Ask Allan Forum
Get expert answers to your tax questions straight from Allan, our owner and experienced CPA. It’s free, direct, and designed to help you make the best decisions when it comes to your taxes.
Hey,
Firstly, thank you for publishing such great content. As a recent immigrant to Canada, your content has been invaluable.
As stated, I have been granted Permanent Residence in Canada. However, I am still employed by an international company. Though I work remotely, my work still requires me to travel overseas frequently for up to months at a time. My family and rental residence are based in Toronto, so I am a Resident for tax purposes.
My question relates to buying a house in Ontario and if setting up a business can help me do so cost effectively. Upon inquiring with my bank for Mortgage, I've been told that I need to put down 35% down payment since I am working abroad. If I were to set-up a Sole Proprietorship or Corporation and be contracted by my present foreign employer to provide consulting services, would that qualify me for the 5% down payment. The foreign company will be paying me through the established business here in Ontario.
Is this feasible and if so, how would you advise I go about this?
Thank you.
Thank you for your email. You should speak with a mortgage broker that specializes in mortgages for self-employed individuals. Ask the mortgage broker whether you can make a lower down payment toward the purchase of a home if you are receiving payroll and a T4 slip from your corporation. If the answer is yes, then it's worth considering incorporating a business.