Anthem’s Proposed Rent to Own Program
How Does it Work?
The purpose of Anthem’s proposed Rent to Own (RTO) program is to provide a means to home ownership for local, first-time buyers. The traditional deposit/down payment structure of new homes can act as a barrier to those who may otherwise qualify to purchase their first home. The RTO program is not an affordable housing project but is instead intended to provide entry to the housing market for the “missing middle” segment who would like to transition to home ownership.
How? By allowing qualified purchasers to take immediate possession of their home and apply 24 months of market rent towards their down payment, greatly assisting their entry into home ownership.
A total of 25 homes (consisting of a range of sizes that appeal to a broad cross section of the market) have been selected for the RTO program.
- Anthem will receive applications for the RTO homes, and 25 purchasers will be selected from the qualified applicants via a lottery.
- Upon being selected for the program, participants will be required to enter into a Purchase and Sale agreement for their home.
- When construction of the homes is complete, participants will occupy the homes and will be required to make monthly market rental payments for 24 months.
The monthly rental payments would go directly into a Trust account, where they will accrue towards the down payment. As a general guideline, current market rents in the area for homes in new multifamily developments range from $1,650 for 1-bedroom homes, to $2,800 for 3-bedroom homes.
- All (100%) of the accrued rents for the homes will apply towards the deposit for either a conventional or high ratio insured mortgage (up to 95% loan-to-value).
- Selected purchasers will still be responsible for paying the strata fees and property taxes associated with their homes during the RTO period, as would be expected of any homeowner.
- The strata fees and property taxes will not form part of the accrued deposit funds.
Four Years of Purchase Price Certainty
At the end of the two-year term, the purchasers will complete the sale at the price that was established in their Purchase and Sale agreement. When taking into account the project construction timeline and the two-year RTO period, the purchase price will have been locked in for a period of at least four years. This effectively provides four years of purchase price certainty.
Interested in the Rent to Own Program?
Please fill out the form below with your contact information and we will be in touch!
Participant Selection Criteria
Applicants will need to fulfill the following requirements and sign a statutory declaration confirming the following:
- Must be a first-time homebuyer;
- Must live or work in North Vancouver (City or District);
- Must be a Canadian Citizen or Permanent Resident;
- Must agree to use the home as a primary residence and not as an investment unit and personally live in the home for the two-year RTO period;
- Must pre-qualify for a mortgage at the average value of the home they intend to purchase; and
- Must declare that they do not have sufficient funds available for a deposit, either from their own assets, or through family/third parties.
Anthem is proceeding with its application to rezone the 6.28 acre Seymour Estates property in accordance with the District of North Vancouver’s Official Community Plan and in response to the District’s housing goals to “encourage and enable a diverse mix of housing type, tenure and affordability…” (OCP, 2011)
Having said that, it’s important to note that the Rent to Own program will proceed only upon District of North Vancouver Council approval of Anthem’s rezoning application to redevelop the Seymour Estates property.
For more information about Rent To Own
To learn more about how to register your interest for Anthem’s Rent to Own Program please fill out the form below.