FAQ | Veaudry Income Property Management

Rent-to-Own FAQ

How do I qualify for the program ?

The approval process is quite simple. If you have reliable income with the monthly income to support your payment and you are willing to be honest about your credit history, you may very well qualify. Fill in an application and we’ll do everything we can to work with you.

Can I still buy a home if I have damaged credit ?

Yes. You’ll be glad to learn that you actually can buy a home with damaged credit. In fact, it’s quite common. Now it depends on your individual situation but if you’re willing to be honest with us about your credit history, we will do our very best to find a way to work with you. We really are dedicated to helping people own their own home. Fill out an application with as many details as possible and we’ll see what we can do.

Can I qualify if I’ve just moved to Canada ?

Yes. Just because you arrive with no credit established does not mean you should be penalized. We will work with you to help you establish a good credit rating with the credit bureaus of Canada.

Does it matter if I am self-employed or work on a commission basis ?

Not at all. Our qualification process is very flexible and takes into account that your income may not always be guaranteed. In fact income verification is one of the easiest problems to fix in the home buying process.

Will I need a big down payment ?

You don’t need a large pile of money for a down payment. If you been held back by the idea that you have to save up to $30000 to $40000 or more to put down to buy a good home, forget it. Remember that the more you put down as a deposit, the lower your monthly payments will be. We can arrange a payment plan for any additional amounts that you wish to put down for the house. We have several programs available for you now. These programs are brand new and not widely known and are designed to help people buy a home with little money.

Can I use borrowed funds for my deposit money ?

Yes. That is one advantage of working with us. We are not like many financial institutions. We believe you are free to choose where you get your down payment.

What forms of down payment do you accept ?

Any certified funds (certified cheque, bank draft or money order) or a regular cheque for the initial deposit. The deposit will not be deemed to be received until the funds clear in our account.

How long does the paperwork take if I see home you have that I like ?

Once you submit a completed application to us, it usually only takes 5 business days to review it and approve it but it really depends on each applicants situation. We require spouses or common-law spouses to complete a separate application as well to improve your chances of being approved. Once your application is approved and we have received your Initial Option Deposit confirming your commitment to purchase, you will need to review and agree to the Rent-to Own terms and sign a Lease Agreement and an Option to Purchase Agreement. It could take as little as 15 to 30 days from the time we receive your application to the time you receive your keys to your new home.

What do I do when my lease term is up ?

When your lease term expires, you are ready to buy the house! We will take care of all the paperwork for you. You simply require your own lawyer. If you’re not quite ready to buy, we can sign a lease extension to suit your needs.

How do I qualify for conventional financing ?

To qualify for conventional financing, you must meet the lending institutions’ requirements. These requirements can vary depending on the institution you are dealing with. We can match you up with our Mortgage Specialist at the beginning of the term and he will ensure that you are ready to qualify as you near the end of the term. At that point, our Mortgage Specialist can work with you to find the best possible mortgage to suit your needs. They are experts in their field and we feel confident that they will find you the best possible deal.

Is the purchase price negotiable ?

No, the purchase price is not negotiable; however, the terms and conditions of the published monthly payments are somewhat negotiable. It depends on how much down payment you have to work with. We review and approve each application on an individual basis. The purchase price at the end of your term depends on the initial purchase price and the annual rate of appreciation in your area.

Who pays for the regular maintenance or repairs to the property ?

You do. You will be the direct beneficiary of any improvements you make as they will increase the value of your investment. Just as you benefit from improvements you make, so are you also responsible for your home’s maintenance and repairs. Please remember that all homes require periodic maintenance, so this should be budgeted for when considering the monthly payments.

Can I have pets ?

You decide – it’s your home! You no longer have to answer to a landlord. Remember, you are not just renting, you have an ownership stake in the property.

Who pays for property taxes, insurance and condo fees ?

Your monthly payments already include all of these costs. We pay these bills for the duration of the Lease Agreement to ensure that they get paid in a timely manner.

Can I sell the property ?

Once you have exercised your Option to Purchase from us you are free to do what you wish with your home. You may sell it the next day if you like!

What happens if I am unable to make my monthly payment ?

As with any lending institution, we require that you honour all obligations under the terms and conditions of our Rent-to-Own contract. You must pay the correct amount on time. If you fail to do so, you will be considered to be in “default” under the terms and conditions of the contract. If you default, we reserve the right to immediately commence legal proceedings to recover and secure our interests in the property. If this happens, you may lose all equitable interest in the property, including but not limited to: initial and additional option deposits, monthly option credits, etc. We will also be entitled to recover any and all legal costs that we may incur. In order to avoid any difficulties, we would like to ensure that you are fully aware and clearly understand our separate rights and obligations under the terms and conditions of the contract before you sign.

What happens if I choose to “walk away” from the agreement ?

If at any time during the term of the agreement you choose to “walk away” from your obligations, you will lose any and all equitable interest (deposit and monthly option credit) in the property and will be responsible for any and all additional expenses that may be incurred on our behalf.

Can I arrange to have a home inspection before signing the agreement ?

Yes. You are responsible for the costs of the inspection and you must attend the inspection along with us so that we all know what condition the house is in.

Is my initial deposit refundable if I change my mind ?

$500 of your initial deposit is non-refundable once your application has been accepted. A great deal of work, time and people are required to move an application forward prior to purchasing your home. This non-refundable portion ensures that our costs are covered in the event that you withdraw your accepted application. When you sign the Lease Agreement and the Option to Purchase, your initial deposit is non-refundable.