What is Rent to Own?

Rent-to-Own is becoming a popular way for selling a property, especially in areas where the market is slow. We are seeing more and more companies advertising that they have a house or condo for sale, and offering to do Rent-to-Own. But not a lot is known about exactly how it works, and to whose benefit.

Rent-To-Own is very similar to a car lease.
With a car lease, you put down a deposit and make payments for a specified period of time. At the end of the lease, you have the option (not the obligation) to purchase the car for a predetermined price.

Rent-to-own works in much the same way. A buyer puts down a “purchase option” deposit, usually less than the traditional 5% required by the bank, and makes a monthly payment. And a portion of the rent is credited towards the future down payment.  The end purchase price is predetermined at the time of signing.

The Rent-To-Own agreement involves two contracts; one contract will be a regular lease contract, and the other will deal with the purchasing part of the agreement. This contract will be for a period of time that is agreeable to both the seller and the buyer, usually anywhere from one year to three years. The buyer will have to pay the regular amount of rent, and in addition, they will have to pay a monthly installment that will be credited towards the down payment.

There are usually clauses in the contract that state if the buyer is late or misses any payment, the contract is null and void. As well, the buyer may be responsible for repairs and maintenance; however, sometimes the seller will accept responsibility for major maintenance issues.

What are the benefits of Rent-to-Own?
A Rent-to-Own agreement can be an excellent option for people who want–but are not financially ready–to become homeowners. A Rent-to-Own agreement gives them the chance to get their finances in order (by improving their credit score and saving money for a down payment, for example) while “locking in” the house they’d like to own. If the option money or a percentage of the rent goes toward the purchase price, they also get to start building some equity.

One thing to keep in mind is that house prices are always changing. The calculations are based on today’s prices, and it can be next to impossible to calculate what the house may be worth in the future. Sometimes this is addressed by agreeing to a certain percentage increase for each year of the term, and sometimes sellers will ask you to agree to pay the appraised value of the house at the end of the term. In this case, you may have to pay a little extra at the end of your term to meet the 5% down payment.)

A Rent-to-Own agreement allows potential buyers to move into a house while getting their finances in order to purchase the home in the future. It’s not without risks, since they could end up losing money if they don’t (or cannot) buy the property when the lease expires. You must be confident that this particular real estate deal is of benefit to you, and that you can afford to take the risk of not being able to follow through with the contract. If there’s a good chance you won’t be able to qualify for a mortgage or secure other financing by the time the lease expires, you should instead continue renting (with a “normal” lease), building credit and saving for a down payment. Then, when you’re ready, you can choose from any home on the market in your price range.

Not every seller will structure the Rent-to-Own in the same way, but as in any real estate deal, you can always try to negotiate the terms that are not satisfactory to you. It is very important that you get independent legal advice for any contract that you sign.

9 Easy Ways to Create Curb Appeal

Curb appeal is a term used to describe how your home looks from the exterior and how appealing it looks when viewed from the curb. This includes areas such as the lawn, patio, front door, exterior paint, trees, shrubs, and more. In a simpler sense, curb appeal is what the buyers initially see the moment they step out of their car.

 Curb appeal contributes greatly to the desirability of a home. Most real estate agents confirm that curb appeal can affect a buyer’s decision to purchase a home more than the square footage or the price of the home. It often means the difference between a house sitting for months or selling in a few weeks.

If your home is not particularly attractive from the outside, there are many ways to improve the curb appeal of your home without shelling out thousands of dollars in renovations. There are dozens of small, inexpensive home improvements that you can do to your house to add instant curb appeal. Adding curb appeal to your house not only makes it easier to sell, but it also gives your house that nice and finished look in which you can take pride in.

The following steps will help to quickly create curb appeal for your home.

1. Tidy up. Make sure you don't have old rusty junk lying around the yard, unless it is being used stylistically in a garden. Get rid of things that are just lying around. This would probably be the first step in improving the look of your lawn. Remove items such as old rope, boots, cracked pots, worn hoses, wrecked flower boxes, and other things.

 2. Trim up. Cut the grass and edge the borders with a weed trimmer. Take care to get rid of all weeds, including ones by the walls and around the mailbox post. Add a layer of mulch to cover up dull areas in the landscaping or flower beds.

 3. Build a healthy and green lawn. Adding some starter sod can make a big difference very quickly. Sod can be bought at lawn and garden stores and comes in rolls or squares. After you lay it across your yard, water it well, and you'll immediately have a lawn, with roots taking hold within two weeks.

4. Add some colour to your yard. Planting flowers will enhance the curb appeal of your home. Buying colourful plants that have already started blooming will immediately make a difference. They can either be planted in pots or in the ground. Use your imagination and choose flowers that bloom in colours that look good with your home.

5. Paint. Giving your home (trim and shutters too) a new coat of paint easily breathes new life into its appearance. However, make sure you select a colour palette that matches the architectural style of your home. For example, if you live in a historic home, you’ll want to stick to an authentic palette.

6. Update your front door. Greet guests in style with an eye-catching front door that makes a statement. You can find exterior doors in a variety of materials, from traditional wood to sturdy steel. The key is to select a door that suits your home’s architectural style. If your current door is in good condition, you can make it stand out by painting it a bold colour or adding windows, sidelights, moulding,s and more.

7. Illuminate paths and walkways with outdoor lighting. Install lighting fixtures that will complement the style of your home as well as help to create dramatic effects. Use fixtures with built-in motion detectors to enhance safety.

8. Add decorative accents. Top your exterior off with finishing flourishes such as trendy new house numbers that are clearly visible from the street. And while you’re at it, why not add a new mailbox? Or frame windows with new shutters?

9. Dress up your front porch or entry. Make sure you have an inviting place for potential buyers to sit and admire the landscaping. Even a small space has room for a chair or bench and a round table, or a stool to place a drink on. An outdoor accessory or two is fine, but keep it simple and uncluttered.

Keep in mind that simplicity is the key to creating curb appeal. A few flower beds that border and define walkways, curbs, and lawn areas, and a few flower pots next to the home are often enough.

Remember: Breaking projects up into small, manageable chunks —as your time and budget allow—is the best way to go, because even just a few design tweaks can make a big impact on your home’s curb appeal.

Is it a good time to refinance your mortgage?

There are times when it makes sense to refinance your mortgage. It is, however, important to have a clear financial objective in mind to be able to choose the most appropriate loan.
Since interest rates are declining, switching to a lower rate may save you a lot of money – possibly thousands of dollars per year. There are penalties for paying your mortgage loan before renewal; however, these could be offset by the extra money you save through a refinance.

What's your goal?
Before deciding whether or not to refinance, you need to determine what you want to accomplish. Remember, a refinance doesn't pay off the debt; it just restructures it, often at a lower interest rate and a different loan term than the current mortgage.

1. Reducing the interest expense is the most common goal of a refinance. But some homeowners also appreciate the ability to extend the loan back out to 30 years, reducing the monthly payment.
2. Debt consolidation is another goal of refinancing. If you have both a first mortgage and a home equity mortgage, combining the two mortgages into one fixed-rate mortgage levels out the payment over the loan term.
3. Getting cash from your home. The equity you have in your home can act like a savings account that you could access through a home equity loan or a cash-out refinance. This is usually done when you want to finance an important home improvement, pay for college, or pay off high-interest credit card debt. Whatever your reason, this may be the right option for you.

When to refinance?
After determining your reasons for refinancing, you need to consider whether the timing and circumstances make this the right time to get a new mortgage.

You may be better off staying with your current mortgage. For example, if your current mortgage has a high prepayment penalty, or if you plan to move from your home in the next few years or when the monthly savings gained from lower monthly payments may not exceed the costs of refinancing.

As a rule of thumb, it pays to refinance if you can get an interest rate at least two percentage points lower than what you are currently paying. Asking yourself a few questions may help you determine if you can save money:

• How much can I lower my current monthly payment?
• How long do I plan to stay in the house after I refinance?
• How much will I pay in refinancing costs?

How to refinance?
Refinancing is similar to the process you encountered when you closed on your first mortgage. It requires an application, credit check, new survey and title search, as well as an appraisal and inspection fees. As you know, this process can be quite lengthy and expensive.

Keep in mind, however, that by refinancing, you may extend the time it will take to pay off your mortgage. That said, there are many ways to pay down your mortgage sooner to save you thousands of dollars. Most mortgage products, for instance, include prepayment privileges that enable you to pay up to 20% of the principal per calendar year. This will also help reduce your amortization period (the length of your mortgage), which in turn saves you money.

Common Home Buying Mistakes

For most people, a home is the largest purchase they’ll ever make, so choosing the wrong property can have disastrous implications on your wallet and well-being. Buying a home is not an impulse buy. In most cases, you will have a few months’ notice before you actually go through with the sale. Planning ahead is critical, particularly if you don't have extensive financial resources. Whether you’re a seasoned or first-time buyer, here are a few home-buying mistakes to avoid.

1. Altering your financial pictures before closing
Do not make any major purchases or move money around until you're settled in your new home. When you make a major purchase, you limit the amount of money available for your down payment and decrease the amount of liquid capital in your name. Also, moving your money around could make it more difficult for the lender to properly document and measure your finances. So leave your money where it is until after closing.

2. Getting too attached to one property
In competitive markets, you may have to put in offers on several properties before one is accepted. Some buyers get so infatuated with one property that a rejected offer hits them hard. It’s okay to feel anxious, but you need to be able to fall in and out of love during a home search. If you find a home that you think is perfect for you and you don’t get it, you can’t stay down too long. You have to recognize that wasn’t the house for you.

3. Skipping the home inspection
Home inspections are not required when buying a house, and some sellers can rush the process and discourage an inspection. But buying a house without an inspection is extraordinarily risky because serious problems can exist with the electrical wiring, the plumbing, the roof, or the foundation. An inspector can identify problems before the closing, and you can then ask the seller to fix these problems. If you buy a house and skip the home inspection, you’re financially responsible for any problems that arise after closing.

4. Buying the wrong house
As a home buyer, the very first thing you should do is make a list of priorities and define home purchasing objectives. Figure out what features and benefits are most important and which you can live without. Before you sign on the dotted line, review this list and make sure the house you are about to purchase meets your requirements. It's easy to overlook a major factor that could come back to haunt you later.

5. Maxing out your spending power
Qualifying for a half-million-dollar mortgage does not mean you should buy a mansion; it is therefore wise to be a little more conservative. Homeowners have additional expenses such as property taxes, condo fees, and maintenance that renters do not. However, some first-time buyers fail to budget for these extra costs and assume they can afford a monthly mortgage equivalent to the rent they paid.

One buyer purchased a home that cost him about $100,000 more than he was comfortable spending. But he fell in love with the Victorian character: the high ceilings, sparkling chandeliers, and wide open space layout. A year later, he could no longer afford to make his mortgage payments. The house was too expensive for him to maintain. He would have been better off buying a smaller home in a more modest neighborhood. But he let his soaring emotions cloud his good judgment.  Make sure you do not go beyond the budget you assigned for the home purchase.

Home sale prices continue to decline and inventory rise, creating opportunities for home buyers

WATERLOO REGION, ON (September 5, 2025) —In August, a total of 536 homes were sold in the Waterloo Region via the Multiple Listing Service® (MLS®) System of the Cornerstone Association of REALTORS® (Cornerstone). This is a decrease of 1.3 per cent compared with the same period last year and a decline of 23.1 per cent compared to the average number of homes sold in the previous ten years for the same month. 

“The market is showing signs of stabilization, though we’re seeing a continued cooling trend compared to last year. While sales volumes have only slightly decreased year-over-year, the more notable change is in pricing, with most property types experiencing moderate downward pressure,” says Christal Moura, spokesperson for the Waterloo Region market.  

Total residential sales in August included 320 detached homes (down 5.6 per cent from August 2024), and 101 townhouses (down 1.0 per cent). Sales also included 62 condominium units (up 1.6 per cent) and 50 semi-detached homes (up 25.0 per cent).  

In August, the average sale price for all residential properties in Waterloo Region was $728,465. This represents a 5.5 per cent decrease compared to August 2024 and a 1.0 per cent decrease compared to July 2025.  

• The average sale price of a detached home was $846,405. This represents a 4.6 per cent decrease from August 2024 and a decrease of 1.3 per cent compared to July 2025.  

• The average sale price for a townhouse was $594,200. This represents a 3.2 percent decrease from August 2024 and a 1.7 percent decrease compared to July 2025.  

• The average sale price for an apartment-style condominium was $433,113. This represents a 6.0 per cent decrease from August 2024 and an increase of 4.2 per cent compared to July 2025.  

• The average sale price for a semi was $618,206. This represents a 5.5 per cent decrease from August 2024 and a 4.1 per cent decrease compared to July 2025. 

There were 1,028 new listings added to the MLS® System in Waterloo Region last month, an increase of 3. per cent compared to August last year and a 11.0 per cent increase compared to the previous ten-year average for August.  

The average time to sell a home in August was 32 days, which is the same as the previous month. In August 2024, it took 25 days for a home to sell, and the five-year average was 19 days. 

“Despite the softer market conditions, we are encouraged by the healthy increase in new listings, which gives buyers more options,” says Moura. “While our local market statistics indicate signs of stabilization, we are operating in a complex economic environment. The Bank of Canada’s decision to maintain interest rates at 2.75% for the third consecutive time provides some predictability for both buyers and sellers. However, economic uncertainty and the Bank’s focus on inflation, especially regarding shelter costs, remind us that we are in a period where both buyers and sellers need to stay informed and collaborate closely with their REALTOR® to navigate current market conditions.” 

View our HPI tool here to learn more: https://www.cornerstone.inc/stats/ 

CORNERSTONE cautions that average sale price information can help establish long-term trends but does not indicate specific properties have increased or decreased in value. The MLS® Home Price Index (HPI) provides the best way to gauge price trends because averages are strongly distorted by changes in the mix of sales activity from one month to the next.