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How The Program Works:
A small down payment, "Option Deposit" is required. This down payment is variable and based on the cost of the home you choose. This down payment is credited to you as a deposit, becoming part of your overall equity interest in the property.
Your Monthly payments are composed of the rent portion as well as the Monthly Option Credit payment (typically 20% of the rent payment). These monthly credits accumulate over the term of the agreement and become a part of your overall equity in the property. These credits along with your initial "Option Deposit" are credited as a deposit towards the purchase price.
EXAMPLE:
| Initial Option deposit |
$5,000 |
Minimum 3% of Purchase Price |
| Monthly Cheque # 1 |
$1275 |
Fixed Rent, taxes, insurance |
| Monthly Gheque # 2 |
$320 |
Monthly Credits |
| Total Monthly Payment |
$1595 |
|
| Lease term |
3 years |
2 to 5 years negotiable |
| Agreed to Purchase price |
$249,000 |
|
| Total down payment |
$16,520 |
$5,000 (initial option deposit) + $11,520 in monthly credits |
Balance owing: $232,480 ($249,000 less 16,520)
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