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Frequently Asked Questions
At Royal Rouge Properties we understand how stressful it can be when you feel like you have exhausted every option looking for a home you can call your own. We are here to answer any questions you have, as well as to guide you through the process. Here are the answers to a few of the questions we get asked the most.
PROGRAM OVERVIEW
How does the Rent-to-Own program work? Royal Rouge Properties purchases a home that you choose and you move in as the future owner. During the program term you follow a structured savings plan that builds your down payment and improves your credit so you can qualify for a traditional mortgage. At the end of the term you purchase the home at the pre-agreed price.
What program lengths do you offer? Most clients are placed in a 2–4 year program, depending on how long it will realistically take to become mortgage-ready.
Is the future purchase price locked in? Yes. The purchase price is fixed at the beginning of the program using a conservative annual appreciation rate.
Can I buy the home early? Yes. If you qualify for a mortgage sooner, you can purchase the home before the scheduled program end date.
Can the program be extended if I’m not mortgage-ready? In many cases an extension can be arranged if you are close to qualifying and have followed the action plan.
QUALIFICATION & APPROVAL
If I am self-employed or earn commission income, can I qualify? Yes. We complete a full financial assessment to determine the right program structure for your situation.
What minimum credit score do I need? There is no strict minimum, but you must be in a position where your credit can realistically be improved to mortgage-ready within the program term.
Can I qualify with bad credit? Yes. You will receive a step-by-step action plan designed to help you reach mortgage qualification.
Can newcomers to Canada qualify? Yes. We work with newcomers who have stable income and a clear path to mortgage approval.
Can I qualify after a bankruptcy or consumer proposal? Yes, provided you have re-established income and are on a realistic timeline to qualify for financing.
What income is required to qualify? Your total household income should be a minimum of $100,000 per annum before taxes and you must have filed tax returns for the past 2 years.
Do I need to be a Canadian citizen or permanent resident? You must have legal status in Canada and the ability to obtain mortgage financing at the end of the term.
UPFRONT COSTS & MONTHLY PAYMENTS
Do I need a down payment to start? No traditional down payment is required. You provide an initial option consideration, which is the greater of 4% of the purchase price or $15,000.
What is the initial option consideration? It is your commitment to the program and forms part of your future down payment.
How are the monthly payments calculated? Monthly payment = market rent for the property + monthly option consideration (your forced savings toward the purchase).
Are the monthly payments negotiable? The rent portion is based on fair market value. The option portion varies depending on how much you provide upfront.
Are property taxes and insurance included? During the program term Royal Rouge Properties pays the property taxes and insurance.
Are utilities included? No. Utilities are the responsibility of the tenant-buyer.
How do the payments compare to a traditional mortgage? In most cases the total monthly payment is higher than traditional mortgage because while renting, some form of savings is also required making it higher than traditional mortgage.
Are there any additional fees? There are no hidden fees. All program costs are fully disclosed before you commit.
HOME SELECTION
Can I choose any home I want? Yes. You work with our team to select a suitable property from MLS listings that fits your budget and approval range.
What types of homes can I purchase? Detached homes, townhomes, and single family homes are eligible. Condos are not applicable due to condo fees.
What price range of homes can I qualify for? Your price range is determined by your income, debts, and mortgage readiness timeline.
Can I use my own Realtor? You will work with our in-house real estate team to ensure the property meets program requirements.
Which areas in Alberta do you serve? We operate in major Alberta markets and surrounding communities where suitable properties are available.
Are new builds eligible? Yes, in some cases, if they meet program and financing requirements.
DURING THE PROGRAM
Who is responsible for maintenance and repairs? You are responsible for day-to-day maintenance as the future homeowner living in the property.
Can I renovate or make improvements? Yes. Minor improvements are typically allowed. Major renovations require written approval.
Do you help me become mortgage-ready? Yes. You receive a personalized action plan and ongoing support throughout the program.
Do my payments help my credit? Your structured plan is designed to improve your credit and financial position for mortgage qualification.
Can I have roommates or rent out part of the home? If the roommates are relatives or family that is fine, however we do not allow for your property to be sub-rented to other tenants to avoid any legal or liability issues.
What if I need to relocate for work? We will review your situation and discuss the available options based on your contract.
MISSED PAYMENTS & PROTECTIONS
What happens if I miss a payment? Just like a traditional mortgage or lease, you are required to make payments on time. Continued missed payments may trigger legal remedies outlined in the agreement.
Is there a grace period for late payments? Yes. Specific timelines are detailed in your agreement.
Is my option consideration refundable? The option consideration is non-refundable however if at the end of the term, you are unable to qualify for the mortgage and choose to walk away, you will be refunded 10% of all the monies saved in the program.
Is my deposit held securely? Yes. All funds are handled through documented and legally binding agreements.
END OF TERM & EXIT OPTIONS
What happens at the end of the program? You obtain a mortgage and purchase the home using the down payment you built during the term.
What if I do not purchase the home? You may request an extension if you are close to qualifying, or you can exit the program subject to the terms of your agreement.
What if home values go up? You benefit because your purchase price is locked in.
What if home values go down? You still purchase at the agreed price, which is why we use conservative appreciation projections or we extend the program to another time when the market corrects itself.
COMPARISON & TRUST
How is Rent-to-Own different from renting? A portion of your monthly payment is credited toward your future down payment and you are working toward ownership.
How is your program different from other Rent-to-Own companies? You choose the home, receive a structured mortgage-readiness plan, and follow a transparent, fully documented process.
Why wouldn’t I just wait and buy traditionally? This program allows you to lock in a home today while you build the financial strength needed to qualify, however if you are better off waiting to buy traditionally we would ensure we communicate that clearly to you.
GETTING STARTED
How soon can I move into the home? The full process typically takes 6–10 weeks from application to possession.
I am ready to become a homeowner. What is the next step? Complete the application on our website or call +1 226-752-9670 to begin your assessment.
Do you work with me throughout the entire process? Yes. Our team supports you from application to final purchase.
