Category: Rent to Home

Thinking about a rent to own home but not sure how it all works? You’re not alone! A lot of people have questions about the process, from how payments work to what it takes to eventually own the home. Rent to own can be a great option for those who aren’t quite ready for a traditional mortgage but still want to work toward home ownership. In this blog, we’ll break down some of the most commonly asked questions about our Rent To Own Program, so you can decide if it’s the right fit for you.

Rent to Own Program Qualification Questions:

Do I Qualify for JAAG’s Rent to Own Program?

At JAAG Properties, we understand that not everyone fits the traditional home buyer mold, but we believe everyone deserves the chance to own a home. If you have a stable job, a 3% deposit, and need assistance overcoming the hurdles of purchasing a home, you may qualify for our Rent to Own Program.

Do I Qualify for Rent to Own If I Have a Past Bankruptcy?

Yes. We have a full credit team that will work with you throughout the Rent to Own Program to increase your credit score to the level the banks and lenders require. We have set up our credit team in order to work with the people that are currently in bankruptcy or consumer proposal or have gone through this in the past. Our credit team will perform a credit analysis, which will outline what needs to be done and the actions you can take throughout the program to achieve success. If you are willing to work with our credit team to improve your credit profile, your credit score today will not be a deciding factor for our approval.

Do I Qualify If I Am Self Employed or Own My Own Business?

The answer is yes. We work with several individuals that are small business owners or self-employed and help them claim their hard-earned income properly so that they can qualify for their own mortgage.

What are Some Reasons I Might Be Declined for the Rent to Own Program?

There are two main criteria that we look at for approval in JAAG’s Rent to Own Program, deposit and income. If you have 3% of the purchase price saved and stable income, you will be approved for JAAG’s Rent to Own Program. You need to ensure that you’re able to make the payments towards ownership of your home as well as your current expenses. If you are willing to do that, then you are able to qualify.

Rent to Own Process Questions:

Who Chooses the Home in a Rent to Own Agreement?

You get to choose your own home, the area, and amenities that you want to be close to. Our Rent to Own Program is set up the same way as if you were going through the home buying process yourself. JAAG Properties does not inventory any homes that you have to pick from. We are approving you for a purchase price. Then you will work with a realtor to find the home that best fits your criteria. Once you select the home, we start the offer process, complete a home inspection with you and buy the home. The only difference is we are on title. Once the Rent to Own Program is successful, the title goes in your name, and you are officially a homeowner.

What are Some Reasons a Property Might Not Be Eligible for the Rent to Own Program?

There are only a few reasons JAAG Properties might not approve the specific home. These include:

• The property is too rural, and a higher deposit is required
• The property is in a state of disrepair and needs too much work
• Your income level does not support the purchase price of the home

Is a Home Inspection Required for Rent to Own?

Yes. We require a home inspection on all the properties that we purchase. You are responsible for the payment of the home inspection and that’s usually between $400 – $500 and done by a professional home inspector. The goal of this inspection is to ensure the home is in good condition and free of any hidden problems in all major areas, like roof, electrical, plumbing, heating, and cooling.

How Much of a Deposit is Required to Rent to Own?

The minimum deposit to qualify for the program is 3% of the approved purchase price. For example, if the approved purchase price is $500,000, the minimum deposit that you’ll need to qualify for the Rent to Own Program is $15,000.

How is the Future Purchase Price of a Rent to Own Home Determined?

A few factors come into play when determining the future purchase price:

• Today’s Fair Market Value of the Property. When a client identifies a desirable property, JAAG Properties will purchase the property based on today’s market value or a price the seller is willing to accept.
• Length of the Rent to Own Term. Based on the area of the province and property type, a conservative annual appreciation rate is determined based on historical market data. For instance, if the market suggested an annualized appreciation rate of 7% – 10%, we will use 4% – 5%.
• Approved Mortgage Amount. The approved mortgage amount from our credit team verification that at the end purchase price will be within the expected mortgage budget provided by the mortgage expert.

What are the Benefits of a Pre-Determined Future Purchase Price?

Some benefits of a pre-determined future purchase price, with a fixed future purchase price, the problem of market volatility is removed, and so is the uncertainty on affordability in the future. A fixed purchase price means a fixed down payment amount, eliminating the problem of trying to catch up with rising home prices. As the market appreciates above and beyond predetermined purchase price, our clients will be building equity throughout the Rent to Own Program.

Am I Allowed to Renovate the House?

Yes. You can update and renovate the home as you see fit during the program. We want you to make that house your home, because it will be at the end of the Rent to Own Program.

Who is Responsible Maintenance Payments During the Rent to Own Term?

You will be responsible for all the upkeep, maintenance, and ongoing issues of the property. Our program is not just renting to own, but instead a home ownership and training program. You will directly benefit from any improvements that you make from the home, such as renovations as it will increase the value of your home. And, of course, all homes need regular maintenance and ongoing issues happen. It’s important to budget accordingly and keep this in mind throughout the program. When you choose your home, it will be inspected by a certified home inspector, and you will know exactly what is required for that specific home and decide if you’d like to proceed.

Are the Property Taxes and Insurance Included in My Monthly Payments?

Yes. The monthly payments you make to JAAG Properties will go towards the mortgage, property tax, and insurance, as well as the monthly credit you will require for your full down payment. Throughout the entire Rent to Own Program, the monthly payment is automatically set up for the first of each month.

What Happens If I Don’t Qualify for a Mortgage at the End of My Rent to Own Term?

If you are unable to qualify at the end of the Rent to Own Program and have made all monthly payments on time, we will extend the rent to own term until you can qualify. We set up all of our rent to own programs to work with individuals and families to own their home.

Start Renting to Own with JAAG Properties

Choosing a rent to own home is a big decision, and it’s natural to have questions along the way. At JAAG Properties, we’re committed to making home ownership more accessible by providing clear guidance and support throughout the process. Whether you want to understand the financial details, eligibility requirements, or how the transition to ownership works, our team is here to help. No question is too big or small—we want you to feel confident in your decision. Get in touch with us today to learn more!

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A credit score is a three-digit number that represents your creditworthiness and impacts your ability to secure loans, mortgages, and credit cards. Many Canadians worry about factors that don’t actually affect their score. Knowing what does and doesn’t impact your credit is essential, especially if you’re planning to buy a home.

Why Credit Scores Matter

Your credit score determines loan eligibility, interest rates, and financial opportunities. Lenders use it to assess your reliability as a borrower. A higher score often means better borrowing options, while a lower score can lead to higher interest rates or loan denials. However, some commonly misunderstood factors have no effect at all.

Common Things That Won’t Hurt Your Credit Score

Checking Your Own Credit Report

Reviewing your credit report is a “soft inquiry” and does not lower your score. In fact, checking it regularly helps identify errors or potential fraud.

Using a Debit Card

Debit card transactions are not reported to credit bureaus because they do not involve borrowing money. Whether you use your debit card frequently or rarely, it won’t impact your credit score.

Income Changes

Your salary, job status, or career shifts do not directly affect your credit score. While income influences your ability to pay bills, your score is based on how you manage credit, not how much you earn.

Marital Status

Getting married or divorced does not impact your credit score. Even if you share financial accounts, your credit report remains separate. However, joint accounts and co-signed loans can influence both partners’ credit history.

Denied Credit Applications

While being denied credit can be discouraging, it does not hurt your credit score. However, the hard inquiry from applying for credit can have a minor temporary impact. To minimize unnecessary hard inquiries, avoid applying for multiple credit accounts in a short period.

How to Protect Your Credit Score

Although the factors mentioned above don’t affect your credit score, there are steps you should take to maintain and improve your rating:

Pay Bills on Time

Your payment history is one of the most significant factors in determining your credit score. Late payments can lower your score, so always aim to pay bills on time.

Keep Credit Utilization Low

Credit utilization refers to the percentage of your available credit that you use. Keeping this ratio low—ideally below 30%—shows lenders that you manage credit responsibly.

Review Your Credit Report Regularly

Checking your credit report for inaccuracies or fraudulent activity helps you maintain an accurate and strong credit history. If you spot errors, report them immediately to the credit bureau.

Contact JAAG Properties to Start Your Home Buying Journey

A strong credit score can make homeownership more accessible, but you don’t have to navigate the process alone. JAAG Properties offers Rent to Home Solutions that can help you achieve your dream of owning a home in Canada. Contact us today to learn how we can support your journey to homeownership.

Managing debt can be overwhelming, especially when multiple loans and high-interest rates block the path to homeownership. Debt consolidation is often suggested as a solution, but misconceptions exist—some see it as a quick fix, while others fear it could harm credit. In reality, it can simplify your finances and bring you closer to owning a home if done right.

What is Debt Consolidation?

Debt consolidation combines multiple debts into a single loan or payment. Instead of juggling credit cards or personal loans with varying rates, you’ll have one monthly payment. This can reduce stress and may lower your overall interest rate, depending on the method you choose.

How Does Debt Consolidation Work?

To consolidate debt, you take out a new loan to pay off existing debts. This can be done through a bank, a balance transfer to a low-interest credit card, or by using home equity if you’re a homeowner. After consolidating, you’ll make one monthly payment, ideally with a lower interest rate.

Types of Debt Consolidation

1. Debt Consolidation Loans: Combine debts into one loan through banks or online lenders. Pros: Simplified payments, potential lower rates. Cons: May need good credit, possible fees.
2. Balance Transfer Credit Cards: Move debt to low or 0% interest cards. Pros: Low/no interest during promo. Cons: High rates after, possible fees.
3. Home Equity Loans/HELOCs: Use your home’s equity to pay off debt. Pros: Lower rates. Cons: Risk of losing your home if you default.
4. Debt Management Plans (DMPs): Credit counselling arranges lower rates and structured plans. Pros: Professional support, reduced rates. Cons: May impact credit score, possible fees.
5. Consumer Proposals: Insolvency Trustee negotiates reduced payments. Pros: Avoids bankruptcy, legally binding. Cons: Affects credit score.
6. Refinancing Your Mortgage: Increase mortgage to consolidate debt. Pros: Lower rates, simpler payments. Cons: Extends mortgage term, potential penalties.
7. Line of Credit (LOC): Use secured/unsecured credit lines to consolidate. Pros: Lower rates than credit cards, flexible payments. Cons: Requires discipline to avoid new debt.
8. Student Loan Consolidation: Combine federal student loans. Pros: Simplified payments, fixed rates. Cons: May lose certain benefits.
9. Debt Settlement Programs: Companies negotiate to reduce total debt. Pros: Potential debt reduction. Cons: Affects credit score, less regulated in Canada.
10. RRSP Withdrawals: Use retirement savings to pay off debt. Pros: Immediate funds. Cons: Tax penalties, impacts retirement savings.

Benefits of Debt Consolidation

• Lower Interest Rates: Consolidation may qualify you for a lower rate, reducing the total amount owed.
• Simplified Payments: A single monthly payment reduces stress and helps you stay on top of finances.
• Potential Credit Score Improvement: On-time payments on your consolidated loan can improve your credit score.

Take the Next Step Toward Homeownership with JAAG Properties

Debt consolidation can simplify your finances and position you for success. If owning a home feels out of reach due to debt, JAAG Properties can help. Our Rent to Home Solutions help you work toward homeownership while managing your financial health. Contact us today to learn how we can help you achieve your dream of owning a home.

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

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.