Pathway Home Rent-to-Own Program
Pathway Home Properties, proudly based in Canada, is steadfastly committed to fostering secure, sustainable, and empowering communities in New Brunswick, Prince Edward Island, and Ontario. By utilizing our unique rent-to-own program, we empower individuals and families to transform their living situation from being tenants to becoming proud homeowners. At the heart of our work, we value integrity, inclusivity, and the transformative power of home ownership. We believe that every individual deserves a chance at the Canadian dream, regardless of their current financial situation. Our mission is to navigate each tenant-buyer along their unique pathway to home ownership, providing guidance, support, and a commitment to their long-term success. In doing so, we strive to redefine the housing market landscape, champion financial literacy, and catalyze community development, one family at a time.
Why Rent-to-Own Will Benefit You
You Pick the Home
Locked in Purchase Price
Build Equity
No Rent Increases
No Forced Moving
Force Appreciation
Build Your Credit
Future Certainty
Downpayment Savings
Make a House Your Home
Who Qualifies for Our Program?
Our unique rent-to-own program is specifically designed to serve individuals and families who may not currently qualify for a traditional mortgage but anticipate improved financial circumstances within the next 2-4 years. We provide an opportunity to lock in a home purchase price now, offering financial certainty and stability for their future living situation. By doing so, we extend the dream of homeownership to a broader spectrum of Canadians, ensuring that financial constraints do not hinder their pathway to a secure home.
Poor Credit
Poor credit can significantly affect one's ability to qualify for a traditional mortgage. Lenders use credit scores as a measure of a borrower's ability to repay a loan. A low credit score may indicate a history of missed or late payments, high levels of debt, or even bankruptcy, signaling to lenders a higher risk of default. Consequently, individuals with poor credit scores may face challenges in securing a mortgage or may be offered less favourable terms. There are several reasons why people may have low credit scores. They could be dealing with the aftermath of a job loss or a significant reduction in income, unexpected life events such as divorce can also lead to financial hardship and subsequently affect credit scores. Additionally, young adults or new immigrants might have low scores simply due to a lack of credit history. Read More
Self-Employed
Self-employed individuals in Canada often face unique challenges when trying to qualify for mortgage financing. Despite demonstrating a healthy income, they may encounter difficulties due to the irregularity and unpredictability of their income stream, which traditional lenders view as a higher risk. Additionally, income verification can be more complex for self-employed individuals, requiring extensive paperwork, such as tax returns and financial statements. Even with these documents, the income used by lenders is often the net income after business deductions, which can significantly lower the borrowing capacity, making it tougher to secure a mortgage when self-employed. Read More
High Debt Ratio
Canadians with high debt ratios often struggle to secure a mortgage due to lenders' emphasis on the Gross Debt Service (GDS) and Total Debt Service (TDS) ratios. The GDS ratio measures the proportion of the borrower's income that goes towards housing costs, including mortgage payments, property taxes, heating costs, and 50% of condo fees. TDS ratio, on the other hand, includes all other debts like car loans and credit card payments. If these ratios exceed the generally accepted thresholds of 35% for GDS and 42% for TDS, lenders may deem the borrower as having a high risk of default, making mortgage approval difficult. Read More
Consumer Proposal or Bankruptcy
Obtaining a mortgage in Canada can be challenging for those who have gone through a bankruptcy or consumer proposal. These financial circumstances significantly impact credit scores, often a crucial factor in mortgage approval. Bankruptcy remains on a credit report for six years from the date of discharge, whereas a consumer proposal stays for three years after the final payment. During these periods, traditional lenders may view these individuals as high-risk borrowers. Even if they demonstrate a steady income and commitment to financial responsibility, historical financial distress can hinder their chances of securing a mortgage. Read More
How Our Rent-to-Own Program Works
The first step involves applying. It starts with an online pre-approval process on our website. This ensures we start on the right foot, providing a comfortable launchpad for the rest of the application. Following pre-approval, we then move on to a brief but insightful phone interview. This interaction aims to further discern whether our unique rent-to-own program is the right fit. After these preliminary checks, you will then embark on the full application process. While this may be similar to a traditional mortgage application, rest assured that ours is much more forgiving and less stringent. Upon successful approval, we take transparency seriously and furnish you with a comprehensive estimate of the costs. This provides a detailed overview of the financial commitment, ensuring no hidden surprises await you.
The second step in the journey is an exciting one and commences once you have agreed to the terms of our Rent to Own program. At this point, we take a keen interest in your house search. We connect you with a professional, experienced realtor in your area of interest, who understands the local housing landscape, and our rent-to-own procedures and can guide you to find a perfect home. This process isn't rushed. You will have the time to house-hunt within an agreed price range, ensuring the final choice aligns with your budget and your lifestyle needs. Upon identifying your dream home, we step in to streamline the transaction process. We put forth an offer on your behalf, and once accepted we cover the legal fees, land transfer taxes and more.
The third step begins once the property you choose firms up, closes, and you move into your new home. The dynamics of your relationship with the property is unique in our Rent to Own program. Technically, you will be renting the property from us during the Rent to Own term, but your role extends beyond that of a traditional tenant. You are given the liberty to care for, maintain, and even enhance the property as if you're the homeowner. This flexibility allows you to start molding the property to reflect your personal style and comfort, creating a home that is truly yours, while you continue to fulfill your monthly rent commitments. With strategic renovations you can increase the equity you have in the deal by increasing the value of the home, making it easier for you to qualify for financing in the final step.
The fourth and final step is a momentous occasion, as it involves you purchasing the property from us, and thus completing the rent-to-own agreement. This occurs at a pre-agreed price, a figure that would have been transparently established at the inception of the Rent to Own agreement. Throughout the term of your rental, you will have been saving towards a down payment. This built-in savings plan ensures that you are financially prepared for the transition. As the term ends, you'll find yourself at the precipice of homeownership. Through our Rent to Own program, we provide a bridge to this milestone, allowing you to transition seamlessly from a renter to a homeowner. We strive to make this journey as accessible, transparent, and empowering as possible.
