Buying To House Hack Through A Corporation (Canada)?

Buying To House Hack Through A Corporation (Canada)?

Investor · Ontario · Member since 2016 · 14 posts · 5 votes

I am looking to buy my first property. I am new to the game and have a lot of research to do before I get there, but anyway...

I want to buy the property through my new corporation but I don't have a 20% down payment. But I could make 5% happen. I am not looking to quit my current job or anything else, I currently live alone rent free and would be able to take on payments myself with my income as I also have no debt whatsoever. This will be relatively low risk to an investor (and myself). I want to borrow through the corporation with a personal guarantee from myself to begin building credit for the corporation so I can grow my business in the future. Furthermore, If I'm not mistaken, by keeping the earnings within the corporation to reinvest I will also be saving on taxes until I pay myself. The big question is, can I somehow buy to 'house hack' (making the property my primary residence) through my corporation?

I would be looking for a residential duplex in this case.

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  • Roy N.Pro Member
    Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
    10y

    @Account Closed

    Your primary residence must be purchased in your own name to qualify to an insured high-ratio mortgage.  Additionally, there is no capital gains on your primary residence (if it is in your own name) - in the case of a duplex, triplex or quadriplex, no capital gains on the portion of the property which is your primary residence - so it really makes no sense to try and hold it in a corporation.

    Now, if you were purchasing a multiunit building - say 16-units - and were planning to live in one of the units, you might consider holding the property in a corporation and simply pay rent like any other tenant.

  • Investor · Ontario · Member since 2016 · 14 posts · 5 votes
    10y
    Roy, That makes sense. Thanks for the reply.
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