- Joined
- Nov 18, 2007
- Messages
- 26
Hi there looking for some input from other investors who are using the RTO strategy.
Based on a conversation yesterday (with a Calgary Mortgage Broker and a Former President of the Alberta Mortgage Brokers Association) and a review of CMHC`s applied policy/rules it appears that the upfront option fee/monthly option credits must be 100% refundable for a lease option/rent to own.
As well the upfront option fee/monthly option credits cannot be applied to the down payment.
Given these two scenarios how are you handling the down payment at the end of the term as the option monies cannot be applied to the down payment only to lower the purchase price and what security does the seller/vendor have since the RTO buyer can opt out and request all of their monies back at the end of the lease option.
I`d greatly appreciate your feedback and comments.
Enjoy a great summer and see you at the REIN Bus Trip/Tour and Multi Family Workshop in Edmonton!
Based on a conversation yesterday (with a Calgary Mortgage Broker and a Former President of the Alberta Mortgage Brokers Association) and a review of CMHC`s applied policy/rules it appears that the upfront option fee/monthly option credits must be 100% refundable for a lease option/rent to own.
As well the upfront option fee/monthly option credits cannot be applied to the down payment.
Given these two scenarios how are you handling the down payment at the end of the term as the option monies cannot be applied to the down payment only to lower the purchase price and what security does the seller/vendor have since the RTO buyer can opt out and request all of their monies back at the end of the lease option.
I`d greatly appreciate your feedback and comments.
Enjoy a great summer and see you at the REIN Bus Trip/Tour and Multi Family Workshop in Edmonton!