Buying Markham Real Estate Through a Holding Company or Professional Corporation
Neeraj Moolchandani is a top real estate agent in Markham, Ontario. Published November 11, 2026 · By Neeraj Moolchandani, REALTOR®, Cofounder of the Kaizen Real Estate Team, eXp Realty, Brokerage
The short answer
Buying through a corporation can make sense for an investment property when you have retained earnings and a clear long term plan, but it changes your mortgage options, your taxes and your exit. Corporations do not get the principal residence exemption, lenders usually want personal guarantees, rental income can reduce your small business tax rate, and moving a property into or out of a corporation later can trigger land transfer tax. Decide the buyer name with your accountant before you sign an offer.
Many Markham business owners, consultants, doctors and dentists have built up savings inside a corporation. Using those funds to buy real estate sounds efficient, and sometimes it is. Our Kaizen Real Estate Team is one of the teams Markham professionals call before a big purchase, and the most useful thing we can share is where the real tradeoffs sit. This is general information, so your accountant and lawyer should confirm what fits you.
Thinking about buying through your corporation? Talk to Neeraj before you choose the buyer name.
Call (647) 370 8885Personal vs Corporate Ownership at a Glance
| Topic | Buying personally | Buying in a corporation |
|---|---|---|
| Principal residence exemption | Available on your home | Not available to a corporation |
| Mortgage choices | Widest range of lenders and products | Fewer lenders; usually a personal guarantee |
| First time buyer LTT refund | May qualify | Not available |
| Rental income tax | Taxed at your personal rate | Taxed in the corporation; can affect the small business rate |
| Paying for it | After tax personal savings | Retained earnings already in the company |
| Moving it later | Transfer can trigger tax | Transfer can trigger tax |
How Lenders Look at a Corporate Purchase
When a corporation buys a residential rental, many lenders treat it differently from a personal purchase. Expect to provide corporate financial statements and tax returns, articles of incorporation and a list of shareholders. Most lenders ask the shareholders to sign a personal guarantee, which means you remain responsible if the company cannot pay.
Plan for a larger down payment and possibly a higher rate than a personal mortgage. Choose a mortgage broker who arranges corporate files regularly; our guide on choosing your lawyer, broker and inspector explains what to ask.
Want to compare a personal purchase with a corporate one? Neeraj can help frame the questions.
Call (647) 370 8885The Land Transfer Tax Trap
Land transfer tax applies when property changes hands, including between you and your own company. Ontario's guidance on transfers involving corporations says that when an individual transfers land to a corporation in exchange for shares, the tax is based on the fair market value of the land at registration. The same rule applies when a corporation transfers land to a shareholder.
In plain words: buying in your own name now and moving the property into a company later can mean paying land transfer tax twice. Decide the right buyer before you sign the offer, and make sure the offer names that buyer. Changing the buyer after signing usually needs the seller's agreement.
Passive Income and Your Small Business Rate
Rental income earned inside a private corporation is usually treated as passive investment income. As BDO explains, once a corporation and its associated companies earn more than $50,000 of passive income in a year, the small business deduction starts to shrink, and it is eliminated at $150,000. For an active business that relies on the small business rate, a large rental portfolio in the same corporate group can raise the tax on business income.
- Ask your accountant whether a separate holding company makes sense.
- Model the rental income, interest and expenses before you buy.
- Remember that you cannot claim the principal residence exemption on a home the corporation owns.
Looking for Markham properties that work as long term rentals?
Call (647) 370 8885Professional Corporations and Living in a Company Owned Home
Medical, dental and other professional corporations have their own rules set by the governing college and by provincial law. Before you buy through one, confirm with your accountant and lawyer what investments the corporation is allowed to hold.
Buying a home you will live in through a corporation is rarely simple. The Canada Revenue Agency can treat personal use of a company owned home as a taxable benefit, and you lose the principal residence exemption. For most families, the home they live in belongs in personal names.
What Usually Works Well
Corporate ownership fits best with a long term rental or a commercial unit the company will use, with clear numbers and professional advice in place. For rentals, our guides on being a first time landlord and legal basement apartments help you choose a property that rents well and stays compliant.
Before you make an offer
- Meet your accountant to choose personal, operating company or holding company ownership.
- Get a corporate mortgage approval in the chosen name.
- Write the offer in that exact name, with your lawyer's input.
- Plan who will sign the personal guarantee and how title will be held long term.
Have a question about the offer side of a corporate purchase? Call Neeraj.
Call (647) 370 8885Questions Markham Clients Ask
Can I buy a house in Ontario through my holding company?
Yes. Many investors buy rentals through a holding company. Expect fewer lender options, a personal guarantee, and different tax treatment, so get advice from your accountant before you sign.
Do I pay land transfer tax if I move my property into my corporation?
Usually yes. Ontario guidance says that when an individual transfers land to a corporation for shares, land transfer tax is based on the land's fair market value at registration.
Does rental income in a corporation affect the small business deduction?
It can. Passive income above $50,000 a year reduces the small business deduction for the corporate group, and it is eliminated at $150,000.
Can a corporation claim the principal residence exemption?
No. The principal residence exemption is for individuals. A home owned by a corporation does not qualify.
Can my medical professional corporation buy real estate?
It depends on your governing college's rules and provincial law. Confirm with your accountant and lawyer before you make an offer.
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Buy With the Right Structure From Day One
Neeraj will help you find the right Markham property and work alongside your accountant and lawyer so the purchase fits your long term plan.
Sources: Ontario, Land transfer tax: transfers involving corporations; BDO Canada, Passive investment income and the small business deduction; Ontario, Non Resident Speculation Tax (foreign corporations).
Neeraj Moolchandani, REALTOR®, Kaizen Real Estate Team, eXp Realty, Brokerage, 9763 Markham Rd, Markham, ON L6E 1A4. (647) 370 8885 · info@kaizenrealestate.ca. Published November 11, 2026. General information only, not legal, tax, financial or engineering advice. Rules and programs change, so confirm details with the official source and your own professionals before you act. Not intended to solicit properties currently under contract.
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