Frequently Asked Questions
Q: What kind of properties do you sell on Rent-to-Own?
A: Single detached homes, duplexes, townhouse and condos. We do not sell mobile homes, floating homes or other non-conforming types of real estate.
Q: Where do you Buy homes for Rent-to-Owns? Do you have houses available in the Interior or on Vancouver Island?
A: For our residential Rent-to-Own program, we primarily service only Vancouver lower mainland and the Fraser Valley
Q: What will happen to our initial deposit and rent credits if we can’t complete the transaction?
A: It is our intention at Tuza to do whatever it takes to help you take ownership. With our association with leading mortgage brokerage firms we will look at all avenues to help you complete. Our associated mortgage brokers work with several banks, trust companies, life insurance lenders, credit unions and private investors. If required, Tuza may help you with secondary mortgage financing.
If however, after all possible avenues have been looked at and you’re still not in a position to qualify for whatever reason. We may consider an extension of the contract for an additional term that we all agree on. If this also fails to work you would lose all of your deposit and monthly rent credits you have built up.
If you wanted out of the contract early and we are given few months notice and if the property is returned to us in the same condition or better as when you received it or if you find someone to take your place we would be very accommodating and will help you to recover some or all of your investment.
Q: When is the purchase price set?
A: At time of negotiations before you move in. The purchase price of your home is set today for future purchase. The term of the Rent-to-Own agreement is also determined at this same time.
Q: Why Rent to Own instead of waiting until I can qualify for a mortgage?
A: That is a decision you have to make. Some analysts have suggested that the long term trend especially here in the Vancouver Lower Mainland is for a higher price level considering that by 2025 it is estimated to be another 1 million residents living here.
There may be several reasons why you don’t qualify for a mortgage at the present time. Many of our clients have been renting for years and can never find a way to get themselves off the renting treadmill. With our creative financing techniques, you accumulate your required down payment. You also have the professional consultation of the Tuza staff to put yourself in a strategic financial position. In association with our team member of a leading mortgage brokerage firm, you can develop a mortgage strategy that will work for you.
Some of the questions to be asked is how can we improve your credit rating? Do you need to apply for an RRSP loan to further establish credit and take advantage of tax benefits? Does your outstanding credit have to be refinanced? What about your job and your employment income? What further action can be taken to increase your down payment if possible? These are just some of the issues to be looked at.
Q: How long will my Rent-to-Own agreement last?
A: Rent-to-Own agreements are based on your financing needs, but anywhere from 1 to 5 years. We structure our agreements so that you can complete the purchase at any time during the term by simply advising us. We will do the rest to complete our agreement with you as quickly as you want us to do it.
Q: What if we can’t qualify for a mortgage at the end of the term?
A: Our goal is for you to buy the home. We do not want to get the house back. We will do our best to extend the Rent-to-Own Agreement or work out an alternative solution to meet your needs. However, if you feel that you may not be able to qualify in the number of years allotted, then Rent-to-Own may not be the solution for you.
Q: No one I know has ever heard of this before, is this legal or what?
A: During the last 10 years or so, Rent-to-Own has become very popular in the residential real estate market. Rent-to-Own is now an agreement used all across Canada including the Lower Mainland here in British Columbia. As for Tuza, we are part of a Team of people who specialize in creative real estate solutions for Buyers and Sellers alike. Tuza has been doing Rent-to-Own agreements since 2007.
Q: Does making a larger monthly payments help me?
A: The more equity that you have in your new home, the better chance that you have in obtaining a conventional mortgage from a bank or other lending institutions and at preferred interest rates. The higher payment you make in excess of your “Base Payment”, the greater down payment credits you will accumulate towards purchase of your home.
Q: What if I want to pay down a lump sum, can I do that?
A: There are no penalties or additional fees if you want to make a balloon or lump sum payment at any time during the Rent-to-Own Agreement. You may do so and it will go directly to your equity.
Q: Can I take ownership of the property before the end of the term?
A: YES! If you are ready to qualify for a mortgage during the term of your Rent-to-Own contract, you can exercise the option to purchase and take title to the property. In some cases, some of our clients have paid full in cash due to an unexpected inheritance or other goodwill ie. bonus from work, investment, lottery winnings.
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