Knowledge centre
Yes. Since October 1, 2025, reporting entities can have obligations to report material discrepancies involving the federal beneficial-ownership registry when specified high-risk conditions are met.
Because identifying the individuals who ultimately own or control an entity helps prevent anonymous companies, trusts or partnerships from hiding who is behind a mortgage transaction.
FINTRAC recordkeeping rules require mortgage-sector information records to include a person’s occupation or a sole proprietor’s principal business, and entity records must include the nature of the entity’s business.
Because the lender and mortgage professionals must understand whether the money is genuine business revenue, borrowed money, a transfer between owned accounts or funds from another person. A clean paper trail protects both the approval and the client.
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.
No. CMHC says income for a sole proprietorship or partnership may be grossed up by 15% or assessed through eligible add-backs. “May” is not an automatic increase, and it is not a rule for incorporated business revenue.
Potentially. CMHC has a self-employed mortgage-insurance program with several documentation options, but the insurer and lender must still be satisfied that the income, business and overall application are credible.
No. OSFI’s rental-mortgage clarification concerns how federally regulated institutions classify exposures for capital purposes. OSFI has said it does not change how rental income is used to qualify a borrower under Guideline B-20.
For income earned after 2023, federal tax rules can deny expense and capital-cost-allowance deductions attributable to a non-compliant short-term rental for the period of non-compliance.
For an eligible insured two-to-four-unit non-owner-occupied property, CMHC describes gross-rent and net-rental-income approaches. The result depends on the method, expenses and the complete application—not rent alone.