Looking for anyone's advice and opinions on incorporating their real estate investment portfolio. I currently own 2 rental properties and because of this I'm finding it difficult to secure a loan for future rentals I'd like to purchase. Has anyone incorporated or looked into incorporating? Any advice or opinions on how incorporating may help in securing additional properties?
Rental Property Investor · Sudbury, Ontario · Member since 2017 · 11 posts · 3 votes
5y
What type of lender are you with? I switched from CIBC to a local credit union and found much greater flexibility (not as difficult transitioning from T4/W2 to self-employment income etc). That's about all I can offer from personal experience - but I am also curious if anyone else has input on incorporating!
London, Ontario · Member since 2018 · 104 posts · 38 votes
4y
From my perspective, having your properties in a corporation can limit who will actually provide a mortgage. If you are in commercial lending, it is no problem, but residential financing it can really limit the lenders. Some times on residential mortgages we have to go to alternative lenders to make the debt servicing numbers to work and if you want them in a corporation it usually comes with a premium in rate.