Rent To Buy Mortgage Loans

What a rent to buy agreement means.

In Australia,  Investors are using an agreement to increase their cash flow and help blacklisted home buyers get into a property. they do this by buying a house, then writing a second mortgage to the tenant under a "rent to buy" agreement.

The investor gets more cash flow as the repayments and terms are slightly higher than the standard bank rates and the tenant get a loan without having to conform to the banks requirements to get a normal property loan. They could have had credit defaults previously so this is possibly one of their last options for home ownership
Its a precarious position to be in so lots of due diligence is well needed for both parties. Being in a home with taking a mortgage from a  standard bank has it advantages though.

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