Buying a Home: Minimum Down Payment Requirements

It is important to know the financial requirements before making a house purchase. JAAG Properties, a leader in helping people buy homes, stresses the importance of having a good understanding about minimum down payment. This information is essential when you are planning for your ideal house.

How Does the Minimum Down Payment Work?

A minimum down payment is a crucial component of the house-buying process. It is the lowest sum you can pay upfront to get a mortgage. The minimum down payment requirements change according to the loan type and lender. It typically falls between 5 per cent and 20 per cent of the price of the house depending on the purchase price of the house. This down payment affects the remainder of your mortgage agreement by showing the lender you are committed to lowering their risk.

How a Down Payment Influences the Mortgage Rate?

Your mortgage rate is greatly impacted by the minimum down payment for mortgage. Increasing your down payment on a mortgage can be a wise financial decision. Lower interest rates may be awarded to you in addition to lowering the lender’s risk. Conversely, making a smaller down payment results in higher interest rates and the additional expense of private mortgage insurance (PMI). If you default on the loan, this insurance safeguards the lender. As a result, your down payment amount may greatly impact your long-term financial situation.

Saving for your Down Payment When in a Rent-to-Own Agreement

The down payment for a house is different from conventional mortgage agreements with rent-to-own contracts. A percentage of your rent is applied toward the down payment on the property in rent-to-own situations. This can be a fantastic alternative for people who cannot afford to make a sizable down payment upfront.

Why Choose JAAG Properties for Homeownership?

Being able to answer the question, “How much do you need for a down payment?” is a big step toward becoming a homeowner. Potential homeowners are encouraged by JAAG Properties to explore their options, including rent-to-own solutions.

The goal of owning a home can be attainable thanks to these solutions which help you save towards a down payment. If you are considering homeownership, contact JAAG Properties for help navigating the process.

Why Rent to Own When You Can Just Rent?

Renting and renting to own are both valid options depending on your lifestyle and goals, and both have unique benefits. For those who anticipate relocating in the near future, renting may be the preferred option, whereas people who are looking to settle down and make an investment in their future may find what they’re looking for with rent to own solutions.

Renting VS. Renting to Own

Renting involves paying a landlord for the use of their property. Renting to own differs in that you rent your home with the intent to buy it after a set term. Rent to own programs often collect additional funds on top of rent to fund your eventual down payment on the property.

Benefits of Renting


Flexibility is a major advantage of renting. If you need to relocate, or move house, renting allows you to simply give notice and leave within a couple of months. You don’t need to go through the hassle of selling your home.

Lower Upfront Costs

Renting costs less upfront than homeownership because you aren’t responsible for buying the home or maintaining it. Rent is a reliable monthly cost that makes it easier to budget and plan ahead financially.

Benefits of Renting to Own

Builds Equity

Renting to own provides the opportunity to build equity over time, as well as a portion of each rental payment contributes towards eventual ownership of the property. The gradual accumulation of equity can serve as a stepping stone towards financial stability and future investments. As the home value increases, so does your equity.

Potential for Homeownership

Renting to own presents a path to potential homeownership for individuals who may not currently qualify for a traditional mortgage or lack the upfront funds for a down payment. This flexibility opens doors to those aspiring to own a home but facing obstacles in the conventional home-buying process.

Fixed Purchase Price

Having a fixed purchase price agreed upon at the beginning of the rent to own arrangement provides clarity and stability, shielding tenants from market fluctuations and ensuring they have a set goal to work towards throughout the rental period. This predictability can offer peace of mind and help tenants plan for their future housing needs more effectively. You also know the exact amount of down payment that is required to purchase the home at your predetermined purchase price.

Rent to Own Considerations

Financial Considerations

While rent to own programs have an initial deposit, there are also many financial benefits. The rent credits you pay towards your eventual down payment help you practice financial discipline. If you have poor credit or no credit, rent to own solutions give you time to build good credit and allow your score to recover from unexpected expenses.

You’re also building towards a healthier financial future. Rather than paying your landlord’s mortgage, you’re laying the foundation for owning a home of your own and building equity.

Maintenance Responsibilities

The maintenance responsibilities in a rent to own arrangement may vary. Some agreements require tenants to cover maintenance costs, while others set a dollar amount over which the landlord is responsible for maintenance. Read your contract so you can plan accordingly.

Personal Considerations

Consider your long-term goals when choosing between renting vs. renting to own. Is owning a home important to you? Do you like having the freedom to adjust your space to your needs and renovate at will? Do you plan to live in the same place for the foreseeable future? If you plan to settle down, renting to own may help you achieve your dreams of homeownership in a shorter timeframe than buying.

Which Solution is Right for Me?

Renting or renting to own is a personal choice, and what’s best for you will vary depending on your financial situation, priorities, and values. Our experienced advisors can give you expert advice on your options and help you make the choice that’s right for you.

Own Your Home Sooner with JAAG Properties

No matter your situation, you can own your home sooner with our Rent to own program! Apply online today or contact us for more information.

Options for Homeownership with Low Down Payment

Buying a property with a high down payment can be difficult. At JAAG Properties, we remove that stress by purchasing your dream home on your behalf for a three-year term. This allows you to move into your home and start a saving program which will work towards your mortgage and down payment.

How Does a Mortgage Payment Work?

It is important to comprehend how a mortgage payment operates if you are considering buying a house, especially when exploring options for homeownership with low down payment. Mortgages are loans from financial institutions to buy a home. Your monthly mortgage payment includes principal, interest and sometimes property taxes and insurance. This payment often covers mostly the interest, especially in the early years of the mortgage.

Options for a Mortgage with Low Down Payment

In the current market, homeownership with low down payment has grown more alluring, particularly for people who might not have significant funds. For those wondering “can I buy a home with low down payment?,” exploring rent to own programs can be an ideal starting point. Let’s investigate some workable choices.

Rent to Own Programs

Rent to own programs offer an alternative method to become a homeowner with a lower down payment. At JAAG Properties, our Rent to Home Solution is designed to allow you to live in your new home while saving for your full down payment. Requiring just a 3% down payment, our program is perfect for families that have diligently saved for a down payment but require support in qualifying for a conventional mortgage. During the term (about 3 years), you’ll pay for rent, property taxes, property insurance, and a savings credit aimed at helping you accumulate money for a traditional down payment.

Borrowing Money from a Family Member

Securing a mortgage through a family loan can bypass the need for a down payment. These loans often feature lower to no interest rates and flexible repayment terms, making them more favourable than conventional loans. It’s crucial to formalize this arrangement in writing to avoid misunderstandings.

Why Rent to Own Could Be Your Home-Buying Solution

Although there are other ways to become a homeowner with a low down payment, rent to own programs are particularly advantageous. This solution makes it easier to become a homeowner while allowing you to build equity over time. Rent to own programs can help consumers save for a down payment. Anyone looking to enter real estate with a minimal down payment should consider it.

Want to discuss our Rent to Home Solution? Contact the JAAG Properties team today.

A Newcomer’s Guide to Buying Your First Home in Canada

Buying a home in today’s market is a challenge even for Canadians, so as a newcomer, you’re often at a disadvantage. Thankfully, we’ve compiled a handy guide to help you navigate the homebuying process!

What Newcomers Need to Know About Buying a Home in Canada

Eligibility Criteria

Both permanent and non-permanent residents may purchase a home in Canada, as long as non-permanent residents have a work permit.

You’ll need a Canadian bank account, and proof that you have enough money to make a down payment. You should also have a credit score of at least 680 to become a homeowner.

Mortgage-Related Terminology

Mortgage terminology varies around the world. That’s why it’s important that you understand Canada’s terms before you begin your homebuying search. Key terms to know include the following:

  • A mortgage is money you’ve borrowed to purchase your home. It covers the cost not covered by a down payment.
  • A down payment is a percentage of the purchase price that you pay in cash. For a home under $500,000, the minimum down payment is typically 5%, while more expensive homes require 10% if insured. Non-permanent residents usually put down larger down payments regardless of price.
  • Amortization is how long you’ll need to pay off your mortgage. The amortization is typically broken into smaller terms of 3-5 years, after which you’ll renew your mortgage with new terms.
  • The interest rate is the percentage you page to your lender in interest.

Types of Homes

The type of home you choose may influence its purchase price. The different types of homes for sale in Canada include:

  • Condominiums are part of a larger building or complex. Each unit is owned by an individual buyer, however the land is sits on is owned by the Condominium Company.
  • Single/Detached homes are houses intended for a single family located on its own property. The house doesn’t share walls with other houses.
  • Semi-detached homes are located on their own property, typically with their own yard and separate entrance, but they share a wall with another home.
  • Townhomes are attached to other homes on both sides. These can be freehold or condominiums. 
  • Duplex/Triplex properties are a single home divided into separate units.
  • Freehold properties where you as the owner own the land (typically single detached or semi-detached home but can also include townhouses)
  • Leasehold properties where you as the owner only own the unit and not the land (typically condominiums)

The importance of Location

Location is another factor that affects housing prices. Urban areas are typically more costly than rural locations, but are also more convenient, with easy access to amenities like grocery stores, schools, etc.

Larger cities have significantly higher housing prices than other, smaller cities, so you should adjust your budget accordingly.

Finding a Home in Canada

The path to homeownership in Canada can be difficult for newcomers, especially when you lack a Canadian credit history.

We know that buying a home is challenging, so we created our Rent-to-Own program. We work with you while you live in your home, save money and build good credit to buy it. At the end of your term, you’ll qualify for a mortgage so you can purchase your home from us!

Get Help Buying Your First Home from JAAG Properties

As a newcomer, you have additional barriers to buying a home in Canada, and we want to help. Apply online today to qualify for our Rent-to-Own program!

Tips for Finding Good Rent-to-Own Companies in Canada

Canadian rent-to-own options can be challenging, especially finding a company that offers flexible purchasing terms. Several companies offer programs facilitating the path to owning a home, providing alternatives to traditional purchasing methods. For prospective homeowners, finding a trustworthy partner in this journey is key.

The right company can offer a variety of properties, guidance, and transparent agreements that make the transition to homeownership smooth. This article will explore how to identify and secure quality Canadian rent-to-own homes, simplifying the process of finding your future home.

Understanding Rent-to-Own

Rent-to-own is an alternate path to homeownership for those whose income or credit prevents them from obtaining a regular mortgage. This route makes it easier to invest in a house, save for a down payment, and establish credit. A great starting step toward becoming a homeowner is rent-to-own, which blends renting and owning. You can rent a house and eventually buy it using this strategy.

How to Find a Rent-to-Own Company


Before considering rent-to-own, do your research so you can make a calculated homeownership decision. Start by looking for reputable rent-to-own companies in your area by reading online reviews and checking out company ratings. Reviews can provide insights into the company’s reputation, transparency, and customer satisfaction. It’s worth investigating the company’s history to see how long they’ve been in business and whether they are successful. You’ll want to choose a reputable company that provides clear terms, transparent communication, and a fair process for transitioning to ownership.

Look at Tenant Success Rates

While renting to own can be a successful path to homeownership, it is important to find out what percentage of tenants successfully transition from renting to owning through the company. A high success rate indicates that the company is effective in helping renters become homeowners, whereas a low success rate could suggest that the company is unreliable or not flexible.

Setting the Path to Homeownership

Choosing a trustworthy rent-to-own company takes time, research, and a clear grasp of your goals and personal circumstances. Recall that a rent-to-own contract is a commitment to your future rather than just a rental. With the appropriate strategy and direction from JAAG Properties, you may confidently proceed down this path and get one step closer to realizing your Canadian homeownership dream.


Start your journey toward owning a home with JAAG Properties. APPLY NOW

How Do Interest Rates Affect Monthly Mortgage Payments?

In a market that’s constantly evolving, you’ve probably heard plenty of recent discussion about interest rates and how they affect mortgage holders. If you’re confused by an overload of information, you aren’t the only one! We’ve cut through the financial jargon and translated how interest rates affect monthly mortgage payments into plain English that’s easy to understand.

How Are Mortgage Rates Set?

Your mortgage rate is determined by several factors, including your credit rating, the type of mortgage you apply for, the length of your mortgage term, and the overnight rate set by the Bank of Canada.

Variable mortgages, as the name suggests, have a variable interest rate, meaning that the amount of interest you pay on your mortgage changes depending on the market. Meanwhile, fixed mortgages have their rates locked in for the length of the term.

Your credit rating has a significant impact on the interest rate banks will offer you when you apply for a mortgage. If your rating is lower than 700, you may have difficulty getting approved. As a result, one of the best ways to score a lower interest rate on your mortgage is to improve your credit rating before applying.

What is the Impact of Interest Rates on Monthly Mortgage Payments?

The rate set by the Bank of Canada has the strongest influence on variable mortgage rates. When interest rates increase, so does the cost of a variable mortgage. In contrast, when they decrease, a variable mortgage becomes more affordable.

A fixed-rate mortgage typically has a higher interest rate at the outset, but the advantage is that you are immune to interest rate fluctuations for the duration of the mortgage term (5 years, 10 years, etc.). Your monthly payments remain predictable, making financial planning easier.

How Do Interest Rate Hikes Impact Your Monthly Mortgage Payments?

Interest rates affect you differently depending on whether you own your home yet. As a prospective homebuyer applying for a mortgage, higher interest rates will mean that you can’t afford as large a mortgage, because your monthly payments will be higher.

For current homeowners, those with variable mortgages will see that more of their mortgage payments go towards paying off interest rather than the principal loan. However, the actual payment remains the same. The disadvantage to a variable mortgage is that you’re somewhat at the mercy of the market, and if rates remain high, it will take you longer to pay off your mortgage.

Secure Your Dream Home with JAAG Properties

If you’ve struggled to qualify for a traditional mortgage in an ever-changing housing market, you aren’t alone. We help countless Canadians create a path to homeownership through our Rent to Home Solution, which allows you to live in your dream home while saving the funds to buy it. Apply online today or contact us to get started on your journey towards owning the home you’ve always wanted!

Ways to Improve Your Credit Score

People have credit issues for a variety of reasons. Divorce, job loss, and other financial hardships can wrack up debt quickly. Whatever your reason, it’s never too late to improve your credit score, and we’re sharing our top tips for bringing up those numbers, allowing you to qualify for mortgages, loans, credit cards, and more.

Understanding Your Credit Score

You can’t learn how to improve your credit score if you don’t know what the numbers mean! Familiarize yourself with credit score ratings, including what is considered low or high. In Canada, there are two credit bureaus that report your credit score: Equifax and TransUnion.

Credit Score Ratings

300 to 560: Poor
561 to 659: Fair
660 to 724: Good
725 to 759: Very Good
760 to 900: Excellent

It’s recommended you maintain a credit score of at least 660, since most lenders won’t approve you for credit cards, mortgages, or loans with a lower score. Of course, the higher your score, the better financial services you’ll have access to, including lower interest rates when you go to purchase a home.

How is Your Credit Score Calculated?

Put simply, your credit score is a measure of how you use credit. It’s calculated based on a variety of factors, including how much credit you have, how much debt you’re carrying, and your payment history.

Tips on How to Improve Your Credit Score

Pay Your Bills on Time

Your payment history is a major consideration for any lender. If you consistently make payments on time, especially if you often pay in full, it reflects well on your ability to manage your credit responsibly. If you’re forgetful, set up automatic payments to ensure that you still make payments on time.

Keep Your Credit Utilization Score Low

Maxing out your credit signals to lenders that you have difficulty managing your debt load and you may struggle to make payments on new loans. In general, you should try to keep your credit usage under 30% of your total limit.

Limit the Number of Credit Applications You Submit

When you apply for credit cards or loans, choose wisely. Each application results in a hard inquiry, which can lower your credit score. Limit how often you apply for new accounts and don’t send out more than one application at a time.

Review Your Credit Reports

Knowledge is power! Review your credit score regularly and check for evidence of identity theft or fraud. Any inconsistencies should be reported to your financial institution immediately.

You should also look for unpaid balances or accounts that have gone into collections. Clearing outstanding debt is one of the easiest ways to improve your credit score.

Beat Bad Credit & Rent to Own a Home with JAAG Properties

If you’re struggling with no credit or bad credit, you don’t have to abandon your dreams of homeownership. Our Rent to Home Solution is designed to help you build positive credit, increase your credit score, and own your home faster!

Contact us today to learn more about how we can guide you through the homebuying process.

What Options Are Available When You Can’t Qualify for a Mortgage?

In today’s increasingly tough real estate market, it’s no surprise that many Canadians and newcomers to Canada are struggling to qualify for a traditional mortgage from a bank. While this may be discouraging, the good news is that there are more options than ever for prospective homebuyers to own the home they’ve always wanted.

Reasons Why You May Be Denied a Mortgage from the Bank

Banks are risk-averse, and as a result, there are many reasons your mortgage application may be denied. Your credit rating is an important consideration for any bank, and if you have poor credit or no credit, that’s a top reason for denials.

Additionally, if you have insufficient assets or income to pass the mortgage stress test, or if you’re currently carrying too much debt, your application is unlikely to be successful with major banks.

Mortgage Alternatives in Canada

Thankfully, there is hope, even if you’ve already been denied. We’ve rounded up several alternatives you should consider in the event of a denial.

Private Lenders

Private lenders aren’t affiliated with banks and may be either private lending companies or individuals. Private lenders are more likely to consider higher-risk loans and may overlook poor credit or no credit. However, these loans usually come with a higher interest rate to compensate for the increased risk.

Credit Unions

Credit unions typically adhere to provincial regulations, not federal ones, so they aren’t bound by the national mortgage stress test. They have more flexibility, and they may be more likely to accommodate unique financial situations, such as freelance work.

Mortgage Brokers

Mortgage brokers are financial intermediaries, which means they have access to a wide range of lenders, including some that work exclusively with brokers. They may be able to help you track down a lender that’s more likely to approve your loan.

Rent to Own

Rent to Own agreements are not newer, innovative solution to housing affordability. In these arrangements, you agree to rent your prospective home from a seller for a preset term. During this term, you act as a tenant and save money for your down payment. At the end of the term, you purchase the home from the seller and become a homeowner.

Our Rent to Home Solution is unique because we guide you through every step of the homebuying process. We offer you access to real estate agents and financial planners if you don’t already have one to help you build positive credit, pay down debts, and plan for the future. After a typical term of three years, you’ll own your home! Our Rent to Home Solution allows you to live in your home today without waiting for a lender to approve your loan.

Get Approved for Your Dream Home Today with JAAG Properties

Don’t allow lenders to dictate your future! We can get you into your dream home sooner than you think. The JAAG Rent to Home Solution equips you with the necessary tools and guidance to accumulate savings for your down payment and guides your mortgage approval. Apply online today or contact us for more details!

The Benefits of Renting to Own in Canada

The housing market in Canada is presently characterized by peak house prices and higher interest rates. If you’re discouraged by the current real estate landscape as a newcomer, you aren’t alone, and new options for affordable housing are now available to you. Our Rent to Own program grants you all the benefits of homeownership at a price you can afford.

Why Newcomers Should Choose Rent to Own Solutions

Rent to Own solutions are gaining popularity for newcomers because they can help you fast-track your journey to homeownership in Canada by allowing for smaller down payments and more time to build your Canadian credit score. The best part? You can live in your dream home while saving to buy it!

Benefits of Renting to Own for Newcomers

Gives You Time to Improve Your Financial Situation

If you’re new to Canada, you may struggle to qualify for a mortgage due to a lack of credit history. With no credit score, few banks or lenders will consider your application, and those that do will often have predatory terms and sky-high interest rates.

With our Rent to Own solution, you have a set term (typically three years) to build and improve your credit score. Financial planners will help you with budgeting, accounting, and other financial matters so that when you finally apply for a mortgage on your home, you’re sure to be approved.

Requires a Smaller Down Payment

When applying for a mortgage, most lenders will require at least a 5% down payment (but some homes may require as much as 10%). As a newcomer to Canada, we understand how daunting those numbers can be!

Rent to Own programs allow you to put down a smaller down payment, giving you the freedom to move into your dream home sooner. At JAAG Properties, we only require a 3% down payment to qualify for our Rent to Own solution.

You Can Live in Your Home Before Purchasing It

Rent to Own solutions empower you to live in your home while you save to buy it. You no longer need to wait and potentially miss out on your dream property because of financial restrictions. You’re free to furnish, renovate, and redesign your new home to your heart’s content, so that when you do purchase it, it’s entirely your own.

Find Your New Home in Canada with JAAG Properties

If you’re new to Canada, or are planning a move in the near future, you can own your home sooner than you think! Forget overpriced, overcrowded rentals and put yourself directly on the path to homeownership with our innovative Rent to Own solution.

Apply online or contact us for more information on how you can start living in your dream home today!

Options for Getting into Homeownership with Bad Credit

Some might think that having bad credit means they can only rent and will never be a homeowner. No need to fret. There are solutions for getting into homeownership with bad credit. Read on to understand ways that homeownership is accessible despite financial challenges.

Partner Up for a Mortgage

This might be done with a partner or relative prepared to co-sign the loan agreement. By pooling your resources with another person who has strong credit, you can access a loan with better terms and interest rates, turning the challenge of bad credit into an achievable goal of homeownership.

Explore Private Lender Options

When it comes to giving money, private lenders are usually more open than banks. They may be willing to look past your credit score. Use caution and do your research since private loans may have greater costs and interest rates.

Boost Your Credit Score

One of the key actions that you can do to get a mortgage, is to raise your credit score. First, look over your credit report for mistakes. If you find any, fight them. Your score can slowly increase if you pay your bills on time and get rid of debts. Long-term benefits include better borrowing choices and cheaper interest rates, but this method takes time and discipline.

Increase Your Down Payment

Another option is to save up for a bigger down payment, so the loan amount goes down. In this case, loan terms might improve, like interest rates decreasing. A big down payment can also show lenders that you know how to handle money well, which could help if you have bad credit.

Consider Rent-to-Own Agreements

Rent-to-own agreements are an additional option for those with poor credit, to become homeowners. You agree to rent the residence for a certain period (usually for 3 years). When this period is completed, you purchase the home for the agreed upon amount. Often, a portion of your rent is used for a down payment or deposit. With a rent-to-own agreement, you can purchase a home, and raise your credit score simultaneously.

Stepping Stones to Homeownership

Each option needs careful thought and research. Exploring these options opens the door to potential homeownership, breaking down the barriers imposed by credit challenges. It’s about matching the right strategy to your financial situation and moving forward with informed decisions and steadfast determination. JAAG Properties can be a valuable resource in this journey.

Are you ready to turn your homeownership dream into reality with JAAG Properties? APPLY NOW