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How Does Rent-to-Own Work in Alberta? [Myth-Busting & Red Flags]

Thu, 09 Apr 2026 01:50:10 GMT

What Most People Get Wrong About Rent-to-Own in Alberta

If you’ve been scrolling through real estate listings in Calgary or Edmonton lately, you know the vibe. While we still enjoy some of the best affordability in Canada, the barrier to entry is still there. Tighter mortgage qualification rules mean that even strong earners are finding it hard to get approved.

This has pushed creative options like Rent-to-Own (RTO) into the spotlight.

You've likely run into two types of information. Rent-to-own is either overly optimistic "sales speak" or horror stories from poorly structured contracts or less-than-ideal providers.

And here's what people need to understand first and foremost: Rent-to-own isn't a magic wand for homeownership. It’s a structured, temporary 2-4 agreement that is designed to get you mortgage-ready.

At Chilkoot Homes, because we only take on a handful of clients each year, we can afford to be picky. We're not here to "sell" you. Our job is to be transparent with our clients about how rent-to-own works in Alberta so you can make the best decision for your family. We’d rather tell you " no" now so that we are not setting you up to fail.

So, let’s clear the air by busting the most common misconceptions and then giving you a red flag checklist on what to look out for so you can avoid the bad actors.

Myth 1: "Rent-to-Own is a Down Payment Assistance Program"

This is an important one to clear up. Rent-to-own is not a down payment assistance program or a zero-down solution. While there are non-profit ( Metis Capital Dousing Down Payment Assistance Program ) and private solutions out there for buyers looking for down payment assistance, they come with their own sets of rules, and often still require you to be mortgage qualification ready.

On the flip side, rent-to-own offers a pathway to people who are not mortgage ready due to credit challenges, debt-to-income misalignment, or any other number of life circumstances.

Rent-to-own is a bridge solution that helps you to accumulate your future down payment over time at a level required so you can be mortgage ready. Clients start with an initial Option Deposit of 4% of the price of the home, or $17,500 (your skin in the game), then they pay rent plus an additional Option Credit monthly . By the end of your 2-to-4-year term, those credits have built up to 10% needed to qualify for your own mortgage. (At Chilkoot Homes, we always track clients toward a 10% minimum accumulated future down payment)

If a company tells you that you can start with $0 down, we would highly recommend you read the fine print in the agreements.

Myth 2: "I can Rent-to-Own a Farm, Acreage, or Mobile Home"

We get this request a lot because Albertans love their space and the outdoors. However, the boring truth of banking and mortgages makes this much more difficult and risky for anyone considering getting into a rent-to-own program.

Lender guidelines for farms, acreages, and even mobile homes are vastly different from standard residential homes. They require larger down payments and have stricter underwriting. At Chilkoot Homes, we stick to freehold homes because they are the safest path to you getting a "yes" from the bank at the end of your RTO term.

"Freehold" means you own the land, which is different from condo or strata, which is a lease hold. We often tell our clients, owning the land is the most advantageous for any homeowner because land is a better store of value, which is oftentime why you see big fluctuations in condominimum pricing.

Freehold Properties come in many forms that our clients can choose from, including single-family homes, semi-detached (duplexes), pre-fabricated/modular homes, or row houses.

Myth 3: "It’s Cheaper than Regular Renting"

This is one we like to nip in the bud right off the bat. Just like owning a home is generally more expensive than renting, so to is rent-to-own. Why is owning more expensive than renting? It's because there are more expenses you are responsible for including, mortgage, taxes, insurance, maintenance and repairs.

And with RTO, you are paying two things:

The "Rent" Part: Your rent must cover, at minimum, our costs (mortgage principal and interest, taxes, insurance, and bank fees).
The "To-Own" Part: Your monthly and/or annual contribution toward your future down payment.

A reputable provider will keep these payments entirely separate. You should receive a transparent payment schedule that lays out exactly what you are paying toward rent and exactly what you are contributing to your future down payment.

At the end of the day, rent-to-own is preparing you to be a homeowner. It’s a bridge solution to homeownership that provides structured support for you to get to a 10% minimum down payment goal.

Myth 4: "Rent-to-Own is a Scam"

You’ll hear this a lot on Reddit or around the water cooler.

But, saying "rent-to-own is a scam" is like saying "Mortgages are a scam" because you pay more toward interest than principal in the first 5-10 years and the bank can foreclose on the property if you don't pay your mortgage. The reality is that both are financial tools designed to provide a solution. For some people, mortgages are not a vaible solution at this time in their life. This is where rent-to-own plays a role.

Does the industry have bad actors? Yes. Just like there are loan sharks in the mortgage lending world, or shady car dealerships, there are equity strippers in RTO. These are companies that set you up to fail so they can keep your deposit. However, a legitimate RTO is a professional bridge to homeownership.

The difference between a scam and a solution usually comes down to the contract details and the process of how they set you up for success. We'll give you a perfect example: Some providers include a gotcha clause in the contracts. It's where if you are one day late on a payment, you are considered to have broken the contract which could put your deposit at risk.

While consistent on-time payments are critical (because a mortgage lender will check your payment history when you go to buy the home), a client-first provider like Chilkoot Homes understands that life happens. Our rent-to-own contract includes a reasonable grace period. We aren't looking for a technicality that sees you fail; we win when you successfully buy the home at the end of the RTO.

Read to the end of this blog for a Red Flag Checklist of what to watch out for to avoid shady providers.

Myth 5: "It Solves an Income Problem"

RTO solves for credit issues or down payment gaps , but it does not solve for low income. The only case it could help is if you are a business owner who purposely takes a low salary as part of tax planning, but you can show business income that you can leverage.

If your household income doesn't support the purchase price of the home today, it is not likely to support it in three years. However, if your income is strong but you need time to pay down debt to reduce your debt-to-income ratio , RTO is a perfect solution.

We are honest with our clients from the start. If the math doesn't work for your income level, we won't set you up for a high likelihood of failure.

Myth 6: "I Won't Have a Landlord"

We aren't your financier in a legal sense, but we have purchased the property and you have an agreement that gives you the right to buy it within the 2-4 term of the RTO agreement.

This means there is a Lease Agreement in place, although, you have more freedom than a typical tenant. You want to paint the kitchen? Go for it. Have animals? This is their home too! Want to develop the basement? We can talk about it. Because we hold title and pay for home insurance, we still need to be informed of major changes so that there is never a lapse in insurance (an uninsured loss wouldn't be good for you or us).

While RTO provides way more flexibility—you still have a landlord technically speaking . Remember, RTO is a bridge that can help you get to mortgage qualification independently. But, even with a mortgage, you still have rules to abide by in the terms and conditions and penalties that will apply if you break the mortgage early.

One thing we pride ourselves on at Chilkoot Homes is being an advocate for financial literacy and helping our clients get great at budgeting. Because of this, we commit to fixed term lease agreements that provide rental stability for the entire term of the RTO. This means you will consistently pay the same amount of rent, and you won't deal with rental increases year over year.

Red Flags: How to Avoid a Shady Rent-to-Own Company

The RTO industry in Alberta isn't regulated like the mortgage industry, which means you have to do your own due diligence. Watch out for these:

The One Day Late Gotcha Clause: Some contracts state that if you are a single day late on rent, your entire option deposit is voided. While being late is never good (it hurts your future mortgage qualification), life happens. A fair contract includes a grace period. If they are looking for a reason to cancel your contract, they aren't your partner.

Ignoring the Basics: A reputable provider won't sign you up if the math or the law doesn't work. For example, if you haven’t cleared your three-month job probation, that is a bare minimum of stability to get started in a rent-to-own. The same applies to Permanent Residency. If you are here on a visa and don't have PR or Citizenship, you fall under the Foreign Buyer rules in Canada. A reputable company won't qualify you until you have PR, because you won't be able to easily and legally close on the home at the end of the term.

No Mortgage Broker Involvement: If the company qualifies you themselves without sending you to a licensed mortgage broker for a deep dive into your credit and qualification criteria, run. You need a professional to map out your path to mortgage approval. And run even faster if they do not provide annual check ins with a mortgage broker to help keep you on track to success. This is also true if they give you an "approved purchase price" before they've even sent you to a mortgage broker. A reputable provider will never start an RTO without a licensed mortgage broker’s involvement.

Unnecessarily Large Deposits: If a provider sees you have $40,000 in savings and demands or pressures you to use all $40,000 for the initial deposit, that's a huge red flag. Any financially savvy person will tell you to take some of that money to put into an emergency savings and/or pay down high-interest debt. While we do have a minimum initial deposit requirement of 4% of the price of the home, or $17,500, and it does sometimes make sense to put in a higher amount to keep monthly costs down, if our clients have above and beyond what is required to successfully set up their rent-to-own, we will give them the advice that sets them up for success, not failure.

Lack of Transparency: Just like a mortgage, you are making a big commitment. If the provider doesn't transparently walk you through their contract terms, pros and cons, how they make money, and also doesn't separate out your rent and option deposit payments, this is a big red flag.

No In-Person Support: If you they don't offer annual mortgage check-ins with a licensed broker, or provide regular in-person check-ins with a rent-to-own specialist, they are a high-volume provider, not a client-first partner.

Ready to Talk to Us about Rent-to-Own in Alberta?

We are a boutique team. We don’t want 100 clients; we want to help 5 or 6 clients a year who actually cross the finish line and become homeowners. We make sure all of our clients realize that rent-to-own requires commitment, discipline, and a clear-eyed understanding of exactly what it entails.

If you want to understand more about our process and how rent-to-own works in Alberta with Chilkoot Homes, click here or Get in touch with us today .

Rent to Own in Red Deer: A Flexible Pathway to Homeownership

jberubemarketing@gmail.com (Jonathan Berube) — Thu, 07 Nov 2024 03:09:38 GMT

Can Rent-to-Own be a Solution to Buy a Home in Red Deer?

Are you interested i n buying a hom e in Red Deer but facing challenges with a traditional mortgage? A rent-to-own option could provide a flexible path to homeownership, allowing you to live in the home as you build up your finances and credit.

If you're interested, read more to learn about:

The Basics of How Rent-to-Own Works
Steps to Get Started
Bonus: Why Red Deer is Great!

The Basics: How Rent-to-Own Works

Rent to own, also known as lease-to-own, is an alternative path to homeownership that combines renting with a future option to purchase. In Red Deer's growing real estate market, this arrangement provides a stepping stone for aspiring homeowners.

Rent-to-own is especially helpful for those who need time to save for a down payment, strengthen their credit, or pay down some debt. With this option, you sign a lease agreement and a separate purchase agreement, which together outline your monthly payments and the terms of future ownership. A portion of what you pay monthly will go toward accumulating your future down payment when you exercise your right to purchase.

Rental Agreement: This is the "rent" part of rent-to-own. This rental agreement will match the term of your rent-to-own, usually 2-4 years. This keeps your payments consistent and helps you budget for success.
Option to Purchase: This is the "to-own" part of rent-to-own. Think of this like a long-term purchase contract. At the end of the rental period, you (and only you) have the right to buy the home at a pre-determined price. A portion of what you pay monthly will go toward accumulating your future down payment when you exercise your right to purchase. By then, you will have contributed a minimum of 10% towards your option deposit sed for your future down payment at the end of the rent-to-own term.

One of the unique benefits of our Red Deer rent-to-own program is that you’ll have the freedom to choose your future home from the open market. You can explore listings on Realtor.ca and work with a real estate agent to find a home that truly suits you, giving you the full experience of buying a house.

Our priority is setting you up for success, and we support you every step of the way, including behind-the-scenes assistance such as:

Financing the Property: We finance the home at the start of the program, purchasing it on your behalf.
Boosting Your Credit: With your permission, we report your on-time payments, helping to improve your credit score.
Covering Essential Costs: We handle mortgage payments, insurance, and property taxes throughout the term.

Many of our clients turn to us because they don’t yet qualify for a traditional mortgage. We work closely with you to improve essential factors like income, job stability, credit score, and debt-to-income ratio, helping ensure you’re ready for mortgage approval by the end of the rent-to-own period.

At Chilkoot Homes, our commitment is to guide you through each step, preparing you for a smooth transition into homeownership.

Taking the First Steps: How Do You Get Started with Rent-to-Own

Assess Your Finances: Evaluate your credit score, income, and savings to ensure you’re prepared for the responsibilities of a rent-to-own agreement. This option gives flexibility, but it’s essential to be ready for homeownership. We will help you with this by connecting you with a licensed mortgage broker to complete your Credit Renovation Plan or Qualification Plan . If you're ready to get started, fill in a rent-to-own pre-qualification application here .
Partner with a Reputable Rent-to-Own Provider: Working with a knowledgeable provider will help you understand the process and find a home that fits your financial situation. A reputable provider will provide full transparency on the agreements and will ensure you get pre-qualified with a licensed mortgage broker before entering a rent-to-own agreement. They will also ensure to do regular check-ins with you to make sure you are on track to success.
Sign the Agreements and Settle In: Once everything is in place, you can enjoy living in your home while making progress toward ownership. We'll work with you every step of the way.

Why Red Deer is Great!

Red Deer offers a welcoming community atmosphere with the amenities of a mid-sized city. Here are a few reasons why rent-to-own may be an appealing option in Red Deer:

Affordable Home Prices: Red Deer’s housing market is more accessible than larger cities, making it a realistic choice for first-time homebuyers.
Strong Job Market: With a diverse economy driven by industries like oil, healthcare, and education, Red Deer provides steady job opportunities that support long-term financial stability.
Family-Friendly Communities: Red Deer’s neighbourhoods are known for excellent schools, parks, and recreational spaces, making it a great place to put down roots.

Is Rent-to-Own Right for You?

Rent-to-own offers a flexible route to homeownership, and in a community like Red Deer, it’s an attractive option for many people. By allowing time to save and build credit, it provides a viable solution for those eager to buy but unable to secure a traditional mortgage.

If you’re interested in learning more, consider speaking with a trusted rent-to-own provider like Chilkoot Homes who can help clarify the process and guide you through the next steps toward owning a home in Red Deer.

Taking this approach could be the beginning of a rewarding journey to homeownership.

Bonus: Red Deer Neighbourhoods You'll Love

Here are some of the most popular neighbourhoods to consider for your rent-to-own journey:

Deer Park: Deer Park stands as one of Red Deer's most family-friendly communities. The neighborhood features tree-lined streets and offers a perfect blend of older character homes and newer constructions. Its strong sense of community and excellent amenities make it an ideal choice for families looking to put down roots through rent-to-own programs.
Clearview: Clearview represents the future of Red Deer living, with its modern developments and thoughtful urban planning. This rapidly growing community attracts many first-time homebuyers due to its excellent location and newer housing stock. The neighborhood's proximity to shopping centers and recreational facilities adds significant value for potential homeowners.
Anders: Anders has established itself as a highly sought-after community in Red Deer, particularly for young families and professionals. The neighborhood offers diverse housing options, from cozy starter homes to larger family residences, making it perfect for those seeking rent-to-own opportunities. Its strategic location provides easy access to major roadways while maintaining a peaceful suburban atmosphere.
Timberlands: Timberlands showcases the best of modern Red Deer living. This newer development features contemporary home designs and well-planned community spaces. Residents enjoy an abundance of green spaces and walking trails, while the neighborhood's growing popularity suggests strong potential for property value appreciation - an important factor for rent-to-own arrangements.
Inglewood: Inglewood offers the perfect blend of affordability and established community living. This mature neighborhood appeals to many first-time buyers due to its diverse housing options and character-filled streets. The area's stable property values and strong sense of community make it an excellent choice for those considering the rent-to-own path to homeownership.

As you explore rent-to-own options in Red Deer, we hope this guide offers a helpful overview of what to consider. With Chilkoot Homes by your side, you’ll have the resources, guidance, and confidence needed to reach your goal of homeownership.

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute financial, legal, or professional advice. Consult with a qualified financial or legal professional before making any decisions related to rent-to-own agreements or property purchases.

A Guide on Rent-to-Own in Edmonton: How It Works

jberubemarketing@gmail.com (Jonathan Berube) — Fri, 18 Aug 2023 03:26:57 GMT

Can Rent-to-Own be a Solution to Buy a Home in Edmonton?

Are you ready to turn your goal of owning a home in Edmonton into a reality? Even with all the media surrounding housing, the goal of homeownership could be more achievable than you think with the option of rent-to-own. In this guide, we'll take you through the process step by step, highlighting essential details that you need to know, including:

What's involved
Roles and responsibilities
Mortgage qualification

Plus, we'll end off this guide with a quick look at some of our favourite Edmonton neighbourhoods that we see still maintaining their affordability .

Making a Commitment to Your Future

The journey to homeownership through rent-to-own starts with a fundamental element: commitment. Just like regular homeownership, you're making a big decision that you're going to be sticking by for many years to come.

Future homeowners who work with us at Chilkoot Homes need to have a minimum of $15,000 or 3.5% upfront that goes toward your future purchase of the home. This initial amount that you put in signifies your determination to become a homeowner and gives us peace-of-mind (especially considering we'll have to put a minimum of 20% down – sometimes over $100,000 – to purchase the property for you at the outset).

You'll also have to consider, just like any rent-to-own program, that there is going to be two portions of your monthly payment: a portion that goes toward your rent, and a portion that goes toward your future purchase. There are also costs like internet and utilities that you have to make sure you can comfortably afford.

Of course, once you own the house at the end of the rent-to-own program you'll be responsible for the costs of home ownership: m ortgage principal and interest, insurance, taxes, utilities, and repairs. Part of the work we do with you throughout the rent-to-own program is getting you into the right financial habits so that you can easily handle the full costs of owning a home when it comes time for you to own it outright.

However, commitment in a rent-to-own context goes beyond mere financials. By engaging in a rent-to-own agreement, you're essentially agreeing to purchase the property at a later date because you're unable to qualify for a traditional mortgage right now. This commitment is through an "Option to Purchase" contract. In simple terms, this contract grants you the option to buy the property at a predetermined price by a specific date in the future. This flexibility ensures that you can decide based on your evolving circumstances.

Lastly, you are making a commitment to your financial future. A part of our requirements when we work with our future homeowners is that they are agreeing to building their financial literacy skills to create a better financial future for themselves and their families.

Roles & Responsibilities

Like we mentioned above, your financial future is incredibly important to us. It's also important so that you can qualify for your own mortgage at the end of the rent-to-own term, within 2-4 years. Because of this, there are specific responsibilities that our clients have when working with us:

Quarterly check-ins with a Chilkoot Homes rent-to-own specialist, including budgeting reviews to help you become a successful budgeter (and realize the positive impacts it can have in your life!)
Annual check-ins with the Mortgage Broker to make sure you're staying on track to success

Although our service is all about making you a homeowner, our mission is about empowering you with financial literacy skills that you'll use for a lifetime and pass down to your kids. Through this process we hope to teach you more about credit, budgeting, mortgages, and to help demystify the complex world of finance.

An appealing part of our rent-to-own program, and something that makes us different, is that you will get to shop for your future home on the open market. This means that you can go onto Realtor.ca and shop for a home with a real estate agent, getting the full experience of buying a house!

Our responsibility is making sure that you are successful, and we take every measure possible to do that. This includes many things that we do in the background like:

Financing the house at the beginning of the program so we can buy the house for you
Reporting your on-time payments to help boost your credit score
Paying the mortgage, insurance, and taxes

The reason why folks like you work with us is that they are unable to qualify for a mortgage from a bank. We work with you to ensure certain qualifying factors are in order for you to get your own mortgage by the end of the rent-to-own term. These factors include your income, job history, credit score, and debt service ratio.

Chilkoot Homes is committed to guiding you through this process to set you on a trajectory that transitions you to homeownership.

Your Path to Mortgage Readiness

Understanding the components that lenders evaluate for mortgage approval can demystify the process and empower you to take actionable steps. This is a part of the work we do with our clients to get them set up for success in a rent-to-own program.

Here's a brief overview of what lenders generally look at when deciding whether or not you get a mortgage.

Income: A consistent and stable income is a cornerstone of mortgage qualification. In Canada, you'll generally need at least 2 years of steady income history in the same industry. That means, even if you've been working for the last 10 years straight, but 6 months ago decided to switch from nursing to business admin, you wouldn't qualify
Credit Score: A strong credit score speaks volumes about your creditworthiness, especially now where your credit score is the only way a lender "gets to know you." You'll generally need a credit score of at least 680 to qualify for a mortgage.
Debt Service Ratio: This ratio measures your ability to pay your debt. Regardless of how much you make per year, if you're holding too much debt, you are likely to be declined for a mortgage (talk to us about this to hear our story on how we had to qualify for our first mortgage!)
Down Payment: This down payment is how much money you need to put in up front to purchase the house. The minimum down payment is going to range between 5%-20%. A lot of factors play into how much you'll need to put as a down payment, but the absolute minimum is 5% (and if putting a down payment less than 20%, you'll be required to purchase mortgage insurance).

There may be solutions you can explore other than rent-to-own, but if you're ever in doubt we're happy to have a call with you to answer your questions. You can book a free discovery call with us here .

Edmonton Neighbourhoods we Love

As you embark on this enriching journey toward homeownership, it can be fun to start exploring some areas in Edmonton that balance affordability with being great neighbourhoods. Here are a few worth considering:

Strathcona: Known for its eclectic mix of historic charm and modern flair, Strathcona boasts a lively atmosphere with trendy boutiques, inviting cafes, and a close-knit community spirit. Its walkable streets and proximity to local attractions make it a sought-after destination for those seeking a vibrant urban experience.
Highlands: Lined with tree-shaded streets and historic homes, Highlands offers a tranquil retreat from the urban bustle. Its close proximity to the lush River Valley and strategic transit access make it an ideal haven for those seeking both natural serenity and convenient city connections.
Queen Alexandra: Boasting a rich cultural tapestry, this area is known for its variety of housing options and lively community events. With its convenient location and unique character, Queen Alexandra stands as a testament to the city's inclusive spirit and welcoming atmosphere.

As you consider rent-to-own homes in Edmonton, we hope this guide could provide you a brief overview of the things you'll need to consider. With Chilkoot Homes as your companion, you'll traverse this journey with the tools, skills, and assurance you need to achieve your goal of becoming a homeowner.

5 Pro Tips to Improve Your Credit Score

info@chilkootinvestments.com (Jonathan Berube) — Wed, 14 Jun 2023 13:16:32 GMT

Improving your credit score is essential in Canada as it determines your eligibility for loans, mortgages, credit cards, and even rental applications. A good credit score can help you secure better interest rates and loan terms, while a bad score can make it difficult to get credit and lead to higher interest rates.

In this blog, we'll explore the five ways to improve your credit score in Canada and give you an overview of the two major credit reporting agencies, Equifax and TransUnion, and their key differences.

1. Pay your bills on time

Payment history is the most important factor in determining your credit score, accounting for 35% of your score. Late payments, collections, and bankruptcies can have a negative impact on your credit score and remain on your credit report for up to seven years. To avoid this, make sure to pay your bills.

Pro tip: Set up automatic payments by calling your credit card and utility companies to pay your required minimum payment. That way, you never run the risk of a late or missed payment.

2. Keep your credit utilization low

Credit utilization refers to the amount of credit you're using compared to the amount of credit available to you. It makes up 30% of your credit score. The lower your credit utilization, the better your credit score. It's best to keep your credit utilization below 30% of your available credit limit.

For example, if you have $10,000 in available credit – $5,000 limits on 2 different credit cards, let's say one Visa and one MasterCard – you want to try to maintain balances of the following:

Mastercard: A balance of $1,500 or less
Visa: A balance of $1,500 or less

In this scenario your overall utilization rate is 30% ($3,000 balance of $10,000 credit limit) and each of your individual card balances is at 30%. There is a bit of debate about whether credit bureaus will determine your utilization rate based on each your individual credit instrument (like a credit card), or your total. It's best to be safe and keep both low.

3. Dispute errors on your credit report

Errors on your credit report can negatively impact your credit score. It's essential to regularly check your credit report for errors and disputes any incorrect information with the credit bureau. In Canada, you can request a free copy of your credit report from Equifax and TransUnion once a year.

You can also use free tools in Canada the Credit Karma or Borrowell to monitor your credit absolutely free.

4. Limit new credit applications

Every time you apply for credit, it generates a hard inquiry on your credit report, which can lower your credit score. Limit new credit applications and only apply for credit when you need it.

5. Keep old credit accounts open

The length of your credit history makes up 15% of your FICO score. The longer your credit history, the better your credit score. Keeping old credit accounts open, even if you don't use them, can help improve your credit score.

So, What The Heck are TransUnion and Equifax?

In Canada, there are two major credit reporting agencies in Canada: Equifax and TransUnion.

TransUnion

TransUnion is a leading credit reporting agency in Canada, and around the world. They collect and aggregate credit information on businesses and consumers across the continent.

TransUnion collects credit information from various sources, including banks, lenders, and credit card companies.

Equifax

Equifax is one of Canada's largest credit reporting agencies, and one of the 3 largest consumer credit reporting agencies in the world.

Equifax collects credit information from a variety of sources, including banks, credit card companies, and government agencies.

The key difference between Equifax and TransUnion is the type of credit information they collect. Equifax focuses more on financial information, such as loans, mortgages, and credit card accounts, while TransUnion collects information on both financial and non-financial accounts, such as rental and utility accounts.

Can I Qualify for Rent-to-Own with Bruised Credit?

Yes! Rent-to-own is ideal for those with bruised credit, no credit, low down payment, or unique circumstances such as being self-employed, divorced, or widowed. Chilkoot Homes offers a rent-to-own program that can help you achieve your goal of becoming a homeowner while also helping guide you to improve your credit.

With Chilkoot Homes, you can move into your future home today, all while working to build your credit. Contact us to learn more.

4 Benefits of Rent-to-Own Home Ownership in Canada

info@chilkootinvestments.com (Jonathan Berube) — Tue, 31 Jan 2023 13:28:16 GMT

The Basics of Rent-to-Own

Rent-to-own home ownership has become a popular option for Canadians who want to become homeowners but face challenges such as a lack of a down payment, poor credit history, challenges with verifying income, or for new immigrants.

If you're considering rent-to-own, here are some of the basics.

Ultimately it allows you to live in the home you eventually want to own, while giving you time to improve your financial situation. This is meant to set you up so that you can qualify for a mortgage on your own when it comes time to move from the renting to the owning part of the equation.

And with rents in Canada continuing to climb , and home purchase prices declining, now is a great time to consider rent-to-own as an option.

"I will forever believe that buying a home is a great investment."

- Oprah Winfrey

The 4 Big Benefits of Rent-to-Own

This type of home purchase option isn't for everyone, but it can be a great solution for a lot of people – especially those who are ready to get out of renting and are ready to take a serious path to homeownership.

Here are 4 key benefits if you're considering rent-to-own.

1. Affordability

Rent-to-own allows prospective homebuyers to live in the home they eventually want to own while also putting money towards a down payment if they choose to purchase. Future buyers can lock in a purchase price at the start of the rent-to-own agreement and make small incremental payments towards the option to purchase the home. This is an avenue to avoid high lump-sum down payment requirements. Plus, this allows future buyers to wait out the volatility of inflation and high interest rates that we're seeing in 2022-2023.

2. Credit & Financial Improvement

At Chilkoot Homes, we're passionate about financial literacy, and we want to teach people how to take control of their personal finances. We believe this is one of the greatest benefits of rent-to-own.

Rent-to-own gives future homeowners the opportunity to improve their credit score. When you become a tenant-buyer with us and you make timely rent payments, we'll report those on-time and in-full payments to credit bureaus, helping to improve your credit score. We also work with you on a regular schedule and provide you access to our trusted network of homeownership pros to get confidential financial advice you can trust.

During the life of the rent-to-own agreement – usually 2-3 years – we work with you so you can improve your credit score and qualify for a mortgage at the best possible interest rate when it comes time to buy.

3. Flexibility & Support

Consider rent-to-own as a homeowners training bootcamp. It's a way for you to test out homeownership and make sure it's truly something you want. But, instead of trying to navigate this all on your own, you'll have the team from Chilkoot Homes there to support you.

It's also easy to get sucked into the emotion of buying without proper due diligence. We've seen this countless times where a person gets talked into buying a home without any conditions – not even having the chance to get a proper home inspection to see if there is an issue that could end up costing tens of thousands of dollars. Ouch.

We can't stress enough how bad of an idea this is to make what could be the largest purchase of your life, and not make sure you have so much as an inspection. We won't let stuff like that happen. If a home is a bad investment, or the seller or real estate agent is unreasonable, we just won't buy it.

If it wouldn't be good enough for us, it shouldn't be good enough for you.

We've got your back.

4. Path to Home Ownership

Life happens. To each and every one of us. Heck, we remember making less than ideal financial decisions when we were 18 years old. Luckily, we learnt our lessons when we were young. Now, we want to help others either avoid those same pitfalls or give you a hand up from a tough situation life may have thrown at you.

At the end of the day, rent-to-own is a path to homeownership. It's an opportunity to build equity in a home and eventually own a piece of property. Don't fall into the trap of pessimism, thinking homeownership could never be a potential for you.

Homeownership can be in your future. We believe it, and we hope you do too.

Ready to Learn More?

If you're reading this and you've gained a little bit of optimism and you're ready to get your goal of homeownership on track, we invite you to meet with us. We'll break down all the details, what's involved, and see if this is a fit for you now. Even if it isn't, we'll give you some tips, tricks and tools to set you on the right path.

Don't wait any longer. Schedule a FREE Homeownership Evaluation with us today.

Top 8 Edmonton Festivals to Attend

info@chilkootinvestments.com (Jonathan Berube) — Tue, 13 Dec 2022 14:14:59 GMT

Hey there, Edmontonians! Edmonton is a proud 4 season city, and as a city known for its arts and culture scene, there is no shortage of things to do, summer or winter. Whether you're looking for music, food, art, or just a fun day out, there's something for everyone, and all while keeping your budget in mind!

Here are our top 10 picks for annual outdoor festivals that you should add to your calendar.

1. K-Days
K-Days is one of the largest festivals in Edmonton and takes place annually over a 10-day period in July at Northlands. K-Days celebrates all things Alberta and showcases the best of the province, including local music, and entertainment. K-Days also features a massive midway filled with rides and games, and a large outdoor market that showcases local artisans. In addition to these attractions, the festival also offers a number of interactive experiences and live performances, making it a great family-friendly event. General admission is usually under $20, but you can oftentimes find better deals if you pre-buy your tickets at participating retailers. It's still a great way to get out and experience the energy of the midway.

2. Heritage Fest
The Heritage Fest is a cultural celebration that takes place over the August long weekend in Hawrelak Park. The festival features performances and demonstrations from over 80 cultural groups from around the world on over 25 stages. This festival is a great opportunity to learn about different cultures, sample traditional food, and enjoy live music and dance performances. Admission is free, and the festival also has a children's area with activities and games.

3. The Fringe Fest
This summer festival is one of the largest Fringe festivals in the world and takes place over 11 days in August in Old Strathcona. With hundreds of local, national, and international performers, there's something for everyone. And while tickets for shows are required, admission to the street festival is free and includes food vendors, live music, and street performers.

4. The Works Art & Design Festival
This summer festival takes place in July and features local and national artists displaying and selling their work at venues throughout the city with the main events happening at Churchill Square. We love it, because not only is it almost entirely free, it's a great way to explore the city! You can also enjoy live music, food, and drinks from local vendors.

5. Ice on Whyte Festival
Bundle up and head on down to Old Strathcona – Edmonton's epicentre of arts and culture! This winter festival takes place in January and is all about ice, and is " Edmonton's International Ice Carving Competition ." You can admire incredible ice sculptures, enjoy ice-carving demonstrations, and warm up with food and drinks from local vendors. The festival takes place on Whyte Ave and admission is free.

6. Edmonton International Jazz Festival
This summer festival takes place over several days in June and features local and international jazz musicians at venues throughout the city. You can catch some great music and enjoy food and drinks from local vendors. While tickets are required, there are also free events and outdoor performances.

7. Edmonton International Film Festival
EIFF is an international gathering of cinema buffs that takes place in September and showcases the best in Canadian and international cinema. With a mix of feature films, shorts, and documentaries, there's something for everyone. While tickets are required, there are also free and low-cost events and outdoor screenings.

8. Whyte Avenue Art Walk

Art Walks are on on our personal favourite ways to spend time together without breaking the bank. In Edmonton, this event takes place in August and is a celebration of the arts in Edmonton. You can enjoy live music, food, and drinks, and participate in various workshops and activities. There is no cost to get out and browse all the amazing visual and performing arts.

Being on a Budget Doesn't Have to Be Boring

So, there you have it! These are the top 8 budget-friendly ideas for things to do in Edmonton. We're really passionate about sustainability and it's why when we work with clients we help them build a budget that also gives them room to live.

It's like being on a diet that restricts you to broccoli and boiled chicken 7 days a week. You're bound to snap and bing on chips! We're speaking from experience here.

So when you build your budget don't deprive yourself of entertainment, just find more budget-friendly ways to get out with your family. If you're ready to build a budget so you can reach your goal of homeownership, download our free easy-to-use budget template today!