I am interested in your program, what do I do next?
Simply click on “Apply Now” button and fill in the 10 questions. Apply in confidence as we do not do a credit check at the time of applying.
Is rent to own legal?
Can I buy a home with no money down?
Yes. Rent to own is legal in Canada, USA, Australia, UK and several other countries. Currently, the Canadian government is talking about Rent to Own as a viable option for Canadians to get into homeownership. Furthermore, in the 2023 Special Issue of Macleans magazine: The Year Ahead, it is predicted that the Rent to Own Real Estate Model will take off.
How much is the down payment in Sprout Properties Rent to Own Program?
How is the amount of rent determined?
What are the benefits to Sprout Properties Rent to Own program?
What are the terms of Sprout Properties Rent to Own Program?
What type of lenders do you work with, are the rates comparable to conventional lenders?
Is there interest added to my purchase price?
Who is the purchase price paid to at the end of my rent to own program?
How is the end-of-program purchase price determined?
What is the option deposit and how is it calculated?
What is the $1000 commitment deposit for?
Is the $1000 fee refundable if we are turned down for your rent to own program?
Can I make a lump sum payment during the program?
What is the process if the renter wants to end the rental agreement?
If a client needs to end the agreement, the option portion will be returned minus any costs incurred. This is similar to breaking a mortgage.
Getting Started
Understanding Rent To Own
What areas do you work in?
Am I allowed to make improvements to the property?
Are all of your Sprout Properties Rent to Own homes pet friendly?
Can I sell my home after the Sprout Properties Rent to Own term?
What if the market value of the home increases drastically like it did during the pandemic?
What if I need more time at the end of the program?
Do I get to choose my home?
What is the process if the renter wants to end the rental agreement?
Do I need to get a home inspection?
How do I request an offer on a Sprout Properties home?
Are there any circumstances in which you might not buy the first home I choose?
Are there any circumstances in which you might not buy the first home I choose?
When is my rent due?
Who pays for the home insurance?
Sprout Properties Rent to Own Program does require a small down payment of 3% or $10 000, whichever is higher. We will work with you to help you find ways to secure the funds for your home. Sign up for our newsletter for education tips on saving money, credit, and so much more!
Sprout Properties Rent to Own Program requires a minimum of 3% of the purchase price of the home to enter our program or $10 000 minimum whichever is higher. If you are close to this amount please reach out and have a conversation with a member of our team. We would be happy to help you come up with a plan to get to $10,000 or 3%.
Rent will be similar to rents in your area for the same size home. Please note that your rent must cover our expenses (mortgage, home insurance, and property taxes).
100% of the option goes towards your purchase. The specific rent and option portions will be clearly defined for you.
Our expert team members will ensure that you are set up for success at every step of the program. They will assist you in finding the perfect home, building or repairing your credit score, saving for your down payment, obtaining your mortgage, and buying your home at the end. We have been helping families transition from renters into homeowners since 2015. We have the team, skills, and experience to help you succeed!
Sprout Properties Rent to Own Program is 2-4 years in length. Each program is uniquely designed based on your situation. We have flexible payment options and terms. In many instances you will get to choose, for example, whether you want to fast track in 2 years or choose a 3 year program to give yourself a bit more time to save.
We work with all lenders. Our goal is to get our tenant buyers qualified with an “A” lender by the successful completion of the program. If something happens and the A lenders deny you a mortgage, we have other mortgage options available for you.
No. We pay the mortgage while you are in Sprout Properties Rent to Own program so there is no interest charged to you. Once you buy the house you will pay interest to your lender. We charge an annual appreciation fee (that is how we make money). This is determined at the beginning of the program along with the final purchase price, all payments ,and dates. These will be outlined in your contract.
You will purchase your home from us in a private sale.
Future purchase price is determined at the beginning of the program – no surprises! Your home will be appreciated annually, based on the location and the historical data of your area.
The initial and monthly option deposits count towards the purchase price of your home when you exercise your option to purchase. This amount is separate from the rent. We calculate this number based upon the required down payment you will need (plus closing costs etc) and divide it over your term in the program.
The $1000 fee shows that you are committed to the program before introducing you to our mortgage broker for assessment. This $1000 will count towards the purchase price.
Yes. As we are working from the information you provided us in your application, we can usually tell whether or not you will be accepted into the program by reviewing this information; however, in some instances, we may not be able to move forward. In these instances, we will return your commitment fee.
Yes, at any time you are allowed to make a lump sum payment towards your total option amount.
Choosing Your Home
Am I required to have renters insurance?
Who pays the taxes on the property?
How do I qualify and get approved for the Sprout Properties Rent to Own Program?
Qualifying for Rent To Own
Will a bankruptcy or consumer proposal stop me from qualifying for Sprout Properties Rent to Own Program?
Will I still qualify for the Sprout Properties Rent to Own Program with bad credit?
I am self-employed. Am I able to qualify for the Sprout Properties Rent to Own Program?
What is a credit score?
How can I improve my credit score?
Understanding Your Credit
What types of loans will help improve my credit score?
Will a credit check negatively impact my credit score while I am working on improving it?
What is the difference between “Hard hits” and “soft hits” on my credit?
Frequently Asked Questions
We operate Canada-wide with a few exceptions. At the moment, we are not operating in Nova Scotia due to a tax on investors that do not live in the province, and we are not operating in Quebec. We hope to be able to serve both of those provinces soon! We currently offer Rent to Own Programs in British Columbia, Alberta, Manitoba, Saskatchewan, Ontario, New Brunswick, PEI, and Newfoundland.
Yes, in fact, we highly encourage it. You can paint, put up a fence, and make other improvements to change your house into a home you love. Also to note: When you improve the property in our program you win! We have already set the future purchase price for you, so any improvements that increase the value of your home goes directly into your pocket as sweat equity.
Yes they are. We love animals and we believe they are part of your family too. There will be no need to move, and no potential for your application to be rejected based on your furry family members.
Absolutely! After you have purchased the home at the end of our program you are free to do as you wish with your home, including selling it.
The agreed upon price must be honoured. Sprout Properties cannot back out of the deal or change the price. You will have a legally binding contract with the first option to buy the house at the agreed upon price.
We understand that sometimes life happens and you may require additional time to complete the program. We will do our best to extend any program to give you additional time if it is needed.
Yes you do. We send you shopping with one of our qualified realtors to ensure that you get the perfect home for your family at the right price. Our realtors are local to each area so they are familiar with the markets and are experts in that area.
What is the process if the renter wants to end the rental agreement?
If a client needs to end the agreement, the option portion will be returned minus any costs incurred. This is similar to breaking a mortgage.
Our expert team members will ensure that you are set up for success at every step of the program. They will assist you in finding the perfect home, building or repairing your credit score, saving for your down payment, obtaining your mortgage, and buying your home at the end. We have been helping families transition from renters into homeowners since 2015. We have the team, skills, and experience to help you succeed!
Yes. All of our properties require a home inspection before we finalize the purchase. Although home inspections are limited in their scope, we have saved a few of our families from buying houses that had serious deficiencies. It is important to us that you get a safe and secure home, and that is why we work with professionals throughout the entire process. We are not concerned about inexpensive and easy to fix deficiencies as these are to be expected in almost every home. Your home buying process needs to be a great one, and we will do everything we can to ensure it is.
We can buy you almost any house, on or off the market. Once you have found the home you love, you let your realtor know that this is the house you choose. Your realtor will then contact Sprout Properties, and we will begin the negotiation process. At this time, the remainder of your initial option is due, and you will need to have $400-$700 available for the home inspection.
Yes, in rare circumstances there may be a home that we would not be comfortable moving forward to purchase. If there are significant deficiencies in the home and you do not have the financial means or skills to repair these deficiencies, then we would not move forward with the purchase. Our goal is to ensure your success in Sprout Properties Rent to Own Program, and, therefore, in this example situation, it would be unethical for us to purchase this on your behalf. We always aim to give you as much flexibility in your home of choice. Our team of professionals will explain any issues found during viewings, the inspection process, or through the lawyers during the due diligence process.
Yes, in rare circumstances there may be a home that we would not be comfortable moving forward to purchase. If there are significant deficiencies in the home and you do not have the financial means or skills to repair these deficiencies, then we would not move forward with the purchase. Our goal is to ensure your success in Sprout Properties Rent to Own Program, and, therefore, in this example situation, it would be unethical for us to purchase this on your behalf. We always aim to give you as much flexibility in your home of choice. Our team of professionals will explain any issues found during viewings, the inspection process, or through the lawyers during the due diligence process.
Your rent is due at the beginning of each month.
The insurance on the home is carried by the person on title for the home. The insurance on the contents of the home will be carried by you, the tenant buyer. This is called renter’s insurance.
Yes. We require all tenant buyers to carry renters insurance so their contents are protected. Our home insurance policies do not cover your contents - they cover the physical building and property only.
Sprout Properties will be responsible to make the property tax payment annually. The total monthly payment for you, the tenant buyer, is inclusive of this expense. Note: This expense will become yours once you purchase the home at the end of the program.
The first step is to complete the online questionnaire. It is only 10 quick questions! Next step is setting up an appointment to answer any remaining questions you have. At this time, we can explain the program in more detail.
No, in fact, many people in our program have overcome a credit issue such as a consumer proposal or bankruptcy. We will look at your situation and determine whether or not we can help you obtain a mortgage by the end of our program. Sprout Properties Rent to Own program works well for people who may need a bit of extra time due to a past consumer proposal or bankruptcy. This is an instance when Rent to Own may be a great option for you to get into or back into homeownership!
Yes it is possible to still qualify for Sprout Properties Rent to Own Program with bad credit. We help people repair their credit through an actionable plan and financial literacy. Additionally, we have a financial literacy workshop available at a discount to all clients in our program. We believe that you should have access to all of the tools for success, and will support you in any way we can to ensure that you have all of the information needed to be successful.
Yes. We work with self-employed people all of the time. We can provide expert advice on how to make your business work for you so that you will qualify for a mortgage within 2-4 years. Sprout Properties experts understand the difficulties of being self employed and trying to obtain a mortgage. We work with industry experts to ensure you know exactly what you need to do to become a homeowner through our program.
A credit score is a numerical expression based on an analysis of a person's credit files, to represent the creditworthiness of an individual. A credit score is primarily based on a credit report, information typically sourced from credit bureaus.
Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt.. Lenders use credit scores to determine who qualifies for a loan, at what interest rate and what credit limits.
Credit scoring is not limited to banks. Other organizations, such as mobile phone companies, insurance companies, landlords, and government departments employ the same techniques. Digital finance companies such as online lenders also use alternative data sources to calculate the creditworthiness of borrowers. (Source: wikipedia)
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Monitor your payment history
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Use credit wisely
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Increase the length of your credit history
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Limit your number of credit applications or credit checks
Our team will go over all of this in greater detail. We have many sources of educational information to ensure that you not only get a home at the end of your program but you increase your financial literacy, and hence, your ability to use credit wisely in the future.
One way to improve your credit score is to use different types of credit
Your score may be lower if you only have one type of credit product, such as a credit card.
It's better to have a mix of different types of credit, such as:
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a credit card
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a car loan
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a line of credit
A mix of credit products may improve your credit score. Make sure you can pay back any money you borrow. Otherwise, you could end up hurting your score by taking on too much debt.
We ask that you first pull your own credit (if you have not already done so). This will not impact your credit score. When our team does a full mortgage application on you there will be a hard hit on your credit. We need to see your full credit history in order to ensure your success in our program. Fortunately this is done at the beginning of the program, and therefore, will not negatively impact you in 2-4 years when you purchase your home.
“Hard hits” are credit checks that appear in your credit report and count toward your credit score. Anyone who views your credit report will see these inquiries.
Examples of hard hits include:
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an application for a credit card
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some rental applications
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some employment applications
“Soft hits” are credit checks that appear in your credit report but only you can see them. These credit checks don't affect your credit score in any way.
Examples of soft hits include:
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requesting your own credit report
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businesses asking for your credit report to update their records about an existing account you have with them
(source: Government of Canada)