Low reported income. Retained earnings. Corporate equity.
The things that save you money at tax time often confuse lenders—and shrink your approval power.
Paying themselves more to qualify (and increasing their tax bill)
Structuring the deal to “fit the lender” instead of the long-term plan
Borrowing in ways that make interest non-deductible
Using the wrong entity (personal vs corp) for the property
Preserving tax efficiency
Protecting deductibility
Leveraging the right assets and accounts
Avoiding traps that create unnecessary taxes
Aligning income structure to meet financing thresholds without overshooting tax exposure
Leveraging corporate assets or equity for down payment
Structuring interest to be deductible (legitimately)
Capitalizing interest on certain types of debt
Separating passive vs active income for real estate portfolios
Your mortgage consultant should be meeting with them to ensure that the goals of each professional is aligned with you, the business owner.
What I do with my clients is schedule a planning session with each professional to make sure our individual bias and plan work together.
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You can – but if you’re planning to build in your operating corporation that might put you in a difficult legal position.
Builders or trades people could come after your business income or assets.
It could make financing more complicated or expensive.
You should plan the structure out with your accountant, a lawyer, and your mortgage consultant. I am always ready to chat with your accountant/lawyer or provide one if you need it!
Many lenders can also do land financing or a land draw which allows you to purchase the land.
In some cases you may have a more complex structure such a a joint venture partnership. Some lenders have custom mortgage programs that can allow for these.
This depends on the project (construction cost, if you own the land outright or have a mortgage on it already, if there’s a house on the property, and other factors).
Common rule of thumb is the best pricing lenders aim to see approximately 50% of the land value and construction cost in capital. Other lenders are more flexible if needed.
Yes – infact, many construction lenders will use make sense lending instead of rigid policies.
There are typically 3 routes builders take:
First, if you plan to sell, then lenders may want to see some of the units pre-sold. You would then complete the build and sell as planned.
Second, if you plan to living in the home after completion, many lenders will allow you to graduate into standard mortgage financing. If not, then you can refinance into a standard mortgage.
Third, if you plan to rent the property out after completion, you can often graduate into an investment property mortgage. Again, if you can’t then you can refinance into one.
This is a very important part of the planning process so should be thought about at the start.
Book a call to map out a mortgage strategy that fits your business, your income structure, and your long-term financial goals.
