Newsflash: [Ontario, Canada] Rent to own? Not sure how to start

Hi all,My girlfriend and I currently rent a small (650 sq.ft), one bedroom house in Ontario. We have lived here for two years.My credit rating is good (780 last I checked), but I have debt from my ex-wife. I am paying it off and at the same time saving money for a down payment on a home and investing for retirement. I have a steady, full-time job that pays well. My girlfriend has good credit as well, but only works part-time. Together we draw $85,000 – $90,000 a year.My girlfriend’s father has a lot of health issues and has asked that we move in with him to help him do work around the house he can no longer do. He owns a 1500 sq.ft home on an acre of property in the country. I am okay with this, as he brought up renting to own the house. He would stay in the house with us (again, not a problem).I’m not too familiar with how rent to own works. My understanding is this (all #’s are examples):House is valued at $200,000 when we move in.Girlfriend’s father pays $500/month mortgage.We move in, pay $500 month to cover mortgage plus $200 extra ($700 total).Do this for 5 years (# based on me paying off all debts over 5 years, plus saving money)After time, we have now paid $42,000 ($30,000 rent, $12,000 extra) towards the home.This is where I get confused and have heard varying explanations. Some say that the $12,000 now becomes our down payment. The proof of payment to GF’s father allows us to secure mortgage for $200,000 home is worth when we move in, as the bank sees we have regularly been paying him for 5 years.Other explanations I’ve seen now say that all the money we’ve paid is taken off of the $200,000 house value. We now acquire a mortgage for $158,000 and buy the house off of him.Once we figure out the course of action, we will be visiting a lawyer (or real estate agent? Not sure) to have everything drafted up and made legal. We’re just unsure how it works as there aren’t many good explanations online I can find.Thank you!



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