All Forum Posts by: Brandon P.

I wouldn’t recommend it for 1 home. You could just open a personal account and credit card with a different bank, as long as you track the expenses and keep proper records, it’s all deductible but check with your accountant to make sure you are on side.

In Canada, you can deduct whatever portion of the house you rent out, so if you rent out 4/5 of the room, you can basically  deduct 80% of the expenses.

Again the tax legislation varies depending on your region so talk to an accountant or read up on the tax laws in your area.

Make sure you rent the rooms out to people that are going to get along well with you and the other people in the house.

Work with a lawyer to get a solid lease agreement done up in case you have issues with tenants and need to boot someone out.

Create a set of “house rules” and get them to agree to them before they move in and include common courtesy things like minimal noise after 10pm, no parties, etc. It helps make your expectations clear and will keep your neighbours happy if they abide by the rules.

 They have provided 5 year tax exemptions here for years, it’s not a huge amount of money but helps spur new construction. I wouldn’t be surprised if some cities started doing 10 year exemptions.

As far as interest costs and the cost of construction goes- the majority of “homes” built will be apartment buildings by developers, funded through cmhc.

This has already been going on for years but now developers are going to be able to build these on greenspace that was considered in developable previously due to zoning, ie, old school yards, large undeveloped lots in residential areas, large schools yards with excess space, etc.

The federal government in Canada has rolled out a program called the Housing Accelerator Fund to most larger cities across the country. While the fund was announced in 2021, the first city to be approved for funding was London, Ontario in September 2023. Over the past two months, many other cities have been approved for funding, primarily in Ontario.

The program provides cities with millions of dollars in funding in exchange for zoning bylaw amendments. The intent of the bylaw amendments is to increase density in existing neighborhoods and reduce red tape for developers. For the cities that have implemented the amendments, this has resulted in changes where neighborhoods that were only zoned for single-family homes can now have fourplexes or townhomes built, and it is significantly reducing red tape around the parameters of where larger multi-family buildings can be developed.

While the changes will provide ample opportunities for developers, existing residents in the neighborhoods may bear the burden of the ongoing construction and increasing population once the units are built and rented out. Apartments will be built on greenspace that was recently undevelopable, and older homes will be demolished and replaced by fourplexes and townhomes.

The Housing Accelerator Fund is a promising initiative that aims to increase housing supply for investors. It will absolutely re-shape most major Canadian cities and will permanently alter the neighborhoods that have been untouched for decades.

Regina City Council Bylaw Amendments

You would need to obtain a  conventional mortgage in the transaction and pay out any loans registered on the property, similar to what a 3rd party buyer would do if you were selling to them.

From what I understand, most lenders will require a personal guarantee from you when you obtain lending on a residential property like a house or condo.

Most lenders do not offer HELOC products on rental properties & the LTV ratios for the mortgages are max 75% depending on your financial and rental income situation.

It wouldn’t hurt to ask for the monthly reports or accounting information that the PM provides to the owner. 

This would give you insight into the additional building costs and potential recent issues in the building, for example, pest control, tenants paying rent late or in arrears.

Good luck with your purchase!

The Canadian legislation considers rental income passive income, and in most cases it is subject to the highest corporate tax rate.

That being said, it can take several years to have taxable net income when you purchase real estate.

There is lots of information online about this, it just takes a bit of digging to find it. The link below has more information about the corporate tax rates in Canada.

https://www.canada.ca/en/reven...