Depending on where you are at, rent to own may be a great option for you!
Entering into a rent to own agreement allows you to move into the home that you will ultimately purchase, even if it isn’t the best time for you financially, such as if you don’t have a full down payment, don’t qualify for a mortgage, are recently divorced, or are new to Canada.
Here's how it works.
The renter/buyer signs a contract with the landlord/seller to rent the unit.
At the same time the two parties sign a contract to sell the unit from the landlord/seller to the renter/buyer for some time in the future, generally between 1 and 3 years.
There is a small amount of money down for a damage deposit and as a down payment. This amount can be negotiated.
The renter/buyer then rents the unit as they normally would in any situation, except they pay a bit more rent every month.
The extra amount of rent, to be negotiated, goes into a fund with the initial down payment.
After a certain period of time, usually 1-3 years, the amount of money that has been set aside is large enough that the renter/buyer can use that for a down payment on the property.
They can the get a mortgage and own the property outright.
It is not always possible for people to afford a home of their own because they may not have great credit or they don't have enough saved up for a down payment. The real advantage to the renter/buyer is that they can start saving for a down payment while living in the unit that will be theirs in the long term while at the same time building their credit rating.