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RENT TO OWN

• Stella Ram • Season 1 • Episode 16

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In a market where headlines scream unaffordability and families feel locked out of ownership… there's a hidden door many don’t talk about: Rent-to-Own.

In this must-hear episode, we sit down with Rachel Oliver — a true industry trailblazer — to unpack the real story behind rent-to-own in Ontario’s 2025 housing crisis. From its misunderstood past to its explosive relevance today, we break down what rent-to-own really means, who it’s for, and how it might just be the most powerful path to homeownership you haven’t considered yet.

💡 Whether you're a first-time buyer, investor, or simply curious — this conversation will change the way you see real estate.

🎧 What We Cover:
✅ How rent-to-own evolved — and why it’s booming now
✅ The step-by-step of how these agreements really work (no fluff)
✅ The hidden wins and watch-outs buyers MUST know
✅ Who is benefiting from rent-to-own in 2025 (you might be surprised)
✅ Why politicians, developers & tech could shape the future of this model

🗣 Let’s Talk About It:
👉 Have YOU or someone you know considered a rent-to-own option?
👉 What’s stopping more people from choosing this path?
Drop your thoughts in the comments — we might feature your story in a future episode!

🚀 SHARE THIS EPISODE if you believe everyone deserves access to the dream of homeownership.
👆 And don’t forget to tap Subscribe for more real estate truths, bold conversations, and future-forward strategies every week on Talks How.

—
#TalksHowPodcast #RentToOwnExplained #HousingCrisis2025 #OntarioRealEstate #RachelOliver #RealEstatePodcast #HomeownershipDream #RentToOwnCanada #AffordabilityCrisis #SmartInvesting #FirstTimeBuyerTips #RealEstateEducation #RealTalkRealEstate #WealthBuilding #ViralPodcast #TrendingReels #HousingSolutions #FinancialFreedom #PropertyOwnership #REICommunity

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[Music] so in this evolution of rent to own like what is happening right now in 2025 when it comes to rent to own I think a lot of people hear the word rent and they get sidetracked by it This could be a breakthrough for them as well The reality is a lot of people are going to get outpriced Exploring options like rent to own uh will be an ideal solution in those situations That's 42,000 you literally are taking out of your pocket and handing it to your landlord and saying "Bye Enjoy my money." What if I told you that owning a home in Canada without a mortgage approval isn't just possible it's already happening for thousands of families in a market where banks are saying no and affordability is at an all-time low Rent to own isn't just a backup plan It's a breakthrough But how does it really work Who is it for And is it too good to be true Today on Stellar Talk Show we are lifting the lid on one of the most misunderstood and lifechanging real estate paths out there Joining me is Rachel Oliver co-founder of Clover Properties award-winning entrepreneur and Canada's leading voice in rent to own real estate With nearly 1,000 families help and 15 plus years in the game she's here to break it all down No fluff just facts Tag someone who's tired of renting Share this in your stories and let's talk about real solutions because the dream of home ownership isn't dead it's just evolving Hi Rachel welcome to the show Thank you for having me Stella Yeah you know it's amazing to have you We were talking a lot about rent to own Um so tell me like how it all started Oh gosh Rent to own I mean if you dated back to the beginning I could say it would it was something that started back in the 70s where uh mostly in the states uh people couldn't afford to buy a home or they couldn't qualify or a landlord was trying to get rid of a property but couldn't get the price for it So they'd approach the tenants and say "Hey rent to own my house." And then they would come up with some agreement on the back of a napkin And when those types of agreements come up they're well-intentioned in some cases but because they're not detailed and there's no structure Um a lot of those rent to own deals didn't come to fruition And if they did it was probably a miracle However the the intent behind it um was very sound even back in the 70s and that's to help a home buyer who doesn't fit the the bank criteria and needs a little bit of time to to do so So that kind of the runway is the rent own process to help them become mortgage ready to meet and satisfy the requirements of the banks So this has been going on back since the 70s Oh wow that's amazing And so like when you when you talk about you know getting them ready what does that really mean Uh Rachel what are you you know influ influencing there with rent to own Um specifically what we're doing is we're addressing the challenges that are stopping somebody from getting a mortgage with the bank ideally a mortgage with the bank And lately as we've seen the bank's criteria um is getting more and more and more strict because the banks are more and more risk averse They want to make sure that the people that get into home ownership are going to keep up with their payments They want to make sure that those people are going to um essentially be a customer for the next 25 years because that's the length of an amortization term Amortization for a bank is lifetime value of a client So they want to be sure that they're bringing somebody who can stay there in that home or in a home ownership context for 25 years And that means they need to have sound income They need to have sound financial management habits They need to have low debt and manage their debt well and ultimately in in jobs and and uh businesses that will continue to grow uh and contribute to a higher income So that's what the banks are looking for But we know life is expensive Life is challenging And sometimes people don't fit the mold But their personal circumstances require them to move out of a rental situation and create stability for their family And that's where rent to own comes in They need stability They want a home The bank is saying no Today well then rent to own could be the path Path Amazing So like you know so from 1970s to now it has I probably believe it has evolved a lot from as you've mentioned from bag of a napkin to like a proper contract now Um you know it's a huge journey that I would you know imagine So tell me your you know you've been in the industry for like over 15 years now So what has your journey been like M so 15 years ago the main difference was is that we were dealing with property prices in 150 160 price point So we were helping families get into homes that back then they couldn't qualify with the banks So that is the constant People are going to have constant challenges Either it's a health setback or it's a a personal setback such as divorce or maybe uh a business bankruptcy There's always circumstances in people's lives that um you know come up and challenge them financially and sometimes debt piles up and credit takes a hit Yes And that's okay That has been the constant I think that dates back to you know the 50s and uh and and probably even earlier than that But the the main difference is is that getting into home ownership has become more expensive So now instead of helping people rent own homes that are $150,000 on the market or $180,000 on the market we're dealing with $600,000,700 $800,000 properties And what that means is that the applicants who are trying to get into the program have to jump through even more hoops than they did before Yes Yes Because the numbers are bigger now You're right Yeah that's understandable So um so in this evolution of rent to own like what is happening right now in 2025 with all what we have seen in the past with the interest rate um you know the stress on mortgages like do you see not only first-time home buyers by by but returning buyers coming back into rent to own at this time So we talk to a lot of people throughout the year We usually get about 5,000 applicants for our rental own program And I wish I wish we could help everyone but we're very selective in who we accept into the program And we have seen people that we talked to 12 months ago 18 months ago who were on the fence who thought that well you know the housing prices are going to drop by 100,000 150,000 so they're going to sit and wait And of course that's their choice Now they're coming back into the fold and coming back into the conversation And ironically houses did not drop by 100,000 In some cases they maybe dropped by 20 $30,000 but because the interest rates are higher now some of them are outpriced because it's a combination of not just what the purchase price of the home is it's also what the monthly payment is going to be Yes And I see this a lot People say "Okay I want a $700,000 home because I can't find what what my heart wants for a $600,000 home Give me a $700,000 budget." Absolutely no problem And in some cases it's warranted If people don't have a lot of debt we can boost their budget a little bit Yeah But then we show them what the monthly payments will be on that $700,000 property and they're like "Well no I want to pay for it like it was a $600,000 property." It's kind of like going to uh you know a Tesla dealership and buying their you know top-of-the-line Tesla and saying um I want that luxury Tesla but I want to pay Toyota prices for it each month Can you make that happen Yeah And of course that's unrealistic And that's I think where where the the disappointment is Whereas when they originally approached us they could have gotten what they wanted for the $600,000 price tag now what they want costs $700,000 And because interest rates are probably going to stay steady in you know in the 5% range if if we're dealing with the banks um the the price for that $700,000 home is going to be higher today than a $600,000 home a year ago That's true That's true Um that I think that's one of the struggles that we have to overcome when we are looking into like you know purchasing or into a rent to own position at this time So tell me uh Rachel so in your um viewpoints with your experience all this time in today's market who's an ideal client that who can benefit from rent to own So the ideal person is someone who has a great income Incomes are key because that is going to allow them to keep up with the monthly payments on the property that they want and it allows them to manage uh debt and pay it down because a lot of people that need the rent process have some debt and that that debt is stopping the bank from saying yes we'll take a chance on you You need to basically bring down that debt before the bank will say yeah you're a great candidate for our mortgage products So the rent to own platform is essentially a structure and a a very specific timeline to shrink that debt So they have to have the income to support the monthly payments enjoy life and whittle down some of that debt So that's part one And then the other part of it I would say is the the down payment Um a lot of people talk about you know 5% you can qualify for a mortgage with 5% and the banks just uh the policies just changed and 5% now buys you you know up to a million a million and a half I believe and that's great but when people talk about 5% I think it's misleading because it's ambiguous 5% of what 5% of a $500,000 home in rent to own is $25,000 5% of a $700,000 home is $35,000 that's a $10,000 swing So when people talk about saving for a down payment ideally they should be thinking about how much money have we saved for rental own So the idea the ideal candidate is someone with high income and someone who has 25 35 45,000 saved for a down payment And the good news is that they don't need to worry about closing costs Yes So that gets them into the market faster as well cuz closing costs in some areas can be 8 9 10 12,000 Yeah 1 to 2% of the property value right Depending where you're buying Most definitely So so just to understand the module around the rent to own Um so as you just mentioned like the important part is the income The income has to be sufficient to cover the monthly payments The down payment you can enter it with the minimum down payment and there is no closing cost Apart from the income what else u is there any anything else that you need to have to qualify to come into the rent to own uh um path I would say probably above all else besides the income besides the down payment is the mindset and determination Mhm Nothing is handed on a silver platter uh at least nothing that's worth really having And I find that a lot of people um underestimate the amount of commitment it does take not just to get in getting in You know I often say you know almost any monkey can help someone get into a rental home process but it's sustaining it and succeeding as a result of it That's where the real effort is And if you don't have the mindset if you don't have a strong why why is home ownership important to you and your family at this time And why is it important to you 5 years from now If you're not clear on that it doesn't matter whether you're renting to own it doesn't matter if you get a private mortgage doesn't matter if you even get a bank mortgage you are behind the eightball So mindset is number one No that's absolutely right And you know planning with the strategy right And sticking to it That's very important the the consistency of the plan you know being on top of that you know making sure that you're able to carry that cost for the the length of time that you're going to be on uh rent to own is very important as well So um tell me like based on what you have seen with the families that you have worked uh in the past 15 years uh Rachel you know I pro you mentioned it's over 1,000 families So how have their journeys been What's the feedback that you're receiving Oh goodness I I think the feedback can be summed up in that it's life-changing and gamechanging and you know you go it makes us feel like you know we go from zero to hero but really the people are doing the work We're just creating a container in guidance and they're they're following the guidance and they're taking action Um I was just recently talking to someone who completed our program 11 years ago Wow And um what she said was at the beginning she had gone through a bankruptcy after a health setback and they couldn't even rent an apartment because landlords are very picky as well Just like the banks everyone looks at your credit And if you have a bad credit history you can get denied by the landlords as well And that was her situation And she had two young children at the time and she wanted to be in an area where there's great schools but landlords wouldn't rent to her So she approached us uh about Rent to Own and to be honest um they are the most delightful family very hardwork great income Her husband worked in the HVAC industry Um she was actually just starting out her real estate career as an agent and um they were making decent money and what we saw in her was determination and commitment to her own family's future and we took her into the program and uh she took ownership of her home in 2020 And after she took ownership of her home they went on to buy two investment properties That's amazing And a home for her mom and dad who live a couple of blocks away So they help out with the kids That's amazing That's definitely a stepping stone into a bigger path in your in your future right That's a great success story that you shared with us Thank you so much for doing that Rachel But in the meantime can you tell me like you know in today's um 2025 like you know when we are talking about rent to own and the cost of carrying it how how is that calculated Uh can you just break it down for us a little bit so we can understand where this number's coming from When it comes to rent to own I think a lot of people hear the word rent and they get um sidetracked by it They're thinking "Oh well I'm renting for $2,500 So that $2,500 allows me to uh own a $700,000 home three or four years later." And I wish it worked that way I really wish But really rent to own is closer to how mortgages work because we're departing the rental game And how rent works is not how rent to own works Rent to own is closer to the to to the mortgage side of the equation because that's the goal The goal is to get you onto the bridge away from renting and into owning So understanding that the monthly payments are going to be closer to what a typical ownership scenario looks like numbers wise is really really key and that's um really a function of understanding how mortgages work because that's where we're headed So the monthly payments are very similar to what a monthly mortgage would be including so on top of that of course as an owner we have to pay property taxes we have to pay property insurance So when you factor in you know what's the mortgage property taxes property insurance that encompasses the monthly payment Just like if you were to walk into a bank with 5% down your closing cost and the bank approves you that's what your monthly payment will be Yeah But our program is a little bit different And it's special in the way that when you're in a rent to own scenario with us a portion of your monthly payment goes back to the rent to owner okay As a saving as a savings to help them increase that initial down payment that they came in with So if they had $30,000 to start with through these monthly credits or monthly kickbacks or you can call them rebates whatever you know they're getting a piece of that back They more than double their original 30,000 And fast forward three years or four years they're exiting the rent own process with much more substantial savings for a down payment a property that they've lived in and had peace of mind in and treated as their own For 3 or 4 years and in that timeline they've paid down their debt They've improved their credit situation And now the banks are like "Pick me I'll I'll do a mortgage I'll give you financing." And that's really um what what we're doing So the monthly payment is very reflective of what it would cost for them if they were to get a mortgage today directly with the the minimum down payment Okay that's that's very clear Thank you very much So um so in in other words like when you're explaining this what's what what was running in my mind was anybody who needs that discipline in saving for a bigger down payment for the future this could be a breakthrough for them as well because now you have that kickback or the whatever that what you want to call it saving going back into your down payment boosting that for when you're ready to take it on your own in the future So those terms that you have like is it starting from 12 months and it's is or up to four 5 years or what what are the terms looks like Great question So the terms that we work with are either 36 months or 48 months Okay Um it's quite simple It takes about 3 years for someone to be able to keep up with the the payments on their debt and the payments on their property When we first started out doing rental owns we did offer 12-month terms We did offer 24-month terms but as the price points of real estate increased the monthly payments go up higher Yeah And when people have to manage debt and higher monthly payments and cost of living you know transportation gas daycare you add all of that up and your monthly cost of living is much higher M so to to help people save up that extra $30,000 down payment in a shorter amount of time is harder So the months are now 36 months and 48 months still under 5 years to get into um the actual ownership position But the day that you move in the home is yours and you have that peace of mind and from your first monthly payment you're building equity in it That that monthly kickback is your equity the same as if it would be if you got a bank mortgage Yes No that's absolutely amazing So you know I I clearly see like you know why it has been an great option for thousands of families in Canada uh to break into the home ownership on an early space until they they are ready to take it over on themselves That's amazing Um so tell me like you know when we are thinking about the next what's next for rent to own um what are your thought process there What do you see for the future the next 5 years M well I think that a lot of people who are thinking about home ownership are all impacted by the the circumstances around inventory Um there is big demand from entry- level buyers and unfortunately we're not building any more entry level properties The cost of construction has increased We've got tariffs in the mix We have um higher costs of land So the developers are now redirecting their energy A lot of developers are building purpose-built apartments That's true And they're getting government funding and subsidies to do so So those policies in the government right now are impacting how first-time home buyers are going to fare out in the next 5 years because there's just not enough inventory But the demand from first-time home buyers is always going to be constant It always has been For me that's what I've observed in the last 15 years First-time home buyers represent the biggest chunk of the buyer market That's true And they're going after those entry- level homes And entry- level homes in Ontario are continuously shifting You know 15 years ago they were 150,000 to 220,000 220,000 was a luxury home in Barry Um now you know entry- level homes are anywhere from 500,000 to 650,000 And then we have an upper tier of 650 to about 850 Mhm But there's not enough construction And we've all seen that most people don't want to live in a condo So people prefer the town homes People prefer the detached I mean everyone wants to live in a detached So that um you can still find it but you probably have to go further out Yeah But if you wait too long that's going to go up as well It's going to go up as well And then when it goes up and your income doesn't go up as rapidly your savings don't go up as rapidly because the 5% for an $800,000 home is different than the 5% for a $600,000 home So as as we're not building more what's there is going to go up in value And the reality is a lot of people are going to get outpriced Rentone can't fix for that Private mortgages can't fix for that Yes Um alternative lenders can't fix for that That's the one part that I wish I had a magic wand and I I could fix for Um but I I do see that there's still hope Um I do think that everything is cyclical and if you're not able to get into the market in the next 2 3 years whether it's through a bank through a rental own process through you know private financing um I think your next opportunity will come up 5 6 7 years from now where I think we we might resume construction for entry level buyers but the square footage is going to be much smaller No I know we already see that happening right Yeah most definitely So you know what I'm hearing from you is the earlier that you can enter the better because in as you mentioned there's not not much construction going on right now at this time Um and if if it's going to take time and you're going to be renting all those years until that time comes might as well start you know building something yourself like you know exploring options like rent to own uh will be an ideal solution in those situations right Yeah Ex Exactly Instead of wasting time renting and wasting money more importantly there's other ways to get into the market And a portion of your monthly payment in rent own goes back into your pocket versus if you're renting all of it goes to building your landlord's wealth and your and your landlord's equity And a lot of people don't realize how much that adds up to On average we see people spending anywhere from 36,000 a year to $42,000 a year on rent That's 42,000 you literally are taking out of your pocket and handing it to your landlord and saying "Bye." Yeah Enjoy my money Yes And that's not building their own future for their own family And that's the part that I think people don't want to wake up to And if I could leave anyone with any type of advice who's in that kind of you know when's a good time to buy Well when is a good time to pay your landlord $40,000 a year And that's just year one Think about it If you wait to stay out of the um real estate market for the next 3 years 40,000 times three simple math Yeah $120,000 to the landlord Mhm Yeah We're just making the landlords much more richer than they want to be And I don't have anything against landlords Believe me I I understand those dynamics as well Um and not everyone is cut out to own It doesn't suit everyone's lifestyle It doesn't suit everyone's finances So landlords definitely have a place but this is it goes back to your earlier question about what's that you know what's that criteria the mindset if you're of the mindset that you want to have stability you want to have control of your financial future don't think about it a minute longer and if you can't qualify with the banks today go the rent to own route that's true that's true so like you know what's important is like you know I think end of the day everybody is working so hard to build a life to have stability to come back to a place to call home where they which is affordable where they you feel secure and you know you see your family is growing into right so that's very important so having if if if you're someone out there if you're renting and if you hate the fact that your homeowner is coming and knocking on your door for rental payments or like you know having these you know restrictions on you or like you know having the uh cons consistent thought of you know having to move from place to place changing schools for your kids they know leaving behind precious memories then this is definitely an avenue for you to check out because this will give the foundation for you to start now to to build a better future for tomorrow for yourself and also for your family Rich I want to ask you a couple of questions based on the conversations that I'm having with uh people when I'm talking to them as a realtor So some of the questions are like still are like how does this work if you know based on um different different family situations and personal situations Um so if somebody is um has been an homeowner before for some reason now they are not and they're back to renting are they able to enter this program as well Yeah absolutely So we often talk about first-time home buyers and that's the you know that's the majority of the people that we work with because they just represent the bigger chunk of the market But what we're seeing more and more of is um previous owners who had to downsize Mhm At the end of the day personal setbacks can get the best of us And debt is you know that unnecessary evil that comes with a personal setback And when you're a homeowner one of the easiest ways to get rid of that debt It's not to file for a consumer proposal or a bankruptcy because those are so hard to bounce back from creditwise Yeah it clears your debt but your credit is injured for seven years When you're a homeowner and you have equity in your home and mortgage payown you can use that to quickly extinguish the the burning debt that that is eating you up because you know um the the collection agencies calling that's stressful Uh the bills coming in saying pass due overdue Um and then when you apply for a a measly uh you know Walmart card and you get declined you know all of that is a massive stressor So people who own homes their quick fix is to sell out the house clear the debt and often times they think they just have to rent and start from scratch while they're renting But this is where the rent to own path can actually help them rebound faster Yes So instead of downsizing and going to renting down to a rent to own So you still have the stability from day one still get money back in your pocket with every single monthly payment like you did when you were building equity as a homeowner And you are going to be able to uh recuperate from this financial setback much faster because behind the scenes we have a team of experts that is dedicated to helping people exactly like that bounce back from whatever caused them to have those issues in the first place That's amazing We don't know everything about money I I know sometimes I need to talk to experts about certain aspects of uh debt management credit management I've been there myself Um so talking to experts who have their hand on the pulse um it sometimes can be intimidating But once you get over that hurdle and you're like "Oh my god the amount of information that's saving me time saving me stress it can be a game changer." So yes we help a lot of downsizers Yeah it may not be the cup of tea for everybody but the people who actually need that extra boost and the time to restructure themselves rebuild them uh themselves definitely an avenue to explore And also Rachel thank you very much for bringing this book for me today I really appreciate that A signed copy from uh Rachel Oliver So this um rent to own essential guide for home buyers What is this book all about You know what are the benefits of this and why should people out there should be reading this So we wrote this book um I would say about 10 years ago when we realized that there's a lot of misinformation and miseducation around the topic of rent to own So we decided to hit pen to paper and provide the good the bad and the ugly on what rent to own is and what it isn't And um this book is available on Amazon.ca It has helped a lot of people understand if Renone is the right path for them because obviously we can't get into all the nitty-gritty in this conversation But if someone is interested in getting a copy of it um we make it available on our website They can grab a free ebook at stoprentingtoday.ca That's amazing And we're going to leave that link in our comments and in the bio below as well And it's a Amazon bestseller Wow that's amazing Rachel That's a big achievement there So please try you know check this out and you know let us know if you have any questions or if you want to continue the conversation Rachel's contact information will be also there as well Um Risha thank you very much for exploring this uh subject with me um and sharing the success story It has been really really wonderful having you on the talk show We're going to leave your information on the comments below so you know the people can reach out to you directly as well if they have any questions But thank you very much for coming in and sharing rent to own strategies and what benefits that has for all the audience who's looking listening to us today What an eyeopening conversation with Rachel Oliver From breaking down how rent to own works to the real families is helping across Ontario This episode proves one thing loud and clear Owning a home in 2025 may not look like it used to be And that's exactly why more people need to hear this Now it's your turn Let's keep the conversation going Do you think rent to own could help close the home ownership gap that we experiencing now Or would you consider it for yourself or someone you love Have a story or an opinion Drop it in the comments or DM us Tag a friend who's renting and feeling stuck Share this episode to your story and text it to someone who's ready to build a future but doesn't know where to start And don't forget subscribe so you never miss the conversations that matter most in real estate finance and life Because this show is not just about buying homes It's about building legacies This is inspiring lives where real talk leads to real change Until next time stay bold stay informed and keep moving towards the life you deserve Thank you for spending your time with us on the Stellar Talk Show We hope you found value in today's episode and gained insights to help elevate your lifestyle If you enjoyed the discussion please like subscribe and share it with anyone who could benefit It means the world to us Until our next episode stay inspired and I'll see you soon on our next Stellar Talk Show