Should You Put Your Student Rental Under Your Child’s Name?

If you’re thinking about buying a student rental property for your child while they go to university, you should consider putting it in your child’s name. A lot of people don’t think about doing this, but there’s a lot of advantages to doing so.

Additional Financing Option

If the house is in your child’s name, and they’re living in it, you can choose to claim it as a primary residence. Banks are a lot more lenient with lending mortgages to primary residence than secondary properties, so it should give you a lot more options for financing, and you can potentially put a lower down payment down.

First-Time Buyer Land Transfer Credit

The other advantage is since your child is a first-time buyer, you can use the First-Time Buyer Land Transfer Credit, which can save you up to $4,000. It’s also a great opportunity for your child to build up their credit.

Tax Savings

And lastly, a primary residence is exempt from capital gains tax for when you go to sell it. However, you do want to check with an accountant to make sure you structure everything properly to meet Revenue Canada’s requirements.

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