I currently just have 1 rental property and my primary residence. I want to purchase another rental but am not sure if I will get approved as most banks won't recognize 100% of rental income. Mortgage on rental is 950 a month and it nets me about 1675. Even though I am making over $700 a month the bank will probably only recognize 50%. This shows a shortfall that will cut into my TDS ratio. Would it be beneficial to put my current rental in a corp? I would probably still have to be the gaurentor, but this way I am hoping the mortgage will not show up in credit report and will not affect my tds. Hopefully then I could get approved for another rental. I understand I would probably pay higher taxes on rental income in a corp but this is not what I am concerned about at the moment.
Thank you for your help.
Read more: I want to buy another rental property, should I transfer mortgage to a corp to get approved?
