation before purchasing:
- Newcomers to Canada: Households establishing Canadian credit and financial records.
- Self-employed applicants: Business owners and independent workers building the income documentation needed for a mortgage.
- First-time buyers: Applicants still accumulating their down payment.
- People rebuilding credit: Households demonstrating stronger financial habits after earlier difficulties.
What types of homes qualify for rent-to-own?
Property eligibility varies between rent-to-own companies in Canada.
Requity generally considers move-in-ready freehold single-family homes and townhouses that:
- Fall within your approved budget and the program’s $150,000 to $600,000 price range.
- Have municipal water and sewer connections.
- Are located in an eligible community.
- Meet the program’s condition and inspection requirements.
Some newly built condo townhouses may be considered individually. Rural properties with wells or septic systems, fixer-uppers and homes with significant structural or safety concerns do not meet Requity’s standard requirements.
Review the eligible property criteria before arranging viewings.
How much does rent-to-own cost in Canada?
The cost depends on the property, provider, initial deposit, savings target and purchase timeline. A useful comparison looks at the entire arrangement, including upfront payments, monthly costs and the eventual purchase price.
Initial deposit or option fee
Providers use different terms and structures for upfront payments.
An option fee may pay for the right to purchase later, while a deposit may contribute toward the future down payment. Confirm how the payment is treated and what happens to it if you leave.
With Requity, the initial deposit contributes toward your future down payment.
Monthly rent and savings
Requity’s monthly payment combines rent with a separate savings contribution.
The rent covers your accommodation. The savings contribution builds funds for your future down payment. These savings do not make you the property owner during the rental period.
Use the rent-to-own payment calculator to estimate payments based on your circumstances.
Future purchase price
Requity establishes its base buyback pricing using the initial purchase price plus a 5% annual increase, agreed at the start of the program.
This provides a known pricing schedule. It does not guarantee that the purchase price will be below the property’s future market value. Any adjustments permitted by the agreement, including applicable repair costs, should also be understood before signing.
Other housing and purchase costs
Budget for utilities, tenant insurance and the maintenance responsibilities assigned to you.
When Requity initially purchases the property, it covers its closing costs, including legal fees, title insurance and applicable land transfer tax. You pay for the inspection.
When you later purchase the home from Requity, you are responsible for the closing costs associated with your purchase.
Is rent-to-own a mortgage alternative in Canada?
Rent-to-own offers an alternative way to begin the homebuying process before you qualify for a mortgage.
With an immediate purchase, you need financing in place before closing. With rent-to-own, you move into the home first and use the rental period to prepare for the purchase.
Most participants still obtain a mortgage when they buy the property. The advantage is having time to work toward that financing while living in the home they intend to own.
If you are comparing renting versus buying a home in Canada, consider how each option supports your goal:
- Traditional renting: You pay for accommodation and arrange your savings and future property search independently.
- Buying with a mortgage: You purchase now, subject to meeting the lender’s requirements.
- Rent-to-own: You establish a future purchase arrangement while renting and preparing financially.
Learn more about rent-to-own versus a traditional mortgage.
Advantages and disadvantages of rent-to-own in Canada
Advantages of rent-to-own
Move into a home you intend to purchase. You can choose a qualifying property before you are ready for mortgage approval.
Give your savings a clear target. Regular contributions support a down payment goal tied to a specific home.
Establish purchase terms in advance. Your agreement explains the pricing schedule and timing for buying the property.
Prepare while remaining in one place. You can work on your finances without postponing your move or planning another relocation when you buy.
Build payment history. Requity reports rental payments to credit bureaus such as Equifax at no additional charge. Consistent, on-time payments can help establish positive payment history.
Costs and limitations to consider
Monthly payments include savings. Compare the full payment with your budget, rather than looking only at the rent component.
Mortgage approval remains a separate step. Completing the rental period does not automatically qualify you for financing.
The agreed price may exceed future market value. Market conditions can change while your contractual pricing schedule remains in place.
Leaving may involve fees. Refunds and deductions depend on the provider and agreement.
Property responsibilities vary. Understand which repairs and maintenance costs you must handle and whether any costs can affect your buyback price.
Rent-to-own programs in Canada
Rent-to-own arrangements may be offered through companies that purchase a home for an approved applicant or through property owners offering purchase terms directly.
A managed program can bring the application, property review, savings schedule and purchase process together. A private arrangement requires the renter and owner to establish those details in their contracts.
Requity Homes’ rent-to-own program
Requity Homes operates in eligible communities across Ontario, Alberta, Saskatchewan and Manitoba.
The program allows approved applicants to choose a qualifying home for Requity to purchase. Participants then rent the property, build down payment savings and prepare to buy within the agreed term.
Start with the rent-to-own affordability calculator, or read how Requity Homes works.
How to assess rent-to-own reviews in Canada
When comparing rent-to-own companies in Canada, reviews can help you understand how a provider communicates and supports clients throughout the process.
Look for accounts that explain:
- The application experience: Whether eligibility and costs were explained clearly.
- The rental period: How payments, savings and property issues were handled.
- The purchase process: Whether the reviewer completed a buyback and how that experience unfolded.
- Changes in plans: How the provider applied the agreement when circumstances changed.
Consider independent reviews alongside customer stories and the written agreement. A positive move-in experience and a completed home purchase describe different stages of the program.
You can also ask a provider to explain its fees, savings records, purchase requirements and exit terms before applying.
Where to find rent-to-own homes in Canada
Requity’s location pages can help you begin your property search. Homes must meet both the program criteria and your approved budget.
Rent-to-own homes in Alberta
- Rent-to-own homes in Airdrie
- Rent-to-own homes in Beaumont
- Rent-to-own homes in Blackfalds
- Rent-to-own homes in Calgary
- Rent-to-own homes in Camrose
- Rent-to-own homes in Chestermere
- Rent-to-own homes in Clairmont
- Rent-to-own homes in Coaldale
- Rent-to-own homes in Cochrane
- Rent-to-own homes in Edmonton
- Rent-to-own homes in Fort McMurray
- Rent-to-own homes in Fort Saskatchewan
- Rent-to-own homes in Grande Prairie
- Rent-to-own homes in Lacombe
- Rent-to-own homes in Leduc
- Rent-to-own homes in Lethbridge
- Rent-to-own homes in Medicine Hat
- Rent-to-own homes in Okotoks
- Rent-to-own homes in Penhold
- Rent-to-own homes in Red Deer
- Rent-to-own homes in Sherwood Park
- Rent-to-own homes in Spruce Grove
- Rent-to-own homes in St. Albert
- Rent-to-own homes in Stony Plain
- Rent-to-own homes in Westlake
Rent-to-own homes in Ontario
- Rent-to-own homes in Azilda
- Rent-to-own homes in Belleville
- Rent-to-own homes in Brockville
- Rent-to-own homes in Chatham-Kent
- Rent-to-own homes in Chelmsford
- Rent-to-own homes in Clarence-Rockland
- Rent-to-own homes in Cornwall
- Rent-to-own homes in Fort Erie
- Rent-to-own homes in Greater Napanee
- Rent-to-own homes in Hanmer
- Rent-to-own homes in Kingston
- Rent-to-own homes in London
- Rent-to-own homes in Niagara Falls
- Rent-to-own homes in North Bay
- Rent-to-own homes in Quinte West
- Rent-to-own homes in Sarnia
- Rent-to-own homes in Sault Ste. Marie
- Rent-to-own homes in St. Catharines
- Rent-to-own homes in Sudbury
- Rent-to-own homes in Thunder Bay
- Rent-to-own homes in Val Therese
- Rent-to-own homes in Windsor
Rent-to-own homes in Saskatchewan
- Rent-to-own homes in Martensville
- Rent-to-own homes in Regina
- Rent-to-own homes in Saskatoon
- Rent-to-own homes in Warman
Rent-to-own homes in Manitoba
These searches show properties for sale that can be reviewed for program eligibility.
Frequently asked questions about rent-to-own in Canada
Is rent-to-own legal in Canada?
Yes. Rent-to-own arrangements are used in Canada, including rental agreements with an option to purchase and arrangements involving a binding future purchase.
The enforceability of particular terms depends on the agreement and applicable law. A real estate lawyer in the province where the property is located can review the documents before you commit.
Does rent-to-own still exist in Canada?
Yes. Companies including Requity Homes continue to offer rent-to-own programs. Availability depends on the provider’s service area, property requirements and applicant eligibility.
Is lease-to-own the same as rent-to-own?
For housing, lease-to-own and rent-to-own commonly describe arrangements that allow you to rent a property with an opportunity to purchase it later.
The name does not establish the terms. Check whether the contract gives you a purchase option or commits you to buying.
Is there a government rent-to-own program in Canada?
CMHC previously offered a dedicated Rent-to-Own stream through the Affordable Housing Innovation Fund. That stream funded housing providers developing rent-to-own projects. It has been discontinued and no longer accepts new applications.
Private programs such as Requity Homes operate separately from that funding initiative.
Can I rent-to-own with bad credit?
Some providers accept applicants who do not meet a traditional mortgage lender’s credit requirements.
Requity’s published minimum credit score is 500. Approval also depends on income, debt, deposit and affordability. The rental period provides time to strengthen your finances before applying for a mortgage.
Who pays for maintenance and repairs?
Responsibilities depend on the agreement and applicable provincial rules.
Under Requity’s published terms, clients handle minor and cosmetic repairs, lawn care, snow removal and damage caused by negligence. Requity handles major repairs affecting safety or habitability, with those costs added to the future buyback price or paid in instalments.
What happens if I decide not to purchase?
The outcome depends on your contract.
Requity’s published terms allow you to exit after the initial lease term ends. Your accumulated deposit and savings are returned after deducting a transaction fee equal to 5% of the original home purchase price.
Rent-to-own in Canada with Requity Homes
A home purchase involves more than finding a property you like. It also requires a workable budget, sufficient savings and financing you can qualify for.
Requity Homes brings those preparations together around a home you choose. You can move into an eligible property, make regular down payment contributions and work toward purchasing it under an agreed schedule.
Get pre-qualified for rent-to-own in Canada to find out your potential budget and take the next step toward owning your home.






