Blog, Real Estate News and Insights, Tips for Homebuyers

The lure of Lease-to-Own

Gone are the days of strictly 100% cash purchases; nowadays buyers have more options on how to pay for properties they want to acquire.

Many are attracted to “lease-to-own” arrangements, because of the benefit of spreading out payments while already enjoying full use of the property. What a lot of people don’t realize is that in principle, the said arrangement can be applied to any titled property, provided one has enough ready cash to serve as “downpayment” or equity and is of good credit standing.

Ask yourself:

How much money do I have on hand?

• Banks will not shoulder 100% of the cost of a property, and will usually give you a loan for 60-70% of the total appraised value. This means that you will need to provide for a part of the cost, which will be called your equity (you can also think of it as a downpayment).
• As long as you can provide at least 30% of the total value of the property you wish to purchase, you can avail of a bank loan, using the property itself as collateral.

How much can I set aside for monthly payments?

• The term or period of mortgage is flexible, and can be adjusted to suit your budget for monthly payments.

Financing your dream home need not be complicated. We can assist you in finding a suitable bank, as well as help you prepare the necessary documentation for your mortgage needs.