Short answer
Possibly, but moving corporate money into a personal home purchase can create tax, shareholder-loan, documentation and lender-source-of-funds issues. The withdrawal should be planned with an accountant before the offer becomes firm.
The client concern
The corporation has enough cash for closing, but the client assumes being the owner means the money can be transferred personally at any time without tax or underwriting consequences.
What the official guidance establishes
CRA’s shareholder-loan guidance explains that amounts received from a corporation can create an income inclusion unless an exception applies. Mortgage lenders and mortgage professionals must also understand the source, ownership and movement of down-payment funds.
What it does not guarantee
This does not mean every corporate withdrawal is taxable or prohibited. Salary, dividends, repayment of a genuine shareholder loan and properly structured borrowing can have different treatment. A broker cannot select the tax method.
A practical Ontario example
Illustration only: A shareholder transfers $150,000 from the company two weeks before closing and labels it “loan.” The lender may request corporate statements and authorization, while the accountant may identify a personal tax consequence or repayment requirement.
Practical options to explore
Before transferring funds, ask the accountant to document whether the amount is salary, dividend, shareholder-loan repayment or another permitted transaction. Confirm signing authority and business liquidity. Keep a complete 90-day trail and leave enough time for the lender and lawyer to review it.
Questions worth asking
- Which income method is this lender actually using?
- Is the number based on tax income, business cash flow or property equity?
- Which deposits, expenses and add-backs are independently supported?
- What are the total rate, fee, term and exit costs?
- Can the file move from alternative, MIC or private financing back to A lending—and when?
Rajiv’s broker perspective
A self-employed mortgage should tell the complete business story without stretching the facts. I would first test the strongest supportable A or insured method, then compare alternative/B cash-flow approaches where appropriate. MIC or private financing can solve an equity or timing problem, but it should have a realistic exit. The goal is not to manufacture a larger income number; it is to match verified evidence with a lender whose policy understands the business.
Related: Mortgage Knowledge Centre · Declined? Start here · Updates & Rules Centre
Does your business earn more than your tax return seems to show?
Bring the tax returns, business statements and the problem you are trying to solve. Rajiv can test the practical A, insured, alternative/B, MIC and private routes and identify the evidence each path needs.