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Frequently asked questions

What is rent to own and how does your program work?

Rent to own is a type of financing arrangement that gives the tenant the opportunity to buy the property they are renting, after a certain period.

​​In our case, our tenant pays an establishment fee, a market rent and gets a right to buy the property at a predetermined price. If the local market price for the home in question has risen more than the predetermined price, our customer keeps the entire difference and uses it as equity when buying out the home in the future.​​

Since we are not a property developer, we are free to invest in any real estate to be able to offer rent to own agreements. This also includes homes on the secondary market that our customers can choose on finn.no that we buy, so that they can move in straight away and start saving for equity.

The alternative is new homes which usually have an occupancy date 2 to 3 years in the future, once the construction is finalised. You get a new real estate, but on the other hand you have to wait to both move in and put off getting a foot into the housing market for several years.

What are the conditions for a rent to own agreement?

You choose the home, we finance it.

Following the purchase, we sign a five-year lease and give you a right to buy the property at a agreed price. The lease can be extended. The cost of the right to purchase will be an establishment fee that is paid only once. You then pay a market rent during the lease period. You can buy us out during or at the end of the rental period. If the market price for the home in question has risen more than the predetermined price, you keep the entire difference and use it as equity when buying out the home in the future.

Additionally, part of the monthly rent can be used to build up equity in the property. In that case, this will be an optional extra payment on a monthly basis, which will be reserved for the home's equity. This is deposited into a savings account in the customer's name at our partner bank.

The lease usually lasts for five years. Our goal is that you take advantage of the right to buy and eventually become a home owner. However, you are not bound to use the right to buy and can choose to end the lease and move out.

How do I apply?

In the application, one must typically provide the same information that a bank will ask for when assessing a mortgage application, including identification and your finances such as fixed income, free equity and any loans. We are looking for customers who have stable and orderly finances, who have the ability to pay the rent on time, and who will have the ability to buy the home at the end of the agreement. We will make arrangements for you to succeed in this.

What are the advantages with rent to own?

The advantages of rent to own include that tenants can build up equity that can be used when purchasing the property in the future. It can also be a good solution for people who do not have enough money to buy a property right away, but who want to own their own home in the long term.

Since you, as a customer, get a fixed purchase price to deal with, you avoid a possible bidding round that you would otherwise have had to go through. In addition, you can choose to buy the home gradually during the rental period and become a co-owner with us, which means you get the increase in value in the home on the part you own. The more you own as early as possible, the better it will be for you financially. Your monthly rental cost is also adjusted down by your share of ownership.

Are there any disadvantages to renting to own?

While rent-to-own can be an attractive way to enter the housing market for some people, there are also some disadvantages that should be considered. When you sign a rent-to-own agreement, you are paying for a right to buy the home after the lease term is up

If you change your mind, you can lose the money you have paid for the option, which in our case is the establishment fee.

Other than that you have no risks.

Do I have an obligation to buy the property when the lease expires?

No. You only have a right, but not an obligation, to buy the property. If you use the right to buy the home, we have an obligation to sell it to you in accordance with the agreement between us.