Mortgagenomics Canada

The following is discussed in this episode:Purchasing a property inside of a corporation: OPERATING COMPANY or HOLDING COMPANY?*this a decision you will want to discuss with your accountant as there are reasons to do so in both cases. However, as far as mortgages are concerned most lenders require that the property be held in a holding company. There are a select few that allow one to do so in an operating company, but the interest rates are typically higher. I have reached out to lenders and asked why this is the case…they mostly replied that the exit strategy of the property could become difficult or problematic in the event the corporation (the operating company) is sold, or confronted with some type of creditor challenge, thereby coupling the property with the corporations resulting outcome*when it comes to mortgages, not all lenders allow for purchasing within a corporation…but enough of them do. It is important to disclose your intent