The Pros and Cons of Rent to Own: What Every Future Homeowner Should Know

Rent to Own is gaining attention across Canada as a strategic path to homeownership—especially for individuals and families who have stable income but aren’t quite mortgage-ready. While it’s not for everyone, Rent to Own can offer a powerful alternative to the renting treadmill, helping aspiring buyers move into the home they love today while working toward owning it tomorrow.

The Benefits of Rent to Own

One of the biggest advantages of our Rent to Own program is the ability to address financial hurdles—like bruised credit, limited down payment or lack of closing costs—without putting your dream of homeownership on hold.

Rather than waiting years to qualify for a traditional mortgage, you can move into your future home now, while actively improving your credit and saving more each month toward a larger down payment. In our Rent to Own agreement, a portion of your monthly payment is credited toward your future purchase—helping you build equity from the moment you move in and all you have to do is pay on time.  That’s right, we give you back a portion of your payment to put towards building your down payment just for making on-time payments.

We use the stress test and although many will think that it limits them, we have found that it has been a cornerstone of our success since it means that affordability is followed from day 1, allowing the people who enter our program, the opportunity to exit into a bank mortgage based on the banks stress test at the end of the program.

You also get the emotional and practical benefit of living in the home before you buy it. You can settle into the neighbourhood, decorate to your liking (with landlord approval), and make sure the home truly fits your long-term needs. It’s like a test drive—only with a clear destination: ownership.

The Risks and Considerations

Of course, Rent to Own isn’t without its risks. If you decide not to purchase the home at the end of the lease term—or are unable to secure a mortgage—you may lose the down payment credits you’ve accumulated.  We recommend to make sure you are absolutely sure you are ready for the commitment before you lock yourself into a home.  Yes, it seems like a great idea to just get out of renting but be sure to pick the right house for your family, you have to love where you live, and be sure you have the right mindset, that of someone who wants to own their own home.

It’s also important to know that, during the rental period, you’re not yet the official homeowner. That means there may be restrictions on renovations or structural changes. Plus, if the housing market dips, you might still be committed to the original agreed-upon purchase price.

Another key point: Rent to Own in Canada typically requires buyers to qualify for a mortgage at the end of the term. If financial challenges remain unresolved, that could affect your ability to complete the purchase.  You need to be prepared to do the work necessary to improve your financial and credit challenges while in the program.

Also, without a professional home inspection upfront, you could encounter unexpected repair issues down the line—so always ensure your Rent to Own contract includes one.

What This Means for Canadian Homebuyers

While Rent to Own homes in Canada are less common than traditional rentals or outright purchases, they can be a game-changer for buyers who need time to strengthen their mortgage application. In hot real estate markets, however, some landlords are hesitant to lock in today’s prices for a sale that will close in a few years.

That’s why working with a reputable Rent to Own provider—and understanding your contract fully—is essential. With the right structure and support, Rent to Own can help you stop renting, start building equity, and finally secure the keys to your future.  Want to do some more research to see if now is a good time for you to consider Rent to Own?