Canadian Corporate Structure - How to setup a corporation for B&H Rentals?

[Jesse Shields]

Hey All,

I've perused through the Canadian section and there doesn't seem to be a great deal of info on this topic. I'm looking for some information on how one can go about purchasing a rental home in Canada under a corporation (for liability purposes) while obtaining a conventional mortgage.

I guess we should go back to the basics: 

• Does it make sense to incorporate in Canada for holding rentals? My gut says yes, for liability issues etc.
• Is a corporation the type of company that makes the most sense? From my research, again yes, corporations have similar characteristics to the LLC in the states in terms of limited liability. There are also tax implications some of which are beneficial.
• Can you obtain a conventional mortgage through the company as I am sure they would want the personal guarantee of the person purchasing the home vs a shell corporation?
• If no, are there other ways around this? (purchase the home and then lease it to the corporation to rent out, or something like that?)

Hopefully I am asking the right questions, but I am looking for a bit of insight from those familiar with the Canadian mortgage and corporation laws. 

Thanks!

Jesse