How to Purchase Primary Residence with Corporation

How to Purchase Primary Residence with Corporation

A while ago, I had a conversation with a prospective client.  He had a small business that had accumulated a large amount of corporate earnings in the corporation. 

Like most successful small business owners, he lives well within his means.  He takes out what he needs from his corporation to support his personal needs.  He leaves most of the earnings in his corporation for reinvestment in the business and investment for retirement. 

He’s following what most accountants would recommend… 

There’s only one problem… he wants to buy his next primary residence, but he doesn’t have enough cash sitting in his personal name to do so.  

He owns his own home.  He’s ready to get a bigger house. 

But…all his savings are kept in his corporation.

Well, I suggested to him the potential three options available. 

  1. Borrow money from his corporation to purchase his primary residence with a loan
  2. Buy his new primary residence in his corporation and he pays fair market value rent to his corporation
  3. Sell his old residence into the corporation tax-free, use the proceeds to purchase his next primary residence

Each of these options has its own advantages and disadvantages (and risks of being challenged by CRA).  Watch the details in the video:

Until next time, happy Canadian Real Estate Investing.

Cherry Chan, CPA, CA

Your Real Estate Accountant

P.S.  Erwin and I are hosting the most anticipated event for the year – also known as the Wealth Hacker Conference Saturday, Nov 12 this year.  When we hosted this event in 2019, over 1,500 hardworking Canadians joined us learning all different types of wealth hacks.   Find out more about the event at

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1 Comment

I was trying to find a good guide to help me purchase my primary residence with a corporation and came across this article. It was an excellent resource and I now own my house with ease.

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