Rent-to-Own

We currently offer 3 Types of Rent to Own (as well as a host of normal loan types):

a) Lease Option

You don’t need to pay the stamp duty until you refinance at the end. The duration of a Lease option can range from 3 months to 3 years (depends on your circumstances). This gives you time to save for the stamp duty and you enter into a type of tenancy agreement. We encourage you to fix the house and pay down your loan balance as quickly as possible so you can refinance. Most people choose this way to refinance with high cash flow as opposed to
using the increased equity. 

b) Extended Settlement or Deposit Builder

This is a relatively new contract and is basically a normal purchase contract that allows you to occupy the property until you settle. This contract is good for people who have large deposits or will be able to get larger deposits in the near future. Stamp duty is required to be paid within 3 months of exchange of contracts. The rent and the rates are the weekly repayments and then anything above that reduces the deposit. With this contract, you will need to make sure that you can refinance yourself so you need to make sure that you can get the remaining deposit by the contract settles. The three types of contracts can be combined and used as best suited to the customer.

c) Instalment Sales Option

You exchange but don’t settle for an agreed period of time (up to 30-40 years like a normal bank loan). You need to pay the stamp duty up front so it requires you have some good savings. Most people will aim to refinance within 5 years and we provide incentives to help you do that. We encourage you to fix the house and pay down your loan balance as quickly as possible so you can refinance.

Easy qualifying means that you do not have to jump though the hoops like a Bank. All we require is a basic application be completed and emailed or faxed to us. 

There is NO COST OR OBLIGATION to you.

As long as there is not a history of not making repayments this should be ok. We are more interested in ensuring that you pay your rent on time. Your credit history will affect what sort of contract that you will be able to get. 

The process once you have approved is listed below:

1. Provide an initial deposit to start the contracts to be written up.
2. Nominate and see your solicitor – we can recommend solicitors that have been involved in similar type of contracts.
3. Sign the contracts.
4. You will then need to provide Nexfer with the remaining agreed deposit.
5. You then get to move into your new home!

The costs involved are once you have selected your property are:

1. “Move in” deposit that goes towards the property.
2. Your solicitor fees – estimated $1,400 depending on your solicitor

You can place a caveat on the title deed. It clouds the title preventing the investor from selling or refinancing the property without your express written permission. This is so all parties remain to the written contract.

We insist on you seeing a solicitor. It is important to consult a solicitor or conveyancer for explanation of the contract (which forms part of a contract for sale of land) to ensure that it represents the agreement reached with the vendor (seller) of the house, to have the title and features of the contract explained.

Yes for certain contracts. However, remember that in all likelihood it would be a couple of years until you build up enough equity to qualify for a new loan. The property is sold to you at a higher value than the current market rate.

Yes, that’s the goal of the arrangement. You may use any lender to refinance the loan
and move to a lower interest rate. However, remember that in all likelihood it would be at least
a couple of years until you build up enough equity to qualify for a new loan. To refinance, you
MUST pay on time and provide a 6 monthly statement with a good repayment history and have
saved up deposit and added equity to the home.

We organise householders insurance for replacement value of the building,
fixtures and fittings. We currently have Elders insurance underwrite the policies for this type
of transaction. The cost of insurance is passed on to you through the contract arrangement.

As it is your home, you will be paying the rates and insurance. We build this amount
into your weekly rent and we look after these outgoings when they come in.

Yes. This is due to the fact that the banks expect any structural changes to
go through the proper authorities. If council approval is required, then you would be
expected to go through the council for alterations.

In order to streamline the payment process, the Ezidebit system deducts the required amount from your bank each week. You don’t need to worry about sending the funds across each week. All you are required to do is ensure there are sufficient funds in your bank account on the day the funds are due.

This has been included to provide you with a level of protection in the event of injury or some other calamity. You underlying payments will still continue should this event happen to you (we hope it doesn’t but it has occurred to some of our customers).