FAQs
Deciding
Does a rent-to-own program cost more than renting or buying?
A rent-to-own program costs more than just renting because you are also saving up for a downpayment at the same time. With the StepHome program, your monthly payments are covering both the rent to live in your home currently plus the amount that is being set aside for the downpayment to purchase the home at the end of the StepHome term.
Why rent to own and not just rent?
When you rent the home you live in, your monthly payments go to your landlord who gets to build equity in the home that you are renting. With StepHome, you are building equity in your home from the day you move in.
Applying & Prequalifying
What are the minimum requirements to qualify for the StepHome program?
To qualify for the StepHome program, you need to have a minimum downpayment of 2.5% or $10,000, whichever is greater. There is no specific minimum household income to qualify for the StepHome program - it will depend on the purchase price of the house you choose and the size of your downpayment.
Is a credit check required?
Yes, a credit check is required as part of the prequalification process. Some rent-to-own companies do not require a credit check, which means it is easier to get approved up front, but later on, you may be faced with a situation you can’t afford. At StepHome, we want to set our homebuyers up for success and part of being able to do this is to review your full financial picture so that we can make sure that you can afford your payments not just now in the short term, but also down the road when your monthly payments switch over to mortgage payments.
Why is a down payment needed for a rent-to-own program?
The downpayment indicates your commitment to the program and shows you are going to care for the property you are going to live in; this is similar to why a bank wants you to put down a downpayment on a home you are purchasing.
My property is in foreclosure - can the StepHome program apply to foreclosures?
Yes, depending on the situation, we can offer the StepHome program for foreclosure situations. Please contact us so that we can discuss your specific situation. There are many different reasons why a foreclosure can happen - it is best to review your unique situation to see how we can help.
Choosing the home
Do I need to have a real estate agent? Am I required to work with a StepHome real estate agent?
You can do either - it’s your choice!
Can I choose any home?
You choose the home you want within your budget, but it will need to fall within certain guidelines such as area population, property type, etc. At this time, we cannot accommodate condos and mobile homes in our program.
During the term
How much are the monthly payments?
The amount of the monthly payments will depend on the size of your downpayment and the purchase price of the home.
When is rent due and how is it paid?
Rent is typically due the 1st of the month but this date can be flexible to work with your situation. Monthly payments can be made via etransfer, pre-authorized payment through your bank, or personal cheque.
Can the rent or home price go up?
No, the rent and home price are set for the term.
Who is responsible for managing and covering the costs of the property maintenance?
You are - this is your future home and what you invest in time and money into the property will maintain your home value and contribute to its growth in equity.
Who pays for the property tax and home insurance?
These costs are covered through the rent-to-own program. When you purchase the home at the end of the term, these costs will be transferred to you.
Can I rent out the basement, a section of the home, or the entire home?
You can rent out the basement, a room or a section of the home, but you must be the primary resident. Prior written consent is required.
Home security
Who actually owns the home during the rental term?
The Home Buying Partner owns your home during the rental term until your purchase of the home is completed at the end of the term (or sooner if you choose an early purchase option).
Can I lose the home before the term is up? How am I protected?
No, you cannot lose the home. You have first right of refusal on the home in all situations. Our Home Buying Partners are prequalified to ensure they can carry the home for the entire term.
Can the home be sold while I'm living in it?
This would be a highly unlikely scenario, but yes, the home can be sold while you are living in it before you have purchased it. A sale of the home would be a sale/transfer from one Home Buying Partner to another, but with the same terms as were set at the start of your rent-to-own term. A sale/transfer between Home Buying Partners would not impact you.
Buying your home
Can I purchase the home sooner than the end of the term?
Yes, early purchase options are available on all of our StepHome programs.
What if I don’t want to go through with the home purchase at the end of the term?
You are not obligated to purchase the home at the end of your StepHome program. If you choose not to go ahead with the purchase, you still walk away with your downpayment and savings, less any discharge fees.