I previously wrote: “One thing you have to be careful about is getting mortgage under your corporation. Some banks require much higher down-payments for corporation. As individual you may qualify for better terms.”

This statement simply refers to a difficulty of getting mortgage in the name of a corporation. Many investors incorporate and then find out that they cannot get a mortgage on the same terms as if they would apply personally. This is one of the reasons why many investors choose to purchase property under their own names.

The above clearly indicates a negative aspect of having a corporation. This is why you have to look at your ability to finance your purchases as individual and then as a corporation before you spend the money on incorporation.

Your understanding about the title is correct, the property must be in your name or in the corporate name. It almost never pays to transfer title due to the “Due on Sale” clause of most conventional mortgages plus land transfer taxes and other expenses.

One important note is that if you have a mortgage that allows you to transfer title, you can do so if you see a benefit. Your corporation will own the asset, pay bills and receive rents, you will be responsible for the mortgage. It may be useful for some strategies, but it is not for everyone. One example is sharing profits. If you own a rental property, you have to declare the profits yourself (unless you have a co-owner). If you own a corporation which in turn owns a rental property you can issue shares to your family members and split the dividends. You can easily issue shares without triggering major expenses whereas changing a
co-owner is a big deal.

Disclaimer: As always I do not offer any advice, I am just sharing basic information. Readers must seek professional advice before implementing any strategies.

Thanks,
Peter