Leaseback Options & Home Equity Release
We know that life can get in the way, and we are here to help you. If you own your home and are looking to pay off debt, our Leaseback Options could be the solution to access your home’s equity and manage debt efficiently. However unique your situation is, JAAG’s Rent to Home Services provides flexible home equity release and a path to potentially repurchasing your home.
Start the lease back option process today!What is a Leaseback Option?
JAAG’s Leaseback Option allows you to receive a payout with your home through a sale-leaseback arrangement, often called an equity release program. The amount you qualify for in a leaseback option generally depends on the appraised fair market value of your home and total debt.
This option is ideal for homeowners looking for a flexible way to access their home equity while staying in their property and managing financial obligations.
Leaseback vs Reverse Mortgage
Many homeowners confuse leaseback options with reverse mortgages, but they are different financial solutions.
- Leaseback / Sale-Leaseback: You sell your home, access your home equity, and continue living there as a tenant, with the potential to repurchase later.
- Reverse Mortgage: You take a loan against your home’s equity without selling, repaying the loan only when you move, sell, or pass away.
Understanding the difference helps you choose the best equity release strategy for your needs.
How a Leaseback Option Works
Our Leaseback Option will enable you to stay in your home while entering a Rent to Home Solution, giving you the time and flexibility to build back your equity and potentially repurchase your home when you’re ready.
Who is Eligible for a Leaseback Option?
A leaseback option is generally an option for people who have equity, want to access cash, and are looking for debt relief or financial flexibility.
Ideal candidates include:
- Homeowners with significant equity
- Those who want to stay in their home while unlocking funds
- People considering alternative equity release options like a sale-leaseback
Frequently Asked Questions (FAQs) About Leaseback Options
A home leaseback is when you sell your house to an investor or Rent to Own provider like JAAG Properties, but you get to keep living in it.
You get a big chunk of cash right away from the sale but get to stay in your house. Then, you sign an agreement to rent the house back from the investor while also having the option (a chance) to buy it back later.
The Honest Truth
This is a permanent sale. It’s not just a temporary fix.
- You are NO longer the owner. You are now the tenant (the renter).
- If you can’t pay the rent or can’t buy the house back on time, you could lose the house, and you won’t have any money (equity) left in it.
| Item | Your Status Now | After Leaseback |
|---|---|---|
| Official Owner | You | The JAAG Properties Investor |
| Your Status | Homeowner | Tenant (A Renter) |
| Your Money | Stuck in the house | Big cash payment to you |
Who This Is For
People who have a lot of money (equity) trapped in their home, need cash right away, and are sure they can afford the rent and buy it back later.
During your lease, you are protected as a tenant under the Residential Tenancies Act. You have rights, including the ability to challenge unfair rent increases (which are limited by Bill 163 for 2025).
Who This Is NOT For
People who are about to lose their house, people who have shaky jobs, or people who just hope things will work out later.
⚠️ Reality Check: Once you sell your home, you cannot get it back if you miss rent payments. The Consumer Protection Act, 2023 requires that all terms be clearly disclosed before you sign. Make sure you understand everything before you agree.
These two options are ways to get money from your house, but they work very differently.
| How it Works | Leaseback (JAAG Properties) | Reverse Mortgage |
|---|---|---|
| Do you sell the house? | YES (You sell it permanently). | NO (You stay the owner). |
| Upfront Money | One big cash payment. | Money paid to you monthly or in small amounts. |
| Who Owns the House? | An investor owns it. | You still own it. |
| Are you a Renter? | YES (The law protects you as a tenant under the Residential Tenancies Act). | NO (You are the owner). |
| Monthly Payment | You pay fixed leaseback rent (protected by Bill 163 rent limits for 2025). | You pay nothing; the loan just gets bigger. |
| Buying it Back? | Optional (You must qualify to buy it back). | Not applicable. |
| Worst-Case Ending | Risk of eviction (losing the house completely). | The house is sold after you pass away to pay the loan. |
The Main Idea
Leaseback gives you cash now but makes you a renter with a promise to buy back later. Reverse Mortgage lets you keep owning the house but gives you the cash slowly.
Why Your Realtor Matters
With a leaseback, you become a tenant. That means your rent payments are protected by the same rules that stop landlords from raising rent too much.
Your realtor must know these rules. If they don’t understand the Residential Tenancies Act and how tenant protection laws work, they could miss important details that protect you.
📋 Key Difference: In a leaseback, you lose ownership forever (unless you buy it back). In a reverse mortgage, you stay the owner—your family inherits the house, but the loan gets paid off first when you pass away.
You have to meet ALL of these rules to qualify for a leaseback through JAAG Properties.
| Rule | What it Means | Why it Matters |
|---|---|---|
| House Money (Equity) | You must have at least 25% of the house’s value already paid off. | The investor needs to make sure they are safe and have enough room to make money. |
| Income Check | You must have a steady job and earn enough to pay the rent. | The rent payments can be high, and you must prove you can keep paying them. |
| House Type | It must be a regular home (not a business building). | This is what the investors are allowed to buy. |
| Time Owned | You must have owned the house for at least 1 year or more. | This avoids complicated papers and loans. |
| Credit Score | Not important (the money in your home is what matters). | This deal looks at your equity, not your past debt. |
| Buying Plan | You must have a real plan to buy the house back later. | They won’t accept people who are just guessing they will buy it back. |
❌ You Are NOT Allowed If:
- The bank is already trying to take your house (foreclosure).
- Your job is not steady, or you can’t prove how much you earn.
- You don’t understand that you are permanently selling your home.
💡 Important: Unlike a traditional mortgage, a leaseback does NOT require a good credit score. However, you must prove you have stable income to pay rent, as you are now a tenant under the Residential Tenancies Act. Any missed rent payments can lead to eviction through the Landlord and Tenant Board.
Next Step
A realtor from JAAG Properties can do a fast check to see how much money you have in your house. There is no cost, and no obligation to move forward.
Yes, if you meet the rules. No, if you don’t.
Leaseback is the RIGHT Choice If:
- You have a lot of equity in your home (25%+ equity) and need cash for an emergency or a business idea or to pay off debt.
- You are sure you can pay the rent and buy the home back in the next 3 to 5 years.
- You understand that you are permanently selling the house right now.
Leaseback is the WRONG Choice If:
- You have an unstable job or are about to lose your house.
- You think this is a way to keep your home without having to pay bills (you have to pay rent!).
- You don’t have a real plan to buy the house back later (you will lose the home for good).
⚠️ Reality Check: You are selling your house, and the investor owns it. You only get to stay if you:
- Pay the rent on time — If you don’t, you can be kicked out through the Landlord and Tenant Board.
- Buy the home back before the deadline — If you miss it, you lose all your money and the house.
If you are not sure about these things, the leaseback option is not for you. This is a permanent sale. Talk to a lawyer or financial advisor before you sign anything. Your rights are protected under the Residential Tenancies Act while you are renting, but only if you stay on time with payments and understand the buyback deadline.
Here is what happens and what rules apply at each step in a leaseback agreement.
| Rulebook | What Happens in the Leaseback | Your Right as the Tenant |
|---|---|---|
| RTA (Renting Law) | The investor is your landlord, and you are a protected renter. | You can argue if the rent goes up too much, ask for repairs, and file a complaint with the Landlord and Tenant Board. |
| Bill 163 (Rent Freeze) | Your rent cannot go up at all during the year 2025. | Your rent price is locked (which helps you). |
| Consumer Protection | The agreement must be clear about all costs and options. | You have the right to look closely at the papers and have time to think about it. |
| Taxes | The sale might make you owe the government tax on the money you made. | You must talk to an accountant to find out if you owe tax. |
Money Example (This is Not Your Real Price, Just an Example)
- House Value: $400,000
- Money You Own (Equity): $200,000
- Investor’s Cut: $100,000
- Your Payout (Cash You Get): $100,000 (minus fees)
Rent Example (Also Just an Example)
- Normal Rent in Your Area: $2,500/month
- Your Leaseback Rent (Lower Price): $1,500/month
- In 2025: The rent cannot increase at all (thanks to Bill 163)!
- After 2025: The rent can only go up a little bit each year, based on the Ontario rule.
📌 Key Point: Your leaseback rent is usually much lower than market rent. This gives you breathing room to save money and plan for your buyback. However, you must pay it on time, every month, or you risk eviction.
Benefit in more ways than one with JAAG Rent to Home Program
We’ve helped hundreds of homeowners across Canada access their home equity through our Leaseback Options and Rent to Home Solution. Whether you’re exploring a Leaseback vs Reverse Mortgage or looking for a flexible Sale-Leaseback plan, we’re here to support your financial goals.
Start the leaseback option process today and unlock your home’s equity while staying in the home you love. Contact JAAG Properties to learn more and get started.
Start the leaseback option process today!