What is a Path2Own agreement?

A Path2Own agreement is a rental arrangement (Rent-to-Own model) that provides Tenant Buyers with a clear path and opportunity to own the property they are renting. Usually it is in a 24-48 month period.

How does a Path2Own agreement work?

In a Path2Own agreement, Tenant Buyers rent the property with the option to purchase it at the end of the rental term. Throughout the rental period, Tenants work with Path2Own to ensure they can qualify for the purchase and slowly rebuild their credit, and work towards their down payment through monthly option payments that are in addition to rent.

What are the benefits of Path2Own compared to traditional renting or buying?

Path2Own offers Tenant Buyers the chance to transition from renting to owning a home while receiving support and guidance to qualify for homeownership - and thrive in the process!

Who typically benefits from a Path2Own agreement?

Path2Own agreements are beneficial for Tenants who aspire to own a home but may face challenges in qualifying for a traditional mortgage for various reasons (such as credit issues, lack of a downpayment, employment and income history etc).

What happens if I decide not to purchase the property at the end of the rental term in a Path2Own agreement?

If the Tenant Buyer decides not to purchase the property, they can simply move out at the end of the rental term with no obligation to buy, and your option payments returned minus fees for the transition out and home sale. However, the initial down payment will be forfeited.

Is there a standard duration for Path2Own contracts?

The duration of Path2Own contracts can vary but typically ranges from a 2-4 years to give Tenants time to prepare for homeownership.

How does rent payment apply towards the purchase price of the home in a Path2Own agreement?

The Tenant Buyer will pay an option-credit that slowly builds their down payment, which will be credited to them at the end of the rental term.

Who is responsible for maintenance and repairs during the rental period in a Path2Own agreement?

In our Path2Own agreement, the Tenant Buyer gradually transitions into the role of homeowner and assumes responsibility for maintenance tasks.

Are there any upfront costs or fees associated with entering into a Path2Own agreement?

The only fee that is required prior to purchasing the property will be our agreed upon down payment which is typically around 3% of the purchase price.

What happens if I miss a rent payment in a Path2Own agreement?

Missing a rent payment in a Path2Own agreement may have consequences outlined in the agreement, such as termination of the option to purchase.

Can I make improvements to the property during the rental period in a Path2Own agreement?

Tenants may be permitted to make improvements to the property with the Landlord's approval, depending on the terms of the Path2Own agreement.

Can the Landlord/Seller sell the property to someone else during the rental period in a Path2Own agreement?

The Landlord cannot sell the property to someone else without the express permission of the current Tenant Buyer during the rental period in a Path2Own agreement, as it would interfere with the Tenant's option to purchase.

What happens if the property's value changes during the rental period in a Path2Own agreement?

In real estate, there are inherent risks. However, in our Path2Own agreement, we establish the purchase price upfront with ample opportunity for appreciation, benefiting the Tenant Buyer. If the property's value exceeds expectations, it's a win for the Tenant Buyer. In the event of a price drop below the agreed-upon purchase price, we may consider extending our term to await market recovery or voiding the option agreement, providing a refund on option payments. Our goal is to do everything we can to set up a Tenant Buyer for financial success.

Is the purchase price of the property negotiable in a Path2Own agreement?

The purchase price of the property may be negotiable, depending on the terms of the Path2Own agreement and market conditions.

Are Path2Own agreements regulated by any specific laws or regulations?

Path2Own agreements are subject to Canadian laws and regulations, governing rental agreements, and real estate transactions.

Can I terminate a Path2Own agreement early if I decide not to proceed with the purchase?

At Path2Own, we engage extensively with the Tenant Buyer before finalizing any agreement. This thorough process allows both parties to conduct due diligence, ensuring suitability and minimizing future complications. In the unfortunate event of cancellation, yes, it is possible, but it carries inherent risks, such as the potential loss of the initial down payment.

What happens if there are issues with the property title during the rental period in a Path2Own agreement?

There should be no concerns regarding property titles, as either Path2Own or one of our investors will be listed on the title during the rental agreement. Upon the completion of our option contract, the title will be transferred to the Tenant Buyer.

Do I need to secure financing to purchase the property at the end of the rental term in a Path2Own agreement?

At the conclusion of our agreement, Tenant Buyers will need to secure financing. From day one, we collaborate closely with the Tenant Buyer and Mortgage Broker to ensure they meet the criteria for a home loan at the end of our term, thereby minimizing concerns or complications.

Are Path2Own agreements suitable for all types of properties, or are there limitations?

Path2Own agreements may be suitable for various types of properties, but limitations may apply depending on the specific property and market conditions.

How do I know if a Path2Own agreement is the right option for me?

Determining if a Path2Own agreement is the right option involves considering factors such as your financial situation, homeownership goals, and ability to meet the requirements of the agreement. Working closely with Path2Own can help clarify your options and make an informed decision.

Do I need to be Military to Qualify?

We aim to serve Canadian Forces members and their family; However, you don't need to be apart of the Canadian Forces to qualify for our program. We will consider anyone that is a good fit.