How are Lease-to-Own monthly payments calculated?
When we obtain these properties, they have existing mortgages in place. The Lease-to-Own monthly payment is based on the mortgage cost (principal, interest and insurance) plus the property tax and strata fees (in the case of a townhouse or condo). We compare the mortgage cost structure and market economic rent for the property. At times the Lease-to-Own monthly payment can be lower than a comparable market rent, a subsidy to you. This occurs because the mortgage registered on title could be much less than the value of the home. However, as a general rule of thumb, Lease-to-Own monthly payments are quite similar to the market economic rent for the property available. Any payments over the “carrying costs” or Lease-to-Own go directly to your down payment fund. If you decide, you can also make additional monthly payments, so you can increase your down payment over time.
