Why Private Banking is so Important

Private banking is the best banking option if you are incorporated because:

Leverage your corporate income – Unlike traditional banking, private banks consider your total corporate income, not just your personal salary. For example, if your business earns $500,000 per year, but you only pay yourself $50,000, private banks may still recognize the full $500,000 as your income for lending and financial purposes.

Acquire residential properties in your Holdco – Private banking allows you to purchase residential properties under your holding company (Holdco), offering greater asset protection, tax advantages, and more flexible financing options.

I’ve personally seen people pay over $500,000 in extra taxes simply because they used a mortgage broker instead of a private banker. Private banking strategies can significantly reduce tax liabilities while maximizing financial leverage.