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is it advisable to rent to own a house in canada if you are a newcomer?

i'm a newcomer, is there any difference between renting a house and rent to own it? if you could pay monthly rent then why not spend it in a rent to own house? help me... i'm a newcomer, is there any difference between just renting a house and rent to own it? if you could pay monthly rent then why not spend it in a rent to own house? help me...

Public Comments

1. Seems like they are the same thing to me. Renting to own will take 30 years to pay off. Either buy or rent. Think about it...you know ANYONE who has ever successfully rented to own a house?
2. Yes, there is a large difference. Many people with poor credit get sucked into Rent to Owns, thinking its a way to get a house that will be all theirs. And while it is possible to do, its not a good way for everyone. Many people who do not qualify for the First Time Buyers program, or who cannot come up with the down payment also go this route. The "rent" you will be paying, is usually a few hundred dollars more expensive than just a regular rental, the difference going to pay off what would be a down payment. When, after a few years, you have paid off the down payment, you will still be responsible to find a mortgage company willing to take you on, for the remainder of the moneys owning on the house. A down payment can be anywhere from 10%-30%.......Many people find out after paying off the down payment, that they are still not eligible for a mortgage, due to credit problems, and then loose all the money they have already paid. Also, with many rent to owns, you are responsible from day one, if anything breaks in the house, like the furnace, or any repairs that need to be done, like the roof. If you have poor credit, but will be repairing it, this may be a way to go for you. I would talk to a financial consultant first, to see what your odds of getting approved for the mortgage will be, when your credit issues have been taken care of. If you have no credit issues, you could go this route, by why not just pay a down payment, get the mortgage, and cut out the middle man.....it will no doubt be less expensive in monthly bills.
3. Rent to own is as much a scam as anything else. You need to rent until you know for sure what is what in Canada. You may find you hate the area and the job and want to move elsewhere. Home ownership is only for people who will be staying for sure in the same place for at least 7 years. Shorter than that and the extra cost of owning will be much more than renting.