Understanding Your Rent-to-Own Program | Rent To Home Now
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Welcome
Understanding Your Rent-to-Own Program
This course is a simple walkthrough of how the Rent To Home Now program works. By the end, you will feel confident about the process, what to expect, and how it all leads to owning your home.
5
Modules
25
Minutes
4
Quizzes
What You Will Learn
Module 1: What rent to own is and how it works
Module 2: Your journey from application to move-in day
Module 3: The documents you will sign and what they mean in plain language
Module 4: What is expected of you during the lease
Module 5: How you go from tenant to homeowner
R2HN Tip
This course pairs with the Credit Building Course and the Budgeting for Homeownership Course. Together they give you a complete picture of how to succeed in the R2HN program. If you have questions at any point, reach out to our team.
Module 1
What Is Rent to Own?
⏲ About 5 minutes
Rent to own sits right between renting and buying. It gives you time to get mortgage-ready while you are already living in your future home.
How It Works
With R2HN, you sign two agreements at the same time:
A lease that makes you a tenant in the home. You pay rent, take care of the property, and live there like it is yours.
An Option to Purchase that locks in your right to buy the home at a set price. No one else can buy it while your option is active.
The lease covers your day-to-day life. The option secures your right to buy when you are ready.
How Is It Different from Renting?
With regular renting, your payment covers housing and that is it. With R2HN, you also pay a separate Option Consideration fee. This fee adds up over time and is applied toward your future down payment when you buy.
Until the purchase actually happens, Option Consideration is a fee, not a down payment and not equity. It only becomes your down payment at closing.
Good to Know
During the lease, you are a tenant with the right to buy, not the owner yet. Ownership transfers when you get your mortgage and close the purchase.
How Is It Different from Buying?
Normally you need to qualify for a mortgage before you can buy. If your credit, savings, or income are not quite there yet, rent to own gives you time. You move into the home now and use the lease period (usually 2 to 4 years) to build credit, save, and get mortgage-ready with R2HN and a mortgage specialist helping you along the way.
Who Is It For?
R2HN works well for people who:
Want to own a home but are not quite mortgage-ready today
Are rebuilding credit after a consumer proposal, bankruptcy, or other event
Are newer to Canada and still building credit and employment history
Are self-employed and need time to document income
The Bottom Line
Rent to own is not a shortcut. It takes real commitment. But you will not be doing it alone. R2HN provides the plan, the coaching, and the support every step of the way.
Quick Check
During a rent-to-own lease, are you the legal owner of the home?
That is right. During the lease you are a tenant with the right to buy. Ownership only happens when you close the purchase.
Not quite. During the lease, you are a tenant with an option to buy. Ownership transfers at closing, not before. This is one of the most important things to understand.
Module 2
Your R2HN Journey
⏲ About 6 minutes
The R2HN program has a clear path from start to finish. Here is what each phase looks like so there are no surprises along the way.
Phase 1: Qualification
Getting Approved
Application and Initial Review
You fill out an application and R2HN takes a look at your overall financial picture (income, debts, credit, and goals) to see if the program is a good fit.
Appointment with R2HN
You meet with R2HN to go over the program, ask questions, and make sure it feels right. This is when the Stage 1 commitment fee is collected.
Tenant Screening and Mortgage Pre-Qualification
R2HN runs a tenant screening, and you are connected with a mortgage specialist who checks where you are at today and builds a plan to get you mortgage-ready.
Full Approval and Commitment
Once approved, you pay the Stage 2 program fee and you are officially in. Time to find your home.
Phase 2: Finding and Securing Your Home
House Shopping to Move-In
Connect with a Realtor
R2HN connects you with a Realtor who knows the rent-to-own model. You start house shopping together.
House Chosen and Initial Option Consideration (IOC)
Once you find a home, you pay the Initial Option Consideration (IOC). This is your first payment toward the Option to Purchase.
Offer, Conditions, and Home Inspection
An offer is made on the property and a home inspection is completed. You sign off confirming you are happy with the home's condition.
Sign Your Agreements
You sign your lease, the Option to Purchase, and a few other key documents. We cover all of these in Module 3.
Orientation and Move-In
You do a walk-through of the home, go over the Welcome Home Package, set up your utilities and insurance, and then you get the keys.
Phase 3: Your Program Period
Living in Your Future Home
First Month
Get settled in and start your payment routine. Your rent payments are reported to credit bureaus, which helps build your credit.
Ongoing: Years 1 through 3+
Pay your rent and option payments on time each month. Check in with your mortgage specialist twice a year. Follow your action plan and take care of the home. This is where the real progress happens.
90 Days Before Option Expiry
R2HN checks in with you and your mortgage specialist to make sure everything is on track for your purchase.
Exercise Your Option and Close
You let the property owner know you are ready to buy. Your Option Consideration is applied toward your down payment, you close with a lawyer, and the home is officially yours.
R2HN Tip
This is not a waiting period. It is a working period. Every month you are building credit, saving, and following your plan. The families who do best are the ones who stay active and engaged the whole way through.
Quick Check
When during the program do you sign the Option to Purchase Agreement?
That is right. You sign the Option to Purchase after the home is chosen and before you move in. It locks in your right to buy.
Not quite. You sign it after the home is selected and before you move in. It is part of the paperwork you complete before getting the keys.
Module 3
Your Key Documents
⏲ About 7 minutes
There are a few important documents you will sign during the program. This module breaks each one down in plain language so nothing feels confusing when the time comes.
The Documents You Will Sign
Tap each one below to see what it covers.
Program Service Agreement (PSA)
▼
What it is: Your agreement with R2HN for program services: coaching, education, and coordination. It is separate from the real estate side of things.
Key things to know:
There are two fees: a Stage 1 commitment fee and a Stage 2 program fee.
If you meet all your obligations and complete the purchase, the Stage 2 fee gets credited toward your Option Consideration, so it works in your favour.
Residential Tenancy Agreement (Lease)
▼
What it is: Your lease. It covers the rules of living in the home during the program.
Key things to know:
Fixed term: The lease has a set start and end date.
Discounted rent: You get a lower rent rate as long as you pay on time and complete your check-ins. Miss either one and you owe the full rate that month.
Maintenance: You take care of the home like a homeowner would: yard, appliances, seasonal upkeep, and repairs.
Utilities and insurance: All utilities and tenant insurance are your responsibility from day one.
Inspections: R2HN does quarterly check-ups on the property with 24 hours notice.
Good to Know
Staying on top of your lease is directly tied to your option to buy. Think of it as more than just a rental. It is part of your path to homeownership.
Option to Purchase Agreement
▼
What it is: This is the heart of the arrangement. It gives you the exclusive right to buy the home at a set price within a set time frame.
Key terms in plain language:
Option Period: The window of time you have to exercise your option and buy. It has a start and end date.
Purchase Price: The agreed price for the home, set at the beginning. It reflects the expected future value, so it will be higher than today's market price.
IOC (Initial Option Consideration): A lump sum paid up front when the home is selected.
MOC (Monthly Option Consideration): A fee paid each month on top of rent. Each payment adds up toward your future down payment.
Lump Sums: You can make extra payments toward your Option Fee any time you like.
Option Fee: The total of your IOC + all MOC payments + any lump sums. When you buy, the full amount is credited toward the purchase price as your down payment.
What If You Do Not Buy?
If the purchase does not go through, 90% of your Option Fee is retained and 10% is returned to you. That is a big number, and it is exactly why the whole program is set up to help you succeed.
Can I Get an Extension?
There is no automatic extension, but if you have done everything right and just need a little more time for something minor (like an appraisal), the property owner may offer one. It is not guaranteed, but it is possible.
Welcome Home Package
▼
What it is: Your move-in guide. It covers all the practical details of living in the home and staying on track with the program.
What it includes:
Your payment dates and amounts (rent and option)
Consent to have your rent payments reported to credit bureaus
Utility and insurance requirements
Home care basics (maintenance, inspections, seasonal tasks)
Your check-in schedule with your mortgage specialist
How and when to reach R2HN if you need anything
Certificate of Independent Legal Advice
▼
What it is: A short document confirming you have had the chance to get legal advice before signing your agreements.
In simple terms: It confirms you understand what you are signing, that you had the opportunity to have a lawyer review it, and that you are signing by choice.
R2HN Tip
We strongly encourage you to have a lawyer review your documents. It is for your own protection and peace of mind, and it is a normal part of the process.
Acceptance of Home Inspection
▼
What it is: A short sign-off confirming you have seen the home inspection report and are happy with the home's condition before you move in.
In simple terms: You are saying "I have seen the inspection, I know the condition of the home, and I am good to go." From there, maintenance and upkeep are your responsibility.
Quick Check
If you exercise your option and complete the purchase, what happens to your total Option Fee (IOC + MOC + lump sums)?
That is right. Everything you have paid toward your Option Fee (IOC, all MOC payments, and any lump sums) gets credited toward the purchase price as your down payment.
Not quite. The full Option Fee (IOC + all MOC + any lump sums) is credited toward the purchase price when you buy. Nothing gets left behind.
Module 4
Your Responsibilities
⏲ About 5 minutes
Here is what is expected of you during the lease. None of it is complicated. It just takes consistency.
Payments
You have two separate monthly payments during your lease:
MONTHLY RENT
Lease Payment
Paid on your rent due date each month. You receive a discounted rate when paid on time and check-ins are complete. Late or missed check-in = full rent owed.
OPTION CONSIDERATION
MOC Payment
A separate fee paid monthly. Accumulates toward your future down payment. Applied at closing when you exercise your option to purchase.
Stay on Top of Payments
Late or missed payments can affect your option and your rent discount. Set reminders, automate if you can, and always make sure funds are ready before due dates.
Home Maintenance
You take care of the home like it is yours, because one day it will be. This includes:
Seasonal stuff: Change furnace filters, drain hoses before winter, keep the heat on
Yard: Mow the lawn, shovel snow
Repairs: Handle basic fixes (drains, light bulbs, minor damage)
Report anything big: If something breaks or gets damaged, let R2HN know right away
R2HN Tip
Think of maintenance as practice for homeownership. When you close on your purchase, these responsibilities do not change. Building good habits now means fewer surprises later.
Check-Ins and Inspections
Two types of regular touchpoints keep you on track:
Property Inspections (Every 3 Months)
R2HN does a quick property check about every three months with 24 hours notice. These are just to make sure everything is in good shape.
Mortgage Specialist Check-Ins (Twice a Year)
You meet with your mortgage specialist about every six months to see how your credit, savings, and action plan are coming along.
Do Not Skip Check-Ins
Completing your check-ins is one of the conditions for keeping your discounted rent rate. Miss one and you owe the full amount that month. Just stay on schedule and you will be fine.
Insurance, Utilities, and Rent Reporting
Tenant insurance is required from day one. All utilities need to be in your name before you move in.
With your consent, R2HN also reports your rent payments to credit bureaus. Paying on time helps build your credit, which is one of the key things that gets you mortgage-ready.
Quick Check
What two conditions must be met to receive the discounted rent rate?
That is right. Pay on time and complete your check-ins. Do both and you keep the lower rate.
Close! The two conditions are: pay rent on time and complete your check-ins. Both need to happen to keep the discounted rate.
Module 5
The Path to Purchasing Your Home
⏲ About 5 minutes
This is what it has all been leading to: exercising your option and becoming a homeowner. Here is how the finish line works.
When You Are Ready to Buy
Here is what happens:
Let the property owner know in writing that you are exercising your option.
Pay a deposit to the owner's lawyer.
Get your mortgage. Your mortgage specialist has been preparing you for this moment.
Close the purchase. Your lawyer handles the paperwork. Your entire Option Fee is credited toward the purchase price as your down payment.
You are the homeowner. The title is in your name. The home is yours.
How Your Down Payment Comes Together
Down Payment Breakdown
Here is how the pieces fit together at closing:
IOC
Initial Payment
Paid when your home was selected. Credited in full at closing.
MOC PAYMENTS
Monthly Payments
Every monthly option payment you made during the lease. Credited in full at closing.
LUMP SUMS
Extra Payments
Any additional payments you made toward the Option Fee. Credited in full at closing.
PSA CREDIT
Service Fee Credit
If all PSA conditions are met, your Stage 2 program fee is credited toward Option Consideration.
IOC + All MOC Payments + Lump Sums + PSA Credit = Your Down Payment at Closing
What If Things Do Not Work Out?
The whole program is built to help you succeed. But it is fair to understand what happens if the purchase does not go through.
If You Do Not Buy
If the purchase does not happen, 90% of your total Option Fee is kept by the property owner and 10% is returned to you. That is a real number, which is exactly why R2HN puts so much support behind you from day one.
This is why the little things matter: paying on time, showing up to check-ins, following your plan, and staying in touch with R2HN. Every step moves you closer to a successful purchase.
You Have a Team Behind You
The check-ins, the action plan, the mortgage specialist, the coaching. All of it exists to make sure you are ready when the time comes. Stay engaged and trust the process.
Your R2HN Program Checklist
✓
I understand the model: I am a tenant with a right to buy, not the owner until closing.
✓
I know my documents: I understand my lease, Option to Purchase, and the other agreements.
✓
Pay on time, every time: Both rent and Option Consideration, by the due date each month.
✓
Show up for check-ins: Mortgage specialist visits and any other scheduled check-ins.
✓
Follow my action plan: Credit building, debt paydown, and anything else my team recommends.
✓
Take care of the home: Yard work, seasonal maintenance, and basic repairs.
✓
Keep my insurance active: Tenant insurance from day one, always current.
✓
Save for closing costs: Legal fees, title insurance, and moving costs.
✓
Stay in touch: Ask questions, report issues early, and keep the lines open with R2HN.
Course Complete!
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Rent To Home Now
Certificate of Completion
Understanding Your Rent-to-Own Program
Successfully completed all 5 modules
Your Name
has completed the Rent To Home Now course on the lease option program, including how the model works, the program journey, key documents, tenant-buyer responsibilities, and the path to homeownership.
