Genevieve Saint Hilaire and her spouse took an unconventional route when entering Sault Ste. Marie’s housing market by opting for a rent-to-own agreement instead of the traditional down payment for a mortgage. Initially skeptical of Requity Homes’ rent-to-own model, Saint Hilaire eventually investigated further and found it to be appealing. They secured their chosen home by making a two percent deposit, with Requity purchasing the property on their behalf. Alongside paying monthly market rent, they allocated an extra $375 each month towards a down payment, allowing them to reside in the house they aimed to own while saving up for it. After a year, they accumulated enough funds to apply for a mortgage and buy the house outright.
Requity’s founder and CEO, Amy Ding, established the company based on her own challenges purchasing a home as an immigrant in Canada. Ding recognized that inadequate down payments were not the sole obstacle preventing Canadians from homeownership; factors such as insufficient credit history for newcomers and challenges faced by self-employed individuals also played a role. Clients entering into agreements with Requity Homes typically have up to three years to buy the property, with a five percent annual increase in the home’s purchase price to reflect market changes.
David Daily from Sudbury shared his experience of trying to exit a rent-to-own contract with a different company due to unexpected increases in house prices. Despite potential risks, rent-to-own arrangements can be advantageous for individuals lacking the financial discipline to save for a down payment regularly. Financial experts suggest exploring alternative savings methods like tax-free savings accounts for prospective homebuyers.