Buying Property Through an Ontario Incorporated Company

[Agnes Chlebowski]

My husband and I are really struggling to devise a plan to purchase investment properties through a corporation.

We have the corporate formed and funded through an intercompany loan ( I own a small business that does well).

We had a semi successful large scale renovation through this company (we purchased a bad property, renovations went sideways and then the market stalled with the stress tests on mortgages - Yikes). We broke even after all was said and done. Phew!

However, we are still hot on the idea of purchasing properties through the corporation. Tax benefits and long term portfolio.

Our mortgage broker and lawyer say that we are on the hook for 20% down on the next investment property we purchase through the corporation. 

This is a huge chunk of capital, and as you know Ontario housing market is high right now. My husband and I did and airbnb rental on the last property we sold and manage the properties ourselves with cleaners etc. Last year we net approx $15,000 from the property but figured we can do better since we learned we had lower daily rental rates then airbnb's around us.

How do we circumvent the 20% down payment? When we originally did this, it was through a B lender with high rates and we refinanced after 1 year. Is there any other way that is easier?

We don't want to be down the capital incase the market starts to come down, we want cash in hand to pick up great deals if we see any.

Thoughts on how to get this moving?

If we can't find an answer to owning a property through the corporation, we are willing to do it through our personal names and pay income tax as a last resort.

Again...any helps is appreciated. There are so many rules and regulations it makes your head spin.

Thank you,

-Agnes