Remember George Bailey, the ill-fated protagonist of Frank Capra’s Christmas classic “It’s a Wonderful Life” (1946)? For those unfamiliar, it is essentially a tale of conflict and redemption centered on the Bailey Building and Loan Association, the only small-town institution with the strength to resist the pressures of powerful banking interests. Bailey (brilliantly played by Jimmy Stewart) has sacrificed his entire adult life to keep the company alive, because he believes in a vision of normal people escaping Depression-era slums to finance themselves and own their homes. , beyond the clutches of the ruthless banker Mr. Potter.
Can you see where we’re headed with this story?
“Hollywood” ending aside, “How Beautiful It Is to Live” has been called “the best financial services movie ever” for showing how people can overcome enormous obstacles if they are ready, willing and able to work thus. Don’t crawl into a bank or be held captive by a heartless landlord – get the home you deserve!
Now back to reality…
Basic concepts of lease with option to buy.
In response to the banks’ tight grip on the Canadian housing market, some people boldly proposed the concept of ‘Lease to Own’ home financing many years ago. Also known as ‘Rent to Own’, this alternative offers potential homeowners who are deemed too risky by traditional lenders (i.e. banks, credit unions, etc.) the opportunity to build equity in a short period of time. . Lease to Own allows people to immediately move into their own home, improve their credit rating, and demonstrate through reasonable monthly payments that they are responsible enough to handle a normal mortgage.
‘Lease-to-own’ can be viewed as short-term (ie 1-3 years) bridge financing that helps make you a better candidate for conventional loan options later. Some unique “lease to own” features include:
• Direct contact with the company/person who owns the home.
• Creative but realistic financial arrangements not offered by established banks or mortgage companies.
• You are the owner from the first day immediately after moving in; move in immediately and make improvements to your home without seeking outside permission (within the standard rules).
• Simultaneous credit repair and home equity enhancement during the term of your lease, to allow you to get your own financing as quickly as possible.
• Flexible options at the end of your initial lease, including the right to withdraw if life circumstances dictate another direction for you and your family.
Reasons to choose ‘Lease to Own’.
Tenants have so much to gain by entering into a ‘lease to own’ agreement, we could probably write a book on that topic alone! For now, we’ll limit ourselves to the best reasons to stop putting your hard-earned income back into the owner’s pockets:
1. Earn monthly credits.
Why use your monthly rent money to build your landlord’s estate when you can use it to build your own? By partnering with qualified lease-to-own or rent-to-own companies, you immediately start accumulating a down payment that will be used to eventually purchase your home.
2. Enjoy immediate appreciation of your home.
Any improvements you make to your home will increase its value above and beyond its final price. This increase in home value is yours because most lease-to-own agreements will lock in the price of your home from the start.
3.Move in immediately.
Why put your dreams of home ownership on hold because you didn’t qualify for a mortgage? With the right innovative lease-to-own program, you move into your home first, then deal with the bank.
4. Improve your credit rating.
Partnering with an established lease-to-own company today means working with real estate professionals to improve your credit score right away, so you can get conventional financing at the end of your lease.
Who can benefit from a lease with an option to buy?
• Workers on probationary period.
• Seasonal Workers.
• Recent immigrants to Canada.
• Anyone looking to buy a home but needs credit repair.
Bank hoarders are not fair to normal people. That’s why progressive home buying solutions like rent-to-own are gaining popularity across Canada. And while we may not be in Bedford Falls, nor living in the Depression, one can’t help but be inspired by George Bailey and his willingness to take on bankers and landlords on behalf of people seeking to own their homes. .
“…What did you say a minute ago? They had to wait and save their money before even thinking about a decent house.
Wait? Wait for what? Until their children grow up and leave them? Until they’re so old and rotten that… Do you know how long it takes a worker to save five thousand dollars? [in the Depression Era]?
Just remember this, Mr. Potter, that this rabble you’re talking about… they do most of the work, they pay, they live and they die in this community. Well, is it too much to make them work, pay, live and die in a decent couple of rooms and a bathroom?
– George Bailey (Jimmy Stewart) confronting Mr. Potter (Lionel Barrymore) at the Bailey Building and Loan, “It’s a Wonderful Life” (1946).
If you find yourself with the same spirit running through your body, along with the desire to own your own home, but under your circumstances, traditional lenders are not your best solution, you might consider contacting a lease-option company. to shop in your area to ask a few questions.
