Frequently Asked Questions—FAQ
How old do I have to be to participate in your Program?
The minimum age to lease a property is 18.
What’s the advantage of working with you?
We are real estate investors with a long track record of success and integrity. We have bought a lot of buildings of all shapes and sizes, and we know what we’re doing. We have extensive experience with every aspect of buying real estate, selling properties and working with tenants. This is not a part-time program for us; it’s what we do full time. Clients and real estate professionals have come to trust us for our knowledge, experience, integrity and honesty. If we don’t think that this is a suitable program for you, we will say so.
How do I qualify for the program?
The approval process is quite simple. If you have sufficient, reliable income to support your monthly payments and you are willing to be honest about your credit history, you may very well qualify. Fill in an application and we’ll do everything we can to work with you.
Can I qualify if I’ve just moved to Canada?
Yes. Just because you arrive with no credit established does not mean you should be penalized. We will work with you to help you establish a good credit rating with the credit bureaus of Canada.
My credit is pretty bad; can I still qualify?
It depends on your individual situation. If you’re willing to be honest with us about your credit history, we will do our very best to find a way to work with you. We really are dedicated to helping people own their own home. Fill out an application with as many details as possible and we’ll see what we can do.
Does it matter if I am self-employed or work on a commission basis?
Not at all. Our qualification process is very flexible and takes into account that your income may not always be guaranteed.
What forms of down payment do you accept?
We will accept any form of certified funds (certified cheque, bank draft or money order) or a regular cheque for the initial deposit. The deposit will not be deemed to be received until the funds clear in our account.
Can I use borrowed funds for my deposit money?
Yes. Unlike some financial institutions, we believe you are free to choose where you get your down payment.
How long does the paperwork take?
Once you submit a completed application to our Mortgage Specialist, it usually only takes 4 business days to approve. We require spouses and common-law spouses to complete a separate application, as this will ultimately improve your chances of being approved. Once your application is approved and we have received your Initial Option Deposit confirming your commitment to purchase, we then match you up with an investor. As soon as we have an investor on board, you are free to start shopping for your new home!
What do I do when my lease term is up?
When your lease term expires, you are ready to buy the house! We will take care of all the paperwork for you. You simply require your own lawyer.
How do I qualify for conventional financing?
To qualify for conventional financing, you must meet the lending institutions’ requirements. These requirements can vary depending on the institution you are dealing with. Blue Ribbon Rent To Own will match you up with our Mortgage Specialists at the beginning of the term and they will ensure that you are ready to qualify as you near the end of the term. At that point, they can work with you to find the best possible mortgage to suit your needs. Our Mortgage Specialists are experts in their field and we feel confident that they will find you the best possible deal.
When can I move into the property?
You can move into the property as soon as we take possession of it. Prior to receiving the keys, you will have signed a Lease Agreement and an Option to Purchase Agreement.
Is the purchase price negotiable?
No, the purchase price is not negotiable; however, the terms and conditions of the published monthly payments are somewhat negotiable. It depends on how much down payment you have to work with. We review and approve each application on an individual basis. The purchase price at the end of your term depends on the initial purchase price and the annual rate of appreciation in your area.
Who pays for the regular maintenance of the property?
You do. You will be the direct beneficiary of any improvements you make as they will increase the value of your investment. Just as you benefit from improvements you make, so are you also responsible for your home’s maintenance. Please remember that all homes require periodic maintenance, so this should be budgeted for when considering the monthly payments.
Can I have pets?
You decide – it’s your home!
Who pays for property taxes, insurance and condo fees?
Your monthly payments already include all of these costs. We pay these bills for the duration of the Lease Agreement to ensure that they get paid in a timely manner.
Please note that all condo fee increases will be passed on to you as they occur. We can predict property tax and insurance cost increases reasonably well, but condo fees increases have proven to vary significantly from one property to the next. For that reason we ask our clients to take on the risk of increases if they choose to purchase a condo.
Can I sell the property?
Once you have exercised your Option to Purchase from us you are free to do what you wish with your home. You may sell it the next day if you like!
What happens if I am unable to make my monthly payment?
As with any lending institution, we require that you honour all obligations under the terms and conditions of our Lease to Own contract. You must pay the correct amount on time. If you fail to do so, you will be considered to be in “default” under the terms and conditions of the contract.
If you default, we reserve the right to immediately commence legal proceedings to recover and secure our interests in the property. If this happens, you may lose all equitable interest in the property, including but not limited to: initial and additional option deposits, monthly option credits, etc. We will also be entitled to recover any and all legal costs that we may incur.
In order to avoid any difficulties, we would like to ensure that you are fully aware and clearly understand our separate rights and obligations under the terms and conditions of the contract before you sign.
What happens if I choose to “walk away” from the agreement?
If at any time during the term of the agreement you choose to ‘walk away’ from your obligations, you will lose any and all equitable interest in the property and will be responsible for any and all additional expenses that may be incurred on our behalf.
Can I arrange to have a home inspection before signing the agreement?
Once you have found a house that you like, we will place an offer on it conditional on an inspection satisfactory to the buyer. You are responsible for the costs of the inspection and you must attend the inspection along with us so that we all know what condition the house is in.
Is my initial deposit refundable if I change my mind?
$1,500 plus incurred expenses (e.g. appraisal fee) are non-refundable once your application has been accepted. A great deal of work, time and people are required to move an application forward prior to purchasing your home. This non-refundable portion ensures that our costs are covered in the event that you withdraw your accepted application.
When you sign the Lease Agreement and the Option to Purchase, 95% of your initial deposit is non-refundable. These documents are signed just prior to removing conditions on the home of your choice. Should you choose to withdraw once we have removed conditions, we are left with the expense and the legal responsibility for the purchase. Your deposit acts as a protection for us and for our investors whose funds we are using to purchase your home.
Is there a warranty or guarantee on the property?
We do not provide any type of warranty or guarantee on any properties we buy for Tenant Buyers. We have the properties inspected by a certified inspector at the time we purchase them and we ask that you be present for the inspection so that you know what is uncovered if anything.
Can I choose a home in Quebec?
Not at this time.
