BoC rate cuts in 2023 increasingly unlikely: CIBC | Canadian Mortgage Professional (mpamag.com)

Critics say OSFI’s proposed mortgage changes could do more harm than good – Mortgage Rates & Mortgage Broker News in Canada (canadianmortgagetrends.com)

OSFI Set To Tighten Banking Regulation (mailchi.mp)

Canadian Inflation Falls To 4.3% y/y in March–Lowest Level Since August 2021 (mailchi.mp)

Bank of Canada Holds Policy Rate At 4.5% (mailchi.mp)

Bank of Canada to hold rates steady at 4.50% through this year | Reuters

For Immediate Release

Entrust Mortgage Broker, Steven Brouwer, Ranked 3rd Best in Canada for 2022 on Rate-My-Agent.com

Chilliwack, BC – Steven Brouwer of Entrust Mortgage has been ranked the 3rd  Mortgage Broker in Canada for 2022 by Rate-My-Agent.com. The review site analyzes all the ratings and reviews on the site to compile a list of the Top 10 Mortgage Brokers in Canada for 2022.

“Unlike other agent ranking sites, agents can’t pay to have negative reviews removed or hidden and cannot pay to be included on the list of top-rated agents,” says Rate-My-Agent. The company won’t disclose exactly how it verifies reviews “to protect the integrity of the process,” but it says “there have been many attempts by agents to game the system and rankings, which is why we keep our algorithms a closely held secret.”

Rate-My-Agent.com is the only review site that actually penalizes agents caught cheating.

Steven had 19 reviews and a “success ratio” of 100%. Agents are rated on knowledge, professionalism, responsiveness, usefulness of website, value of service, and mortgage application guidance.

The rest of the top mortgage brokers for 2022 can be found on Rate-My-Agent.com.

The list is published annually based on that year’s verified reviews.

This year Rate-My-Agent.com started recognizing and ranking agents for their charitable contributions as well. The Top Giving Agents in Canada ranks agents based on how much they give to registered Canadian charities. “When choosing an agent to work with, people can consider if the agents’ values align with theirs, and hopefully, this helps people find the right agent”. The new ‘Worthy Cause’ ranking will not impact the agents’ annual ranking which is solely based on the reviews agents get from their clients. The company already pledges 50% of its profit every year to worthy causes. “Our vision is to see how much good we can do, and this year we have joined forces with Raising the Roof to fight youth homelessness in Canada.”

Rate-My-Agent.com is a rating and review platform for real estate agents, mortgage brokers, and insurance agents.  It’s free for the general public and real estate professionals.

Canadian Inflation Slows in January Assuring a Rate Pause At March 8 BoC Meeting (mailchi.mp)

Mortgages and Corporations.

If you are a self-employed client who owns your own business, you may have chosen to set that business up as a corporation. This means the business operates as essentially its own person. They have income through business revenue and expenses from marketing costs, materials, office space, etc.

When it comes to getting a mortgage, there are a few benefits to putting that mortgage under the corporation instead of your individual self:

1. Corporations tend to pay a lower tax rate than the personal income tax rate and only pay taxes on the net business income.
2. When it comes to qualifying for a mortgage, a lender can look at the business income or the personal income they pay themselves.
3. Adding the net business income or the personal income from year 1 and year 2 and dividing it by two is the income a lender will associate with that borrower. Keep in mind though this will also be affected if there is more than one shareholder.

There are two ways one can go about this type of corporate mortgage, depending on if the corporation is the operating company or acts as the holding company.

Mortgages and Operating Companies

As with any mortgage, there are considerations and more-so when looking to put your mortgage under your corporate umbrella. While you would essentially qualify as though you’re buying a property in your name, your application will be packaged much differently to the lender. You would be instead qualifying as a corporation with a personal guarantee from yourself.

It is also possible to do a mortgage deal under your personal name but utilize both personal and corporate income. Lenders can do this by looking at both personal T1 generals and respective NOA, plus you can qualify by looking at the Net Business Income before taxes as seen on company financials.

When it comes to getting a mortgage under an operating company (versus a holding company), you may encounter limitations with the lenders that provide this type of deal. You would be looking at an Alt A (B Lender) to finance this particular mortgage, which may come with higher interest rates.

Mortgages and Holding Companies

When it comes to getting a mortgage under a holding company, you will find things are a bit easier. Having a mortgage under a holding company, versus the operating company, essentially removes any limitations or liability from the operating company with regards to the mortgage.

However, to be eligible, you must meet the definition of a Personal Holding Company (PHC) or Personal Investment Company (PIC) per the bank. This is typically considered “a Canadian incorporated entity established by an individual or individuals for the purpose of conducting investment activities, which can include holding real estate, and/or investments. Personal Holding or Investment Companies, and the owner of the PHC or PIC must qualify personally, and sign as covenantor”.

Some additional reasons to consider a mortgage under a corporation or holding company include:

1. If your intent is to flip properties rather than hold them as rental revenue, it might make sense to consider holding it through a corporation
2. You have retained corporate profit that can be used to buy a property without withdrawing money personally and incurring personal tax.

The most important thing to note when going this route for a mortgage is that ALL DIRECTORS listed on the corporation MUST also be listed on the mortgage application. For a sole proprietorship, this is easy as there is typically only one director, however on larger corporations this is something to consider.

For some individuals, the benefits might not be enough to convince them to put their property under the corporation but for others, it may be the perfect solution.

To find out how your income would be viewed by a lender if you have your business set-up as a corporation, contact a Dominion Lending Centres mortgage expert.

Written by My DLC Marketing Team