Broker questions rent-to-own math in BC condo purchase plan
“A rent-to-own might work in a $400,000 property market where you’re renting and you’re putting a 5% downpayment. That would be $20,000,” he said. “You could build up a sizable equity to allow you to purchase that property.
“But it’s very difficult to do a rent-to-own for people at an $800,000 or $900,000 property, because they need to build up quite a lot more in downpayment. It would take far too many years of renting for it to work.”
Questions persist about how federal-provincial plan will unfold
For now, it remains unclear which units the program will target, or in which specific markets rent-to-own terms would actually apply. Further details are expected to emerge in the weeks ahead, possibly through a full breakdown of eligible regions and financing terms from BC Housing or Build Canada Homes directly.
Pinsky, though, said he’s skeptical that the program addresses the underlying tension between a market correction and outright intervention. “There’s too much of this plan that’s up in the air at this point,” he said. “So because it’s opaque, just the headlines make it worse.”
