Rent to own with a small down payment in Ontario
Many people look at rent to own because saving a traditional down payment has stalled. Programs differ in how much they ask up front, usually as a non-refundable option fee, and in how much of each month's rent is set aside toward the purchase.
A lower upfront fee can mean a higher monthly rent premium or a higher locked-in purchase price, so compare the whole deal rather than one number.
- Option fee: find out if it is credited to the price and whether any part is refundable.
- Rent credit: ask what share of rent is set aside and how it is held.
- Purchase price: check whether it is fixed now or set at the end of the term.
- Maintenance: confirm who pays for repairs during the rental.
What it costs
The main cost drivers are the option fee, the monthly rent premium, the agreed purchase price and the term length. Smaller upfront payments are often offset elsewhere in the contract, so compare the total over the term.
Top 3 by our score
Ranked from our published scoring of public Google reviews for rent-to-own home programs.
- 1. The Polsinello Real Estate Team955.0★ · 1222 reviews
- 2. Trusted Property Solutions935.0★ · 226 reviews
- 3. Team Niaz Real Estate Services935.0★ · 186 reviews
FAQ
- Is the option fee refundable?
- Usually not if you walk away or fail to buy. Ask how it is credited if you do complete the purchase.
- Does a small down payment hurt my mortgage approval later?
- Lenders will look at your total savings, credit and income at the end of the term, so build as much equity and credit strength as you can.