Rent To Own

dannial

New Forum Member
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Feb 12, 2010
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#1
I am running a Lease With An Option to purchase program in Ontario. Most of my clients have a 24 month lease signed with the ability to exercise their option to purchase at the end of 24 months. The Purchase and Sale agreement is signed at the end of the 24 months with the agreed upon price at the beginning of the 24 months. They are prepaired financially with me to go for a high ratio insured mortgage when and if they decide to exercise their option to purchase.
Currently, CMHC requires the down payment and rent credit be held in trust by a 3rd party ie: bank trust or lawyer.
Does anyone have any stategy to allow me to circumvent this CMHC trust rule besides "gifted money or low ratio mortgage"
I look forward to your input.
 

Aneta

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Sep 7, 2007
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#2
Hi there: Not sure I can help, but I have question about: "CMHC requires the down payment and rent credit be held in trust by a 3rd party ie: bank trust or lawyer." Is that written or published anywhere?
 

dannial

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Feb 12, 2010
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#3
QUOTE (Aneta @ Mar 1 2010, 06:11 PM) Hi there: Not sure I can help, but I have question about: "CMHC requires the down payment and rent credit be held in trust by a 3rd party ie: bank trust or lawyer." Is that written or published anywhere?

Hi, I sat with the local Regional Manager for CMHC and these are the exact words that she used.
 

AndyLuchies

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Sep 14, 2008
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Hamilton
#4
QUOTE (dannial @ Mar 1 2010, 07:30 PM) Hi, I sat with the local Regional Manager for CMHC and these are the exact words that she used.


A mortgage broker I talked to (who`s quite familiar with RTOs) told me something to the effect of "because we`re using CMHC we DON`T have to come up with the credits portion for the downpayment." But i don`t know how he does it exactly.