Rent to Own and Homeownership Terms Defined
Buying a home can feel confusing with all the financial and legal terms involved. At JAAG Properties, we want to make the process easier. That’s why we’ve created this simple guide to explain common words you may hear when looking into homeownership or our Rent to Home Solution.
Rent to Own and Homeownership Definitions
An appraisal is a professional estimate of a home’s value. Lenders and buyers use it to make sure the price is fair.
A credit score is a number that shows how reliable you are at paying back money. Higher scores make it easier to get approved for loans and mortgages.
A down payment is the money you pay upfront when buying a home. It is usually a percentage of the purchase price.
Escrow is when money or property is held by a third party until all conditions of a deal are met. It helps protect both the buyer and seller.
This is a rent-to-own agreement that gives you the choice, but not the obligation, to buy the home at the end of the lease. This agreement sets the price you’ll pay for the home when you’re ready to buy, even if the market changes.
A rent credit is when part of your monthly rent is set aside to go toward your future down payment or purchase price.
Rent to own is a program that lets you rent a home now and buy it later. It gives you time to build savings and improve your credit before getting a mortgage.
Take the Next Step with JAAG Properties
At JAAG Properties, we’ve helped many people and families across Ontario achieve homeownership through our Rent to Home Solution. Whether you’re self-employed, new to Canada, or rebuilding your credit, our program can give you the time and support you need.
Contact JAAG Properties today to learn more about how rent-to-own can work for you.
