Licence to Occupy (LTO)
A Licence to Occupy agreement is issued to a customer when the customer is assessed and deemed to qualify for a mortgage for a property on a site that has not been vested in the HDC. For a site to be vested, the HDC must have full title to the property. An LTO agreement does not give the customer title (ownership) to the property. Once the site has been vested the HDC will approach the customer to convert to mortgage.
Rent to Own (RTO)
A Rent to Own agreement is issued to a customer when the customer is assessed and deemed to qualify up to $100,000 less than the purchase price of the property. The customer is then issued an agreement which entitles them to rent the property for 5 years in the first instance. The customer is then re-assessed at the end of the 5 years and once the circumstances change, the customer is recommended to convert to mortgage.