This presentation goes through some of the many benefits that Canadian Renters could have by choosing to use Rent to Own to Purchase their home. Things such as having your rent go towards the purchase, Repairing damaged credit, Not having the home price climb out of reach.

1. How Canadian Renters
Can Benefit from Rent
to Own Options
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2. Evolution of Renters
to Homeowners,
the Streetwise Way.
About Us
In today’s market, as housing prices continue to rise and lending criteria continues
to tighten, Streetwise Homes sees a need to recreate the traditional solutions avail-able
to would-be buyers. The team of professionals at Streetwise Homes come to-gether
from diverse backgrounds in the real estate industry. Through innovative
thinking they are creating solutions for clients who would otherwise have had no
options in buying and selling real estate.
Due to stricter lending criteria, many potential buyers are finding it impossible to
secure financing to buy a home. Streetwise Homes works with these buyers to
find, negotiate, and finance rent to own properties. The flexibility of their results
driven solutions means that more buyers can get into the home of their dreams
today while securing their stake in it for the future.
Streetwise Homes is building a strong reputation as a leader in creative real estate
solutions by consistently producing fantastic results. Motivated buyers look to
Streetwise Homes to professionally assist them in difficult real estate transactions.
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3. Every person who invests in well-selected real estate in a
growing section of a prosperous community adopts the
surest and safest method of becoming independent, for
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real estate is the basis of wealth.
~Theodore Roosevelt
A Straightforward, Mathematical Approach
You can live in the home of your dreams to-day;
the home that you will eventually own.
Stop wasting money on monthly rent pay-ments
that could and should be applied to
your future home. Many renters do not re-alize
they have ownership options available
to them, even if they will not qualify for a
mortgage today. Rent to own is a real solu-tion
to renters whose ultimate goal is home
ownership. And, financially, leasing to own
makes much more sense than spending all
your money on rent. Consider the following
mathematical approach that explains the ad-vantages
of rent to own options for typical
renters in Canada.
How much is Your Rental Really Costing You?
If you are like thousands of average Canadian
renters, then you are probably paying from
$1,150 to $1,175 in rent every month. That’s
right, Canadian renters pay, on average, $1,175
in rent per month, or $14,097 per year to rent
homes in which they have absolutely no equity
or even secure long term possession.
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Do the Math
Reasonably Priced Calgary Rentals
2 - 3 bedroom
apartment
2 - 3 bedroom
median
apartment
2 - 3 bedroom
house
2 - 3 bedroom
median house
Average Rent
per Month
Average Rent
per Year
From $1,096 to
$1,150 $1,123 From $1,105 to
$1,198 $1,152 $1,175 $14,097
“Rental Market Report, Calgary CMA.” www.crra.ca. Canada Mortgage and Housing Corporation, n.d. Web.
<www.crra.ca/wp-content/uploads/2012/12/2012-Fall-Rental-Market-Report-2012.pdf>.

4. “
Real estate cannot be lost or stolen,
nor can it be carried away. Purchased
with common sense, paid for in full,
and managed with reasonable care,
it is about the safest investment
in the world.
~Franklin D. Roosevelt
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Many who have not done the math before may
be shocked to find that they are paying over
$14,000 per year toward rent. Your mind might
be racing at this point, dreaming up all the things
you could buy, if only you did not have to pay
rent. Your first consideration may be how much
you could have made by saving that money and
investing it, netting returns on that money every
year. Of course, you do have to pay rent because
you need to have a place to live. But, have you
considered a way to make your rent money work
for you?
Before we get into that, it is important for you
to understand that the $14,097 you are prob-ably
paying in rent per year is not the total cost
of renting. You should also figure in the amount
you will have paid in a security deposit; typically
two times your monthly rent.
You may argue that you will get all or a portion
of your security deposit back at the end of your
lease period. Either way, those funds are not
making you any money while sitting in your
landlord’s bank account. On the other hand, if
you owned the home you lived in, you could put
that $2,350 into an interest bearing account and
earn money on it every single month.
Why You May Not Qualify for a
Mortgage Loan Today
There are several factors that lenders and land-lords
use to determine the eligibility of an ap-plicant
for a mortgage loan.
Income
The first factor you will likely need to meet
when buying a home is your income. You will
need to show that you have a steady and regu-lar
income. If you did not, then a landlord would
not consider you over other potential tenants.
Do the Math
Cost of Renting
Payment Type Calculations Totals
Yearly Rent Monthly Rent ($1,175) x 12 $14,097
Security Deposit Monthly Rent x 2 $2,350
Annual Cost of Renting Yearly Rent + Security Deposit $16,447

5. Buying an Average Home in Calgary
Do the Math
Purchase Price Down Payment Mortgage Amount Closing Costs Total Cash
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Credit
In qualifying for a mortgage, your credit score
will typically need to be higher than is expected
of a landlord. A landlord will run a credit check
to have some idea of your tendency to pay your
regular bills. They will want to know that, in gen-eral,
they are taking a good risk in assuming that
you will pay your rent monthly. If you do not pay
your rent, the landlord is inconvenienced and
may lose money for a period of several weeks
but, will eventually find a new tenant to pay
rent. Banks who offer mortgage loans are tak-ing
a much larger risk. They need to know that
you have the ability and willingness to pay your
mortgage over a period of decades.
Down Payment
The Canadian Mortgage and Housing Corpora-tion
will offer mortgages worth up to 95% of
the value of the home. This means that you
will need to come up with 5% for a down pay-ment.
That is, for an average, $200,000, home
you will need to put down $10,000. Most rent-ers
have been paying too much in rent to be
able to save up that kind of money.
Closing Costs
Many would-be home buyers forget to factor in
closing costs when calculating their home sav-ings
goal. Closing costs typically run at 5% of
the total amount of the mortgage. For the typi-cal
home referenced above at $200,000, closing
costs would amount to $7,125. You would need
a total of $19,625 in cash in order to purchase
an average home.
So, you need about $19,500 to purchase a
home. Where will you possibly get that amount
of money? Well, you are wasting almost that
amount on your annual rent.
How You Will be Able to Qualify for
a Mortgage Eventually
The price tag on a home may seem overwhelm-ing
but, you will eventually be able to qualify for
a mortgage. You will simply need to save almost
$20,000 and repair any bad credit you may have
incurred. This may take several years but, with
patience you will then be able to move into the
home you have been wishing for. So, make a
budget and start saving. And, while you’re at it,
you should come up with a way to build up your
credit report. Hopefully, you will meet your goal
and someday, years from now you will be able to
buy a house. Or, you could…
Don’t stretch yourself too much with a mortgage.
Buy within your means.. it’s not worth the sleepless nights.
~Sarah Beeny
Needed
Appraisal Value Purchase Price x 5% Purchase Price
– Down Payment
Mortgage Amount
x 5%
Down Payment
+ Closing Costs
$200,000 $10,000 $190,000 $9,500 $19,500

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As An Enlightened Streetwise Renter
You Can Move Into the Home You Will
Eventually Own Today
Yes, you can move into the home that will even-tually
be yours right now. This move will not re-quire
the large down payment or stellar credit
needed to purchase a home. You can do this
by engaging in an expertly crafted rent to own
agreement.
How Rent to Own Works
A rent to own agreement is made up of two ba-sic
components; the lease agreement and the
purchase agreement. Basically, you will agree
to rent a home for a period of a number of years
at the conclusion of which you will purchase
the home. The purchase price you will agree
to before entering an agreement will be based
on the home’s current market value and will not
change during the years until you complete the
purchase.
Why the Landlord Will Agree
You may be wondering why a landlord would
agree to this situation when they could just rent
out their property on typical terms. The answer
is two-fold – security and income. One of the
biggest hassles of being a landlord is finding ten-ants.
When agreeing to a rent to own option a
landlord can feel secure in the fact that this will
be the last time they will have to rent their prop-erty.
They will further understand that you have
an increased interest in paying your monthly
rent because they know that your ultimate goal
is to purchase the house. Of course, income is a
consideration, too.
Why the Bank Will Qualify You at the
End of Your Lease Period
You will save for the down payment of your
home by paying your security deposit and
monthly rent. Whereas in a typical rental
your security deposit and monthly rent are
only benefiting the landlord; in a lease to own
agreement your payments are benefiting you.
During the pre-purchase period you will also
have time to repair any blemishes on your
credit history. A Credit Repair Specialist can as-sist
you in formulating a plan to repay any debt
you have in order to increase your credit score.
The specialist will assess your current situation
and the lending criteria of the bank who will
finance your mortgage to ensure that you will
be creditworthy at the end of your lease. The
bank will also take into consideration the in-crease
in value of the home. Remember that
you set the purchase price at current market
value so, when you apply for a mortgage on
the home, the purchase price should be less
than its current value resulting in increased
equity.
How It All Adds Up
We will use the average rental cost of $1,175
per month to illustrate how it all adds up. Im-agine
you are looking for a lease to own deal
and see a home advertised for rent at $1,175
a month. You approach the landlord and ex-press
your interest in a rent to own option. Of

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course, you detail the benefits to the landlord,
listed above. If you feel uncomfortable with
this phase of the process, now might be a time
to contact a professional lease to own service
that will work for you to negotiate with the
landlord. In your negotiations, you will first
suggest a purchase price which you would
be willing to pay for the home. Next, you will
talk about the monthly rent you are comfort-able
paying. A typical negotiation could re-sult
in the monthly rental amount dropping
to $1050 per month. You will then determine
the amount you will pay monthly toward your
future down payment, called the rent credit
amount, and an optional deposit which will
also be applied to your down payment. In this
scenario you will agree to pay a rent credit of
$350 per month and a deposit of $7,500. Fi-nally,
you will set a term for your lease. In this
example your term will be three years.
After your three year lease term you will have
$20,100 to put toward the purchase of your
home; the home you have been living in for
three years. The very dream home that you
thought you would never be able to afford.
The Support You Need to Spur Your Move
Buying a home can be confusing and enter-ing
into a rent to own agreement can com-pound
that confusion. Hopefully, you now have
enough information to understand why lease to
own is, in most cases, a better option than rent-ing.
Of course, there are rare exceptions to this
rule, such as when you are renting because you
only intend to stay in an area short-term. If you
know that rent to own is the right option for you
but, are still feeling unsure of how to go about
finding a lease to own situation and wondering
how you will navigate through the paperwork,
then contact us at Streetwise Homes today. We
will work with you to find your dream home and
negotiate a lease to own agreement. Further, we
will design a plan specifically for you to ensure
that you will qualify for a mortgage at the end
of your lease term. We will explain in detail ex-actly
how much money you will have saved for
a down payment and closing costs and will cre-ate
an action plan for building your credit. At
Streetwise Homes we believe in being accessible
to our clients throughout the rent to own trans-action.
This means that we will be there for you
each step of the way, helping you stay on track
and guaranteeing that you will own your home
in the end. We are powered by your success.
It is time to stop renting and start buying. Don’t
waste another rent payment when you could be
building equity in your dream home.
Do the Math
Proposed Lease-to-Own Three Year Option Term
Payments Calculations Totals
Monthly Rent - $1,050 Rent x 12 Yearly Rent - $12,600
Monthly Rent Credit - $350 Rent Credit x 12 Yearly Rent Credit - $4,200
Three Year Rent Credit Yearly Rent Credit x 3 Accumulated Rent Credit - $12,600
Option Deposit $7,500 Option Deposit - $7,500
Total Accumulated Rent Credit
+ Option Deposit Down Payment on Hand - $20,100

8. Real estate is an imperishable asset, ever increasing in value. It is the most
solid security that human ingenuity has devised. It is the basis of
all security and about the only indestructible security.
~Russell Sage
Evolution of Renters to Homeowners, the Streetwise Way.
www.streetwisehomes.ca
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