Why Do You Rent?

Every tenant has his or her own reasons for renting.  At one time or another you probably asked yourself, “rent or own”?  It’s a delicate question and should be handled with careful thought and consideration.  Here is an easy way to differentiate between your two options:

To rent is to focus on today.  To own is to plan for the future.

How the Renting Cycle Starts

Maybe you’re in your late twenties and you’re eager to leave your parents’ place to start a life of your own.  Or perhaps your job promotion is forcing you to relocate to a new city far away.  Or maybe you began working in the same town where you received your post secondary education and simply extended your existing apartment lease.

Whatever situation you found yourself in, you likely debated for a moment between renting and owning your home.  Everyone has their personal reasons for choosing to rent, but what if there was a way you could experience the benefits of both?

The unfortunate cycle of a renter’s lifestyle is that with hundreds or thousands of dollars going towards rent each month, it is very difficult – in some cases even impossible – to save up for a down payment in the future.  Which one of the following reasons for renting applies to you?

Bad Credit

One of the fastest ways to rule out your ability to own a home is to take a glance at your damaged credit report.  If you’ve ever gone through a bankruptcy or a consumer proposal, these events stay on your credit report for 7 years – just like a regrettable traffic violation.  Much like your car insurance, your credit report is affected by such an incident, ultimately destroying your chances of qualifying for a mortgage with any reputable lenders over the next few years.

If you’ve ever made late payments on your credit card, line of credit, cell phone or cable bill, these too will show up on your credit report.  If you’ve only had one slip-up in the last few years, this likely won’t affect your credit, but if you have more than 2 or 3 late payments in your history, these will have negative effects on your mortgage application.  

Oftentimes people are forced to rent when their credit rating makes it impossible for them to obtain a mortgage from any credible financial lenders.

Lack of a Down Payment

Since 100% Loan-to-Value mortgages are no longer existent in Canada after the recent economic recession, a down payment is required if you want to own a property in this country.  For many Canadian citizens this is far out of reach, which means that renting may be their only viable option.  

Canadian mortgage professionals state that if you don’t have 5% to put into a property purchase, then you shouldn’t buy the property.  This is a consumer safety measure to ensure that homeowners do not find themselves in arrears on their properties because of overextended mortgages.  As of 2009, Canadian mortgages in arrears were stable at only 0.27%.

Your Landlord

Are you a tenant who’s built an excellent relationship with your landlord?  It’s very common for tenants to feel as though they don’t want to leave their current living situation because they have a landlord who is kind, generous, and always there to fix problems when they occur.  If you feel comfortable and satisfied renting where you are, then it is very common to dismiss any thoughts of possibly owning a property in the future.

Love for the Community

Finding a neighbourhood you’re happy with can be a difficult task.  Especially if you have children, living in a good community is likely a high point on your priority list.  You don’t want to uproot your family and move somewhere that becomes less enjoyable or even unsafe.  

Maybe you currently have a wide range of amenities close by.  Your favourite restaurant is right around the corner, your daughter’s dance studio is just a five-minute drive away, and your son’s school is the next block over.   It’s easy to feel trapped, but it’s important to remember that there are many wonderful communities throughout the city for you to enjoy.

Mortgage as a Debt

Many people don’t think of a mortgage as an investment, but rather as an ominous debt they consider impossible to handle.  The responsibility seems overwhelming and too much to manage on a monthly basis.

Change your mind frame.  Think of a mortgage as an investment in your future.  A mortgage on a property that you own, helps you build wealth for you and your family.

Fear that Real Estate is a Bad Investment in Canada

The assumption that Canada’s housing market will drop in the months ahead is a common thought among many buying Canadians today.  They feel as though Canada must follow the United States in drastically reduced prices, foreclosures, and bad mortgages.

By taking a closer look at reports produced by the CMHC, you’ll see that:

• Canada uses far more stringent lending practices than the United States.

• 94% of Canadian mortgages are held with credible financial institutions (as opposed to special purpose operations and non-depository intermediary companies as were the case in the USA)

• The average Canadian home owner has 30% mortgage debt and 70% equity in their property

What if you could rent…to own

Are you tired of renting?  We have a feasible plan to help you own a property!  According to your current financial situation and credit score, we will customize a rent-to-own agreement to suit you.  With a small deposit upfront, you can continue renting in the interim, with a portion of your monthly rent going towards your future down payment on the property.  

You can enjoy the comfort of renting now, with the opportunity to have a home of your own in the future!  Don’t waste another moment and call us at 647-280-1315 or email us today at This e-mail address is being protected from spambots. You need JavaScript enabled to view it to find out more about this unique program, built with you – the resident – in mind!