FREQUENTLY ASKED QUESTIONS

• Our Rent-to-Own-Program allows you to rent the home with the “Option to Purchase” it in the future.
• The process can take 2-3 years depending on your individual financial circumstances.
• Our credit team develops an ACTION PLAN with you – clearly outlining what you need to do for the bank to say YES to your future mortgage qualification.
• You are now “renting to own” the home with an option to purchase the property in the future.
• During that time, two things are normally happening – you  are saving your down payment and working on improving credit.
• Two contracts are involved:
  • A standard Rental Lease contract
  • An Option to Purchase contract
• We agree to the monthly rent, term, initial down payment and additional monies paid monthly called “Monthly Option Credits.”
• An “Initial Deposit” is required before you move into the home.  100% of these funds will be applied towards the purchase price of your home.
• Every month in addition to your rent, you pay an amount called a “Monthly Option Credit” This amount is added to your initial down payment, and 100% of these payments accumulate towards your future bank down payment.
• You can quickly accumulate a significant portion of your future down payment.
• Make consistent and timely payments to exercise your “Option to Purchase”.
• Our expert credit specialists will review your progress towards mortgage qualification to ensure that you remain on track.
• Learn more about how the Rent-Own-Program works.

Our Rent-to-Own program is all about helping someone who not only has bruised their credit but, more importantly, is taking or is willing to take the steps required to improve it. As long as we can see that your credit is repairable, you are a candidate for our Rent-to-Own program.

Yes.  It has been our experience that Rent-to-Own clients who have “skin in the game” have a higher probability of qualifying/success, to the point where we rarely offer zero-down deals.  From the beginning, you are invested and financially committed to this deal, as are we. The bank will require money down once you have qualified for your mortgage, and the deposit serves to start you down the road to fulfilling the down payment.  If you do not have an up front deposit, don’t count yourself out yet! This is where we stand apart from our competitors – offering creative and flexible deals designed uniquely for your financial situation.  Yes we have done deals with clients who only had a security deposit, BUT were able to make a very strong Monthly Option Payment on top of their rent – allowing them to accumulate money quickly towards their future down payment.  We highly recommend you call us and we can do a quick review over the phone to determine if you fit this scenario.

We ask: “What is the most that can you afford to put towards the down payment on your new home?”   The more that you put down before you move in equates to a reduced monthly Option Payment.  Depending on your situation, the bank will be looking for between five and twenty percent down at time of purchase.  You are going to be paying towards that down payment in two ways – with the up-front Option Deposit and with the monthly Option Payment.  We have flexible terms suited to each client’s financial needs.  Some clients can pay more up front while others pay more monthly.

Some people do not have any money to put down initially.  We congratulate you for reaching out and investigating home ownership.  We do encourage you to call our office for more details. If you can make a strong Monthly Option Credit payment on top of your rent payment – we have made exceptions.  Contact us to investigate your options!  This is what we call our flexible creative terms.

This is a pre-determined amount of money that each month you will pay in addition to your rent.  It is added to your up-front deposit and will accumulate together as your eventual bank down payment.

As of January 2020, we are proud to count thirty-two families that have qualified to become home-owners via our Rent-to-Own program.  We currently count eighteen properties with folks like you that are working towards mortgage qualification.

Nobody will work harder than we will to help you achieve your goal of home ownership.  Our unique process has been developed and honed for over a decade, and our results are proof of the pudding.  Ask us for our references!

Yes!  We have helped more than a handful of entrepreneurs like you qualify for home ownership.  A discussion with our team will create a custom roadmap for you to put in place the steps required for you to achieve success.  You can live in the house and have that security while our team guides you on how to make your income reflect the ability to obtain a mortgage

That depends on each person’s individual situation.  Our professional team will determine upfront how long that it will take for you to qualify, and tailor a road-map for success that is unique to you.

We don’t ever like to say a definite no until we have had a chance to look closely at the deal.  It depends on a variety of factors including if it is still on your bureau.  That could make things more difficult for sure.   Anything involving property – must fall off your credit bureau – which takes roughly 7 years.  You can re-establish with a bankruptcy – but if a property is on the bankruptcy, it complicates qualifying.  Sometimes if you have a significant amount of money down, a private lender can be used. Rules are much different in this situation when compared to a conventional bank.  We encourage you to call us or complete our online form and we can get back to you with more details.

Yes, eventually.  It just takes time.  It may take a couple of years to complete your payment schedule.  Once that is complete and you have re-established clean credit then a bank would consider you.  Call us and we can look at your situation to determine your timeline.

Yes, we have worked with several folks who were in “discharge” from bankruptcy or in the process of being “discharged” from bankruptcy.  Time is what is required.  After “discharge”, two years of clean, re-established credit is required on your credit bureau.  Our team will offer an action plan on re-establishment.  It’s up to you to do the work required to keep all your payments current.

That depends – if you are eligible for the First Time Home Buyers Program through your RRSP, then yes it does help you.   You can use your RRSP towards your down payment without having to pay the tax upfront today.  You have a certain number of years to pay it back.  Call us for more information.

Yes.  You are a tenant with an Option to Purchase the property.  You pay market rent monthly, but are now a Tenant Buyer with a firm action plan in hand, working towards mortgage qualification.

Your rent payment pays for your rent. You will make an additional payment on top of your monthly rent payment– that is the Monthly Option Credit or Payment. This money is accumulated with your up-front Option Deposit for your future bank down payment. You are a Tenant Buyer with a firm action plan working towards mortgage qualification.

100% of your initial deposit and monthly option payment is accumulated by us and is credited towards the purchase price of the home.  This is your money and your future down payment for the bank.

Great question – You will find other individuals and/or companies offering programs who require no down payment and take very little option credit monthly.   We too see these offers, and ask ourselves – how are they building success for you?  What education and mentorship are they offering that will help you qualify for a mortgage?  If we see someone advertising a very low or no down payment and very small monthly Option Credits, we get very suspicious.  If you are only paying:
$    200/month Option Credit payment
x      12 months
=$2,400 after one year and need $17,500 for a down payment (based on 5% of $350,000), it will take a very long time to build up that down payment.  A lot can happen in those 6 – 8 years that you are accumulating that down payment – and some of these plans do not have any written guarantee to extend the Option to Purchase.

Our Rent-to-Own Program has a proven track record for creating a win for you by structuring a realistic action plan for down payment and credit building.  We call these low down/low-monthly payment versions the “never-never” or Rent-to-Fail plan.

Yes, in many cases we can.  We have worked with folks that are self-employed, divorced, new to the country/province/job, already owned existing property, and watched them become qualified.  The major exception that can exist is if your income does not allow you to meet the ratios of debt to income required by the banks, and you do not have a co-signor – in this case, a significant down-payment will be required, combined with private financing at time of qualification.

Yes, once you start the application process with our credit specialist, they will pull your credit to assess if credit building is required, and how long that it will take.  This is a factor that helps us to determine the length of time required for mortgage qualification.

Occasional inquiries are considered to be normal by the credit bureau, and the impact to your credit score is both minimal and short term.  What you want to avoid (a practice that we will never do) is multiple “shotgun” inquiries in a short space of time.  We have seen this happen when folks go shopping for a car and every car dealership pulls credit – this unfortunately has a very negative impact on your bureau.  If and when you are in our program, do not let anyone pull your credit without talking to us first.

Contact us for a free, no-obligation review to see if you qualify for our Rent-to-Own Program.  Or complete the online form and we will contact you. We can usually do a quick assessment over the phone.

We strive to find homes that have a wide appeal for people.  As a local family owned business, we focus mainly on Airdrie based single family homes, town home or duplexes.  We will work with you to find a home that not only fills your needs but your budget as well.

This is what we proudly call Peak Housing Solution’s Rent to Own Program!  We are experienced in creating deals that foster success.  We strive to educate you on what needs to be done on your part to achieve mortgage qualification and set a firm action plan in place.  We are with you every step of the way.  We have had client’s share their negative experiences with other companies and we call those other companies “Rent to Fail” programs.  We want you to become a homeowner and buy the home from us!  So we work hard to ensure that happens.  We want you to tell your friends and we want your testimonial on our website!

1. Lack of an upfront action plan that clearly outlines the steps required to qualify,
   A roadmap is a great tool to help you get to your destination. Our credit experts will assess and tailor the steps required for us to help you create success and achieve your goal of becoming a home owner.  This planning is done at no charge to you.While it seems that everyone these days has a friend/relative/referral to a mortgage broker, our experience has shown that working with a professional experienced in Rent-to-Own qualification leads to an increased success rate, and as a result it is mandatory to work with the expert of our choice.  We do not get any compensation from them – creation of the win-win between us and you is more than enough reward for us.
2. Lack of regular follow up/review to ensure that you are on track. We have regular check-ins with both us and our mortgage broker – your success is our success
3. No clear plan to ensure that the required down payment is accumulated over time.  The No/Low down payment low monthly payment method truly represents an example of this pitfall.  This is clearly in our minds “Rent to Fail.”  Our created-in-advance plan details how the down-payment is to be accumulated from day one – no surprises!
4. No guaranteed option to extend the Option to Purchase.  Life happens.  If the original term is set to expire, and your situation changes (or you have completed every step required, and the bank/government changes the qualifying rules), each and every one of our Option to Purchase contracts has a written guaranteed renewal clause.
5. Life Happens  Unexpected changes:  relocation, job loss, separation.  In the most recent economic downturn, we worked with multiple families through job loss situations to revise agreements and create new terms that worked for both parties.  This flexibility represents one of our biggest strengths.  We also offer a trade up/down program, which can also help out.  Unfortunately, not every situation can be addressed, but know that we will make every effort to look at your situation and accommodate unforeseen circumstances.
6. Lack of credit discipline: taking on new loans, continued late/missed payments, collections.  Qualifying for a mortgage carries many similarities to hiring a personal trainer to help improve one’s physical fitness.  They will create the plan; the only person that can do your sit-ups for you is YOU.  We advise everyone to not take on any additional debt without speaking to us first.  While that shiny new car may be tempting or taking that hot vacation, the last thing that either you or us want is for it to prevent you from qualifying to buy your home.

To clarify – you do not have a mortgage yet..  You have a rental lease with an option to purchase. You will eventually have your own mortgage with the bank.   But right now, we own the house and you have the “option to purchase” at the end of the term when the down payment is accumulated, and your credit is in place.  When you do qualify with the bank, the mortgage payment will be based on how much money you have to borrow from the bank.

Until such time as you are ready to qualify for your own mortgage, we do! Once you are in your home, our team will do regular reviews with you to update the status of your qualification.

It is your future down payment for the bank and is paid in addition to your rent.  This is your money and will eventually be used as your down payment.  We accumulate that payment for you and it is taken in two parts – as an Initial Deposit (when you  move in) and as Monthly Option payments.

There are two contracts.  As a tenant you will have a signed Rental Lease agreement for the property.  You will also have an Option to Purchase contract which lays out the term, price and payments towards your new home.  This is your guaranteed option to purchase the home.

The two terms mean the same and are interchangeable.  That said, as independent businesses, every company offering Rent-to-Own sets their own deal parameters, which can mean the difference between a Rent-to-Own and a Rent-to-Fail deal.

As a family-owned, Airdrie-based small business, we do not have hard, fast rules like the bank.  We structure each deal to create a win-win for all parties.  You do not require good credit or full down payment today in order to deal with us.  We recognize that qualification will take time.

No.  Because you are a tenant in the Rent to Own phase, you are responsible to pay for only your rent, Monthly Option Credit, and utilities.  We cover the property tax, the existing mortgage payment, the condo fees (if any) and the insurance on the home.  Once you have qualified with the bank and become a homeowner, you will then become responsible to pay these expenses.

We are very committed to ensuring your success when it comes time to qualify for the mortgage.  Our company policy is to accumulate those payments for you.  Part of that success is making sure that all the down payment is in place once you have completed qualifying.  It will all be your down payment and money will be passed on to the lawyers at time of closing.

We would re-evaluate if the situation arises.  Keep in mind banks will often offer better programs and interest rates when you have more money for the down payment.  You will also pay less of a CMHC fee (Canada Mortgage and Housing Corp.)  There will also be legal closing cost fees that will have to be accounted for.

During that time, you are welcome to make minor renovations to the home (paint, landscaping etc).   Major renovations will absolutely be considered by us if your payments are in good standing.  Necessary permits will be required once we authorize the upgrades.   We have had folks who, as Rent-to-Own Tenants have: built decks, fences, developed basements, and installed air-conditioning units.

No, the price of the house stays the same and you benefit as you have added value to the property.

When you go through our qualification process, our mortgage specialist will look at your household income and debt and determine a debt servicing ratio.  This is a formula used by the bank to make sure that you can afford the house and payment.

All of our Option-to-Purchase contracts include a written guaranteed option price, based on current market value.

Mortgage qualification is made up of two factors:

• Your credit score / debt ratios
• The property itself – an independent appraisal is done to support the loan. The bank will not lend $450,000 on a house that appraises for $400,000.

Beware of Rent-to-Own offers that have a fixed percentage annual increase to the price. At 5% annual increase, a $400,000 house today equates to:

• $420,000 at the end of year one
• $441,000 at the end of year two
• $463,050 at the end of year three

etc, etc.  These increases are unsustainable in Alberta today.

Just like building a home with a home builder or buying a home from a realtor, an up front deposit is required.  If you change your mind 10 months into the building process, you are not going to get a refund of that deposit.   We are looking for people who are very serious about home ownership and moving forward.  We are committed to you as long as your payments are current, and you are taking the required steps outlined in the qualification action plan.  If by chance, you do not exercise your option to purchase, you will not receive your option deposits back.

We will attempt to restructure the terms and we will do the best to make it work for you. Our initial contract always has an option to extend.  Our intentions are for you to buy the house, not rent it forever.  Therefore, we are going to do what we can to make sure that happens.  You will never lose your credits as long as you ultimately buy.  How long that takes is ultimately up to you and your unique financial situation. In Alberta’s current economic situation – we pride ourselves on working with job layoffs or changes and certainly have had to do what we can to accommodate clients.

We are not realtors selling someone else’s home.  We own each and every one of the homes and we make all the decisions regarding those properties.  You deal with us.

As an owner, you will be responsible for your own repairs.  We treat you as a “home owner in training”, and as such, our Option-to-Purchase contract states that you, as a Tenant Buyer, are responsible.

Pets are allowed!  But our standard rental policy is that all our homes remain non-smoking – until such time that you do exercise your Option-to-Purchase.  When you become the owner, then you can do what you wish in your own home.