Rent to Own Refinance in Canada

If you are looking for a flexible option for staying in a house when you have lost control of mortgage payments, received a demand notice from your lender, facing potential foreclosure, or you are within your redemption period after a Statement of Claim has been issued, then a Rent-to-Own Refinance may make a lot of sense. This is when you sell your home, lease it from an investor with the intention of buying the home back. How does renting to own work? It functions much like the way it sounds. An investor leases a property to a homeowner turned tenant-buyer. At the end of that time period, the tenant-buyer can buy the house, walk away from it, extend the agreement, or just continue renting.

Some homeowners need to take advantage of this process because they have fallen behind on house payments. They find an investor to buy the house and lease it back to them. They put down a deposit and then start paying rent. The investor may credit some of the rent as part of the purchase price as well. If the tenant has found some financing to start a new loan at the end of the agreement, the tenant-buyer purchases the house back.

If you’re looking at this from an investment point of view, you’re getting fair size deposit or discount on the front end of the deal. You get to collect rents at a premium for a set period of time. Your rent is likely to be near the higher end of what people are paying in that neighborhood. If the tenant-buyer improves their situation, they will buy the home back at a pre-set purchase price without realtor costs.

If you want to know how Rent-to-Own Refinance works in Canada, here is a basic overview of the steps involved.

The agent/investor evaluates your credit, employment history and likelihood of being able to purchase the home back at the end of the lease term. Credit is of very little concern. The primary focus is the property investment, and the likelihood of the tenant-buyer being able to buy the home back.

In a typical Rent-to-Own Refinance, The rent starts, and the Investor Landlord takes both a deposit and a security deposits. These monies generally come from the proceeds of the sale, and not an out of pocket expense. Parties sign a purchase buy-back agreement as well as a traditional lease. A portion of the rent counts toward the eventual purchase price. This percentage is at the landlord’s discretion but is a part of the agreement that you negotiate.

Our Programs are a bit different in that there is no option down payment, no option credit, and little or no appreciation in the property value over the lease term. A tenant-buyer simply needs to save over the term, and buy the home later.

Why does this make sense?

From the investor/landlord’s perspective:

  • Your rent is higher than what you would get from a standard tenant that is not interested in purchasing.

  • The tenant-buyer is much more likely to respect the house.

  • If the tenant-buyer makes the purchase, you have a guaranteed price without real estate commissions.

  • If the tenant doesn’t make the purchase, you have the option of extending the term, evicting, or selling on the open market at a likely higher than agreed price.

From the tenant’s perspective:

  • You avoid foreclosure which would remain on your credit for 6 years

  • You avoid having to look for a new home, and finding a new neighborhood that is suitable for your family. If you have kids, this can be a daunting. If you have pets, your rental options are limited.

  • You get to build credit and improve your situation during the term with a contract in place ready for you to complete and buy the home back.

  • No need to start from scratch and look again for your dream home. You are likely already living in it.

Why is could this be a bad deal?

From the investor/landlord’s perspective:

  • When the market trends up, you might have a set price below market value.

  • Tenant-buyers can walk away from the agreement and you’d need to find new tenants at a lower monthly rent.

From the tenant’s perspective:

  • You have no guaranteed loan at the end of the term. You need to work to improve your situation and save the necessary down payment to buy back.

  • The rent is a bit higher than market rents.

Amansad Financial structures rent-to-own situations very differently than many of the competitors. Our Investor connections provide us greater flexibility while ensuring we follow Canadian Mortgage Insurer regulations. Secondly, we only assist homeowners that are currently in the home that are having trouble keeping the payments up, and/or are potentially facing foreclosure or power of sale. If you are finding it difficult to refinance or facing foreclosure or Power of Sale in British Columbia, Alberta, or Ontario we can likely assist with an IPR (Investor Purchase Refinance) Agreement.

Below is a summary of our preferred urban markets by location: BC:

  • Vancouver & the Greater Area
  • Victoria
  • Nanaimo
  • Abbottsford
  • Victoria
  • Kelowna
  • and other municipalities in southern BC with populations north of 50,000


  • Edmonton & direct surrounding area
  • Calgary & direct surrounding area
  • Leduc
  • Red Deer
  • Lethbridge
  • Lloydminster


  • Saskatoon
  • Regina


  • Toronto and the entire GTA
  • Hamilton
  • Ottawa
  • and other municipalities in southern BC with populations north of 50,000

We can analyze your situation to help you determine what we can offer. If we can’t assist, we will at least point you in the right direction.

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