Introducing the "Rent to Own" Home Ownership Program

Introducing the "Rent to Own" Home Ownership Program

Loans Canada’s new Rent-to-Own program is for those who are tired of paying rent and making their landlords rich. If you have a homeowner mindset and you are looking to build equity, use a smaller down payment, and build or even re-build your credit score then the Rent-to-Own program is what you are looking for. This program was created with the purpose of helping out those with poor credit to eventually become proud and established homeowners.

Here’s how the Rent-to-Own Program works:

  • The tenant/buyer puts a small down payment on the property which is used toward the purchase price of the property
  • The tenant/buyer makes monthly payments of which a portion goes toward the down payment
  • The tenant/buyer works to build, repair, or re-establish credit to build trust and become less of a risk in the eyes of mortgage lenders
  • At the end of the Rent-to-Own program, the tenant/buyer then applies for traditional financing through a mortgage lender
  • With a pre-approved mortgage and a cumulative down payment, the tenant/buyer can now purchase the home and become a homeowner

It is important to understand that the initial down payment made will later be used toward the buy-out price of the purchase. Also, as you continue to make your monthly payments a portion of each payment is directly added to your down payment. This monthly addition will steadily increase the value of your down payment, which ultimately goes toward the purchase price of the property. The accumulated down payment is a strong asset to have when it is finally time to apply for the mortgage that will give you ownership of the home. This step is the conclusion of the Rent-to-Own program and the goal to work towards as you go through the process.


Essentially, the Rent-to-Own program is renting with the end option to purchase the property. The tenant/buyer will have the option to purchase the property at a given price and within a given period of time. This program is only for those who are serious about owning a property and already have a homeowner mindset. The ideal client for the Rent-to-Own program is someone who:

  • Wants to work toward becoming a homeowner as soon as possible
  • Takes pride in ownership of the home
  • Understands that Real Estate is a great way to build wealth
  • Has had trouble receiving financing or has been declined by a mortgage lender before

The built-in benefits of the system are designed to increase to the tenant/buyer’s credit rating and the amount of their down payment. When mortgage lenders analyze applications for financing one of the largest determining factors is the size of the down payment. If the borrower is committed to a sizable down payment then it gives the lender an added layer of security. See, the lender wants to make sure that the loan will not default so the down payment must be at least 20% to have a good chance of approval.

The Rent-to-Own program revolves around slowly accumulating a percentage of the tenant/buyer’s monthly payment to build up the down payment. Also, as the monthly payments are made the tenant/buyer’s credit rating will continue to increase until it is time to buy the home. Combining a strong down payment, a recent history of paying debt, and a good credit rating your application for financing is sure to be accepted.

Loans Canada is proud to have this program in place to give those with poor credit a chance to be a homeowner. We are often able to get applications approved after the bank has already said no. This program gives our customers the ability to make payments that actually go toward the ownership of the property. Now, there are many benefits of the Rent-to-Own, here are just a few:

  • Repair, re-establish, or build your credit rating
  • Dodge the expensive closing costs on the property
  • Acquire equity in the property through building improvements
  • Use a smaller down payment

The Rent-to-Own program gives you the ability to begin investing in owning a home today and avoiding the cash pit of rent. This program will help you to be more financially responsible, stay on track and go through the necessary steps to build the equity and credit rating required to qualify for a mortgage. The Rent-to-Own program will put you well on your way to becoming a homeowner in no time, and you also receive the added benefits of a stronger credit rating and real equity in your property.

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Posted by in Mortgage
Caitlin graduated from Dawson College in 2009 and completed her Art History degree from Concordia University in 2013. She started working as a freelance writer for Loans Canada right after University, eventually working her way up to Chief Content Editor. Her work has led to a large expansion of the company’s content department and she manages a staff of talented writers who are passionate about educating Canadian consumers about credit, debt, and all things personal finance. With over five ...


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