All the extra time people have been spending at home has left many considering the benefits of an interior upgrade. Some people want to refresh their interiors with new furniture, replace old appliances, redesign their workspace with standing desks or better computer systems, and some want to improve their entertainment experience by getting a new system. There are all kinds of options available to get the things you need, with Easyhome being one of them.
What is Easyhome?
Easyhome has been in business since 1990 and has over 158 retail stores across Canada. Unlike a traditional retailer, Easyhome leases furniture, appliances and electronics so people don’t have to buy those products outright. Since Easyhome offers a lease-to-own service, you can eventually own the products once you have made all your payments or paid off your lease early. Once you set up your lease-to-own contract and take delivery of your products, your payments will begin as outlined in your lease contract.
The products you lease from Easyhome are not paid in full, so you will pay interest on them until they’re paid off. Many people don’t realize that Easyhome charges an interest rate of 29.90%, which is much higher than most credit cards and personal loans. Their target market is people who have a bad credit score or lack the funds for these purchases. So, what are the pros, what are the cons, and should you consider dealing with Easyhome?
Lease-to-own at Easyhome
Whatever you need, you will likely find it for lease at Easyhome; they carry electronics, computers, appliances and furniture. Easyhome offers a variety of choices in each category at various price points. Like most retailers, they often have sales that customers can take advantage of.
You can buy one item or furnish your whole home by shopping online, by phone, or visiting a store. Once you select your products, you can apply to lease the items. Customers find the process straightforward and fast. Easyhome will deliver your products within a short time of receiving your order.
How does Easyhome work?
Aside from getting all your shopping done in one location, the appeal of Easyhome is that you lease-to-own your purchases. This way, you avoid having to pay a large amount for new items. You can visit a store or shop online to choose what you want. Easyhome has both new and previously enjoyed merchandise available. Next, you fill out a lease application, and once approved, you arrange for delivery and set up. Easyhome states they approve 97% of their applicants. They promise a quick application process and a high rate of approval. As long as you have a source of income and a place to live, your approval is almost guaranteed. You will own what you leased when you have paid the amount owing in full by making all your lease payments or paying off the amount due early.
Each item has a weekly amount that you will need to pay until the end of the term. The payment advertised includes the price of the item, the interest charges, and their TPC. Taxes, the liability waiver, and the product performance provision are extra. The term is 156 weeks with an annual percentage rate (APR) of 29.9%. A $25 processing fee is not included in the advertised price, and delivery fees may apply. You can choose bi-weekly, semi-monthly or monthly payments as well.
Let’s look at an example of how much a 43-inch Samsung LED 4k UHD TV would cost by buying it outright, leasing-to-own at Easyhome, and buying it with a low-interest credit card and taking 12 months to pay it off. This TV has a retail price of approximately $549.99. The purchase price with 13% HST costs $621.49 ($549.99 x 1.13=$621.49.) You can lease this TV from Easyhome without the TPC for $13.66 per week for 156 weeks. HST of 13% and a $25 administration fee are extra. If you take the entire 156 weeks to pay if off it will cost you $2436.58 ($13.66 x 156=$2130.96, $2130.96+ $25=$2155.96, $2155.96 x 1.13=$2436.58.) If you use a low-interest credit card, you can put the whole $621.69 purchase price of the TV on your credit card as long as you have the available room. By paying $60 a month on a low-interest credit card with a 12.99% interest rate, you would pay it off in a year. Your total cost, including interest, would be $662.75. The TV from Easyhome will cost almost 4x more than buying it outright or putting it on a low interest-rate credit card.
As this example demonstrates, the cost of leasing a product from Easyhome is extremely expensive because of their high interest rate and multiple fees. In fact, Easyhome’s rates are higher than most loans and credit cards. If you don’t have a credit card with a low interest rate, there are a lot of options available that you can take a look at.
Easyhome Total Protection Coverage
The Total Protection Coverage (TPC) is included in the advertised lease price, but it's optional. With TPC, you get the option to upgrade any product at any time, free loaners if your product needs servicing or repairs, same day delivery and set up if possible, and a full warranty, which covers servicing and repairs of your products. The TPC also allows you to reinstate your lease if it has lapsed or been terminated. Without the TPC, you may have to pay for delivery and setup costs, pay for some repairs or servicing out of pocket, and you cannot return your products once they have been delivered to you.
Pros of Easyhome
Given its long and strong market presence, Easyhome has its share of customers. Some pros of dealing with Easyhome are:
No credit is needed for leasing
It's true. Easyhome doesn't check your credit. So, for people who have a poor credit history or no credit history, this can be a way for them to get the things they need. With no credit check, there is no impact on your credit score when you lease from Easyhome.
Does Easyhome report your payments? If you have no credit or poor credit, the payments that you make on your Easyhome lease are reported to Transunion and/or Equifax. Making your payments on time and as agreed, can help build or improve your credit rating.
Upgrade at any time
If you want to upgrade your purchases, you can do that at any time. This is a convenient feature because sometimes you get something and find that it’s not the best choice for you. If you owned it, you would have to live with it, sell it or find a way to get rid of it. You would also need to find the money to replace it. Easyhome allows you to upgrade your products for any reason. This way, you can easily get the right products for your lifestyle or simply refresh your look.
Return your products
You can return your products if you no longer need or want them without penalty with Easyhome's TPC. Easyhome offers no-hassle returns. Being able to return what you don’t need or want is a great option if your life changes or you simply want something different. As an example, if you lease products from Easyhome and need to move, you can return the products that you can’t take with you. This saves you the time and trouble of having to dispose of the items.
Free delivery and setup
Many retailers charge a fee to deliver and sometimes an additional fee to set up or install the products. Delivery and setup fees can be quite expensive and add extra costs to your bill. Additionally, other retailers can sometimes take days, a week, or even longer before delivering your items. Depending on what you need, this can be a real inconvenience. With Easyhome’s TPC, you can have the products you choose delivered to your home and set up on the same day you order them or within 24 hours. You don’t need to wait for days or weeks to get your new things.
Cons of using Easyhome
Easyhome is convenient for one-stop shopping, and the application process is simple, but it's not all rosy. Of course, you pay a premium for convenience. Additionally, there are other drawbacks to dealing with Easyhome:
- Cost of the product is not disclosed
- High interest rates
- Credit bureau reporting
- Extra fees
- A lot of personal information required
Cost of product not disclosed
Easyhome advertises a weekly price for the products based on their APR, TPC, and a 156-week amortization. Unfortunately, they don't tell you how much the actual product costs, partly because you can't purchase items from Easyhome outright. So unless you can find the identical item elsewhere, comparison shopping will be difficult.
High interest rates
Since Easyhome doesn't require a credit check to lease their products, they charge a high APR to compensate themselves for their potential risk. The high rate makes the total cost of the product very expensive. For example, if you lease a dining set for $19/week, your total price, if you take the full 156 weeks to pay it off, will be $2,694 plus tax. You might find the same or a similar set for much less elsewhere, and many major retailers offer special financing rates such as 0% for 24 months. Easyhome offers their customers the option of upgrading their products at any time. Some will consider this an advantage, but it can keep you in a cycle of payments for years at a high interest rate.
Two questions when considering rates are: is it affordable, and is it worth it? If it's not affordable you might have to sacrifice to make your lease payments or risk not being able to make your payments and ruining your credit rating. The added interest when leasing makes the product very expensive, which means you could pay far more than it's worth.
Credit bureau reporting
Easyhome states that leasing their products can help create or rebuild your credit because they report every payment to the credit bureau. They also state they are not a credit repair agency. If you are using their services, it's important to remember that all payments and non-payments are reported. If you miss payments, are late with your payments, or default on your payments, it will be reported to the credit bureau. A lease from Easyhome can reduce your credit score if you don't make your payments as agreed. If you are thinking of leasing products from Easyhome, you need to make sure you will be able to make your payments.
There is a $25 processing fee to lease their products and a delivery fee if you live farther than 50 km away from the store.
They want a lot of personal information
To be approved, you need to provide three references and the contact information of your employer and landlord.
How to apply for a lease
If you would like to apply to lease products or for a loan at Easyhome, you can apply online or in-store.
- Go to easyhome.ca.
- If you want to shop online, choose the “Products” link.
- Make your selections, choose your payment frequency, and click the “Check out.”
- Choose whether you are an existing customer and sign in or new to Easyhome and register.
Should you even consider Easyhome?
So, should you use Easyhome’s services? Well, it really depends on your situation. Easyhome’s market are customers with no credit, poor credit, or who don't have the money for furnishings, electronics or appliances. It is easy to qualify and they have a large selection of products both new and previously enjoyed. For people who have low credit scores, have a bankruptcy or can’t borrow from other institutions, Easyhome could be a way to get what they need.
Other options to consider instead of Easyhome if you need things are to save until you have enough cash, choose less expensive options, buy pre-owned, or check to see if you qualify for in-store promotions from major retailers. You can also apply for a loan or credit card with a low rate to see if you qualify.
If you decide to use their services, make sure you read the fine print to understand all the terms, conditions and fees. Do the math on the products you are leasing to see how much it will cost you over the life of the lease. And, check your finances to make sure you can afford the payments. It’s important to know that qualifying for a lease doesn’t mean the payments are affordable for you. If you miss your payments or default, your credit rating will decline substantially.
If you can’t make your payments, you should call Easyhome’s customer care to see if you can work out an arrangement. If not, your debt will eventually go to collections and debt collectors will contact you for payment. Late payments and non-payment will be reported to the credit bureau and negatively impact your credit rating.
They can call the police if there is criminal activity. Financial issues are usually handled by collections departments. In some cases, a lender can take legal action through the court system if the debt is large enough and the lender believes taking legal action will reduce their loss but this doesn’t involve the police.
It depends on the loan that you qualify for. If you can borrow money at a lower rate with more favourable conditions such as a lower rate, borrowing money elsewhere and buying products outright could save you money.
Yes. You can pay off your Easyhome lease early with no penalties. Once you pay off the lease, you will own the products.
Easyhome reports your lease payments to the credit bureau so your payment history with Easyhome will be on your credit report. This can work to your advantage if you make your payments regularly and on time or it can hurt your credit rating if you’re late with payments or default.
About The Author: Arthur Dubois
Passionate about personal finance and financial technology, Arthur Dubois is a writer and SEO specialist at Hardbacon. Since his arrival in Canada, he’s built his credit score from nothing.
Arthur invests in the stock market but doesn’t pay any fees because he uses National Bank Direct Brokerage online broker and Wealthsimple’s robo-advisor. He pays for his subscriptions online with his KOHO prepaid card, and uses his Tangerine credit card for most of his in-store purchases. When he buys bitcoins, it’s with the BitBuy online platform. Of course it goes without saying that he uses the Hardbacon app so that he can manage all of his finances from one convenient place.
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