Should I purchase property in my name, or through a corporation?

By Samantha Murphy and Sara Jetten on Friday August 29, 2025.

Whether you should purchase property in your own name or through a corporation will depend on the circumstances of the purchase, and particularly the intended use of the property. Below are some aspects of purchasing property which you should consider in making this decision.

Securing a Mortgage

Individuals may have better chances of obtaining a mortgage due to greater credit history available for consideration by the lender, especially where a corporation is newly incorporated.

If seeking to obtain a mortgage through a corporation, the lender may require a personal guarantee for the corporation’s mortgage obligations. Individuals should consult a mortgage specialist regarding their options in securing a mortgage, the different interest rates available and how these operate, and other lending requirements.

Purchasers should be aware that if they obtain a mortgage for a property held by a corporation, the lender’s consent will likely be required for any change in control of the corporation. Legal counsel should be consulted before making any changes to the corporate structure.

Estate Planning Considerations

If you are purchasing residential property with another person and wish to leave the property to that person upon your passing, you can take title as joint tenants. This allows the surviving owner(s) to have the property placed in their name(s) without the need for probate of the property.

If you purchase the property in the name of the corporation, a properly drafted Shareholder’s Agreement, along with your Will(s), can provide for the disposition of the property in accordance with your wishes in the event of the passing of a corporate shareholder.

Tax Considerations

There are several tax benefits available to individuals in the context of buying and selling residential property. Individuals benefit from the principal residence exemption, a tax benefit which affects capital gains tax on the sale of property which was used as their principal residence. This tax exemption is not available to corporations, nor individuals selling property, which was not used as their primary residence, such as investment property.

Additional tax-saving incentives are available to qualifying first-time homebuyers, including a land transfer tax rebate on purchases of an eligible home. Also, first-time homebuyers who enter into agreements of purchase and sale with a builder for the purchase of a new home at or under $1.5 million on or after May 27, 2025, will be eligible for a GST rebate.

If you are in the market for your first home, it is important to stay up to date with the tax incentives available to you. Other tax incentives available to individuals include the First Home Savings Account, the Home Buyers’ Plan, the First-Time Home Buyer’s Tax Credit, and the GST/HST New Housing Rebate. Individuals should refer to their banks for more information about the First Home Savings Account and the Home Buyers’ Plan. For more information on the First-Time Home Buyer’s Tax Credit and the GST/HST New Housing Rebate, please refer to the following blogs.

Due to the numerous tax incentives available to individuals in the context of buying and selling their primary residence, particularly the principal residence exemption, it is rarely advantageous to purchase a primary residence through a corporation. If, however you are purchasing commercial property or investment property, it may be more appropriate to purchase under a corporate entity. In tax planning, individuals should consult their accountant to discuss strategies and structures which would best suit their wishes.

Corporate Ownership and Ongoing Maintenance

Purchasing property through a corporation can offer meaningful advantages, including liability protection, tax planning flexibility, and smoother co-ownership structures. If you decide to purchase property through a corporation, it is important to stay on top of corporate governance requirements and to keep your corporation in good standing so that you can continue to enjoy the benefits of your corporate structure.

Corporations can be made subject to administrative dissolution for not staying up to date with filing and reporting requirements, including maintaining the required number of directors, complying with filing requirements under the Corporations Information Act, or for defaulting on any tax obligations. Corporations can also be dissolved voluntarily, typically as part of a planned wind-up.

If your corporation is dissolved while owning property, the property, as an asset of the company, vests to the Crown, and the corporation must be revived to recover legal title to the property. There are different levels of complexity in the revival process depending on whether your corporation was dissolved voluntarily or by administrative dissolution, however, to avoid these issues with ownership which can cause delays or complications in corporate transactions, it is important to keep your corporation in good standing.

Maintaining a corporation to keep it in good standing includes filing annual returns and keeping corporate information up to date, staying current on fax filings and obligations, and maintaining an updated minute book with proper director and officer appointments. Please contact our Corporate Team if you require assistance with corporate services and maintenance.

How can we help?

At Merovitz Potechin LLP, our Real Estate Team, Wills and Estates Team, and our Corporate Team work closely on these matters to ensure both the transaction, and the structure are sound, helping you avoid surprises down the road and ensuring the legal and tax planning pieces work together.

Disclaimer: This blog is intended for informational purposes only and reflects the laws of the Province of Ontario. It does not constitute legal advice. Readers should consult a qualified lawyer regarding their specific circumstances before making any legal or financial decisions.