Nicholas Pratile, BBA
License# M20002369
416-712-5621 info@mortgageswithnicholas.com

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How Rent-to-Own Helped a Client Secure Their Dream Home

January 16, 2025 | Posted by: Nicholas Pratile

Background

Client: Sarah 
Situation:

  • Sarah, a self-employed entrepreneur in Ontario, was struggling to secure a mortgage despite having a stable income.
  • Her declared income on tax returns was insufficient to meet the requirements of A-lenders.
  • B-lenders demanded a 20% down payment, which exceeded her available funds.

Sarah had the financial means to make monthly payments, a reasonable down payment, and a strong desire to own her home. However, traditional financing options seemed out of reach.

Challenge

  • Insufficient declared income due to self-employment.
  • Limited options for mortgage approval.
  • Sarah’s family was eager to settle into a home, but time was running out to secure financing.

Solution: Rent-to-Own Program

At Mortgages with Nicholas, we evaluated Sarah’s situation and identified rent-to-own as the best path forward.

Steps Taken:

  1. Partnered with a Rent-to-Own Provider: We connected Sarah with a reputable rent-to-own program.
  2. Structured a Customized Agreement:
    • Locked in a fair purchase price for the home.
    • Arranged monthly payments, with a portion credited toward her down payment.
  3. Developed a Mortgage-Readiness Plan:
    • Guided Sarah on strategies to improve her declared income over the rental term.
    • Ensured she stayed on track to qualify for a mortgage when the purchase option became available.

Outcome

  • Sarah moved into her chosen home through the rent-to-own agreement.
  • Over the rental term, she worked on increasing her declared income and strengthening her financial profile.
  • At the end of the rent-to-own period, she successfully qualified for a mortgage with an A-lender, avoiding the high down payment requirements of B-lenders.

Key Takeaways

  • Rent-to-own is a viable option for clients facing unique challenges, such as self-employed income constraints.
  • A tailored plan and expert guidance can turn temporary obstacles into long-term success.

Could Rent-to-Own Be Your Solution?

At Mortgages with Nicholas, we specialize in helping clients like Sarah navigate challenging financial situations.

If you’re exploring rent-to-own or other mortgage solutions, contact us today.

Contact Mortgages with Nicholas to explore strategies tailored to your needs.

Let’s make your homeownership dreams a reality!

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