Most programs work on the same basic principles:

1. You sign a lease for a set period of time, typically 18 months to 5 years, during which you live in the home, caring for it as if you already own it.
2. Prior to moving in, you put a deposit on the home, called an “Option Deposit”.
3. During the time you live in the home, you make monthly payments, much like rent. However, a portion of each payment is credited towards your purchase of the home at the end of your contract.
4. At the end of your contract term, you have the option to purchase the home you’ve been living in.

However, not all programs are created equal.

We want you to buy the home at the end of our term, and try to set you up for success from the beginning.  As an example, there is no point in trying to fit you into a $500,000 home if your budget will only allow a $300,000 home.  That would do neither you nor us any good.

• Qualifying:
  We do not have the same rigid qualifications required by banks and conventional lenders. We are able to work with you even if you are self-employed, have no credit history, or even a poor credit history.  We do work with the same general “debt service ratios” (noted below) that banks use, but have latitude when working with families to accept them into our programs.
• Lease Payment:
  The monthly lease payment covers all property taxes, house insurance, and strata fees (if applicable). You will be responsible for utilities and insurance on personal belongings. A rough guideline used by CMHC and conventional lenders, such as banks, stipulates that your monthly housing costs shouldn’t be more than 32% of your gross household monthly income. Housing costs include mortgage principal and interest, taxes and heating expenses. In order to line you up for success, we also suggest that your lease payment follows this guideline.
• Option Deposit:
  Our program does require an Option Deposit which is like a small down payment. This assures us that you are serious about purchasing the home, and it will be the seed funds with which you will grow your down payment and equity. This Option Deposit could be as low as 2% of the property value, although the exact amount will be dependent on the value of the home and the amount you can afford on a monthly basis. The higher the Option Deposit is, the more down payment you will have at the end of the term. A larger deposit may also reduce the monthly lease payment.
• Monthly Credit:
  When your monthly lease payment is paid on time we will credit a portion of it back to you. The exact amount of this credit will vary between each property and will depend on other factors, such as home value and Option Deposit given. This will add up to thousands of dollars, and quickly grows your Option Deposit several times over.
• Down Payment:
  The combined Option Deposit and accumulated Monthly Credits will be put towards your down payment when applying for bank financing at the end of the term agreement.  The goal is to have you accumulate approximately 7% of your purchase price as the down payment when we transfer title of the property to you.
• Appreciation Equity:
  In addition to building a Down Payment, you will be benefiting from any and all appreciation that occurs above the Buyout Price that will be established when you sign up for our program.
• Purchase Price:
  Under our ‘U Pick It’ option we will start with today’s value and build in a realistic annual appreciation to establish the buyout price at the end of the term agreement. Our goal is that you succeed by purchasing the home from us at the end of the term.
• Credit Repair:
  If your credit history is an issue, we also offer the services of qualified professionals who will work with you to rebuild a healthy credit rating and reposition you for your best chance at conventional bank financing.
• Bank Financing:
  The ultimate goal is that you qualify for bank financing and buy us out. If, at the end of the term, you are not able to qualify for bank financing despite your and our best efforts, we will consider options so that you do not lose the equity you have built into this home. This may mean additional time to enable further credit improvement and/or increase of the down payment. We may even be able to finance additional down payment if that’s what the lender requires.