How It Works

It starts with a contract

With ‘Buy Option’

Like a regular home purchase, we sign a Sale And Purchase Agreement. The difference is you are given 5 years to “close” on the deal.  So, one of the subjects in the Agreement is a Lease Agreement with 5-year Buy Option.

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Payments

  • The potential buyer pays the seller a one-time 5% non-refundable deposit. This is a payment that gives the buyer the right or option to buy the home within five years.

    Following the down payment, the buyer pays monthly rent, which includes payment towards loan principle, and interest.

  • The house is locked in at the agreed upon price and you pocket the market gains as the value of the house increases over time.

Exercise Buy Option

  • Now you can remove subjects and go ahead with the purchase. Congratulations!!

  • The buyer has the flexibility between 1 and 5 years to purchase the home for the agreed upon price – regardless of what the home is worth. And in the Lower Mainland, the equity usually goes up over time and the buyer gets to keep the market gains.

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Purchase Price – FROZEN  FOR 5 YEARS

The purchase price includes a 2.5% administration fee and is frozen for the duration of the Agreement.

It’s A Simple Process

  •  Buyer and Apex sign a Purchase & Sales Contract 
  • Contract valid for 5 years – purchase price is frozen 
  • Buyer and Apex sign a 5 year Rental Agreement
Buyer makes 5% down payment

Down payment – held in escrow towards future purchase

Buyer begins making monthly payments to cover the mortgage held by Apex
Example: exclusive buy-option when exercised at the end of year 5
A Rent to Own transaction starts with the contract. The potential buyer pays the seller a one-time 5% non-refundable lease option. This is a payment that gives the buyer the right or option to buy the home at some point in the future. That can lead to a significant financial advantage considering property value increases in the lower mainland. In North Vancouver, that average has been over 6% per year since 2005.
For example, let’s say the price of your home is $2 million, which is about the average price of a home in North Vancouver.
With a Rent-To-Own agreement, you would only need $100,000 to buy – a lot less than the $600,000 or more down payment most banks require.
The buyer and seller set a purchase price for the home in their contract. At some point between 1 and 5 years, the buyer can purchase the home for that price – regardless of what the home is worth. And in the Lower Mainland, the equity usually goes up over time and the buyer gets to keep the market gains. The buyer has the flexibility to buy the home at any point during the first 5 years. The new owner then usually applies for a mortgage when the time comes to purchase the home; and since the owner has built up equity in the home, they have a much better chance of the mortgage going through successfully.
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It's an Easier Way To Own A Home

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