Banky team Reviewed editorial answerThis is a financing arrangement where the bank owns the asset and leases it to you for a fee, with a separate arrangement or agreed-upon mechanism for eventual ownership transfer.
Key points
A key difference from purchasing the asset in installments is that ownership during the lease period affects responsibilities, maintenance, and risks.
Before signing a lease agreement for a property or car, understand exactly when you will own the asset and who is responsible for each type of expense during the lease term.
The figures, fees and limits in this answer vary by bank and change over time — confirm them with your bank or the official source before acting.