Self-Employed Founder Bought a $2.3M Home Without Touching Corporate Capital

Buying a $2.3M Home Without Touching Corporate Capital

A self-employed tech founder based in Alberta was relocating his family (married couple with 5 children) to Comox, BC. He wanted to buy a $2.3M home while keeping over $1M in retained earnings inside his corporation to continue growing the business.

His profile included:

• 100% of household income from dividends

• No spousal income

• A complex blockchain / DeFi market-making business

• Corporate net income over $1.5M and $1M+ retained earnings

• All existing real estate owned free and clear

On paper, he was very strong—but the structure made traditional underwriting more complex.

CRA “Crypto Mining” Classification and Lender Scrutiny

The business had been flagged by CRA as a crypto mining operation, even though it actually operated as a DeFi market maker and liquidity provider.

That label triggered:

• Extra lender scrutiny

• Concerns about business stability and regulatory risk

• The risk that an underwriter would decline the file based on industry alone

Tight Timeline and Dividend-Only Income

Additional pressure points included:

• A compressed subject removal deadline due to a “right to prompt” clause in the offer

• The client being on vacation during the final week before subject removal

• 100% of income from dividends, with no T4 salary and no spousal income to fall back on

If the mortgage didn’t get approved in time, there was a real risk that he would have to pull over $1M out of the corporation to close, hurting long-term returns and tax-efficiency.

Designing the Right Mortgage + HELOC Structure Up Front

The financing strategy was built around preserving corporate capital while still securing the home comfortably.

We structured the deal as:

• $900,000 fixed-rate mortgage, 5-year term, 25-year amortization

• $230,000 HELOC limit, undrawn at funding

• Global limit: $1.13M

• LTV: 48.6% on a $2.3M purchase price

The down payment came entirely from the sale of his previous Alberta home ($1.5M), so there was no need to withdraw business funds.

This split:

• Locked in a conservative mortgage amount

• Provided a HELOC for future flexibility (investing, tax planning, renovations)

• Avoided unnecessary exposure to higher-interest, short-term borrowing

Reframing the Business and Income Narrative

To address the CRA “crypto mining” flag and complex corporate structure, we:

• Provided full corporate financial statements showing over $1.5M net income

• Highlighted $1M+ retained earnings and no corporate debt pressure

• Prepared a clear written narrative explaining the real business model (DeFi liquidity provisioning, not mining)

• Demonstrated that all household income came from stable, recurring dividends

This helped the lender see the client not as a speculative crypto miner, but as a profitable, well-established financial technology operator.

Strategic Escalation and Exception-Level Review

Given the tight timelines and unique risk profile, we escalated the file:

• The case was moved to a senior VP at the lender

• We clearly laid out the urgency, the client’s strength, and the broader wealth strategy

• Underwriters gave the file an exception-level review, rather than declining based on surface-level industry tags

Through this process, we secured full approval without needing to draw from the HELOC and without any last-minute capital pull from the corporation.

$2.3M Home Secured with Capital Intact

The client successfully purchased the $2.3M family home in Comox, BC with:

• An appraised value of $2.325M and assessed value of $2.428M

• A 48.6% LTV structure

• A $900,000 fixed mortgage funded on time

• A $230,000 HELOC limit in place but undrawn at closing

Corporate Capital and Long-Term Strategy Preserved

Most importantly:

• No corporate capital had to be liquidated to close the purchase

• The business retained over $1M in retained earnings to reinvest and grow

• The mortgage rate (around 4.39%) was lower than the expected after-tax return on business capital, making it more efficient to borrow than to pull funds out

The client ended up with:

• A high-quality home for his family

• Preserved business growth capacity

• Built-in flexibility via the HELOC for future investments, tax strategies, or liquidity needs

This deal wasn’t just about getting approved—it was about protecting long-term wealth and strategy while upgrading his family’s lifestyle.