What Business Owners Need to Know About Getting a Mortgage for Corporate-Owned Real Estate in BC
The Penticton Western News published an interesting public interest story this week. It was about an Okanagan business that purchased a home to help with employee recruitment. The logic was simple. They would be able to attract and sustain staff by being able to offer them affordable housing, when the current rental market does not. We suppose this news already answers your question – can a business buy a house in BC? Indeed they can. But as a business owner, you want to know a bit more than that, so let’s dive a little deeper.
What Are the Advantages of Buying a House as a Business?
While it varies by the type of corporation (among other variables) there are some distinct advantages to buying a house as a business in BC. As a corporation you enjoy limited liability protection so that your personal assets (i.e. home and vehicles) are protected should a claim arise due to the property’s use as a residential rental (assuming that is the purpose). In BC and Canada there are also unique tax benefits available to businesses that own real estate. On that latter note, there are also capital gains exemptions available to corporate owned real estate, which is another notable benefit for those who plan on turning a house mortgage into an income-earner on the rental market. Corporate legal title over a residential also offers greater flexibility when it comes to estate taxes and potential burdens placed on inheriting family members. If buying a house, as a business, in BC contact Carloni Mortgage Brokers to confirm that you qualify for these advantages.
Why a Broker is Essential to a Business Buying a House
Despite potential advantages, buying a house as a business can be burdensome. For one – you own a business! As such, you have a wide number of day-to-day operational responsibilities to attend to. Moreover, there is even more red tape to sort through. You don’t just go out and follow the normal procedure for getting pre-approved on a mortgage as an individual or couple would do. Further, lenders are less likely to offer a businesses the same rates and terms that they do to first time buyers who need a helping hand to get started. In fact, you may even require access to alternative private lenders if/when you don’t like the terms traditional banks layout before you.
For these reasons, you require the assistance of a mortgage broker. The right broker will manage all of the workload and can connect you to lenders with programs and terms that make the most sense for your LLC (or other type of corporation). By working with a broker you will enjoy the advantages addressed above without diverting attention away from your bread and butter (your business).
If buying a house in the BC Southern Interior contact Carloni Mortgage Brokers today.
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