How to Make Your Home Mortgage Tax Deductible in Canada Watch Video

Allan Madan, CPA, CA
 Nov 4, 2015

Want to know how to make your mortgage interest tax deductible? Read More…


The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.

Related Resources

Leave Your Comment Here:
Required fields are marked.

Your email address will not be published. Required fields are marked *

Comments 10

  1. Would your primary residence now be considered an investment property and as such be subject to capital gains tax upon sale?

  2. Hello Allan, Is HELOC loan interest is still tax deductible in 2020 if I use it to buy RRSP or TFSA or even non Registered investments.

    1. Hi Navdeep,

      Interest paid on a HELOC where the proceeds from a HELOC are invested in a TFSA or RRSP is non-deductible. However, if the proceeds from the HELOC are used to purchase non-registered investments, then the interest can be deducted.

  3. What if I had $200k Heloc while buying a rental property for $430k, but I used my savings to pay $150k of the HELOC, and now just have $50k Heloc left with $150k credit limit, can i get this $150k back out, pay off my primary residence mortgage by $150k, and have the entire interest used to service the $200k as tax deductible, as it was part of the original $200k HELOC to by rental property?

    1. Hi Maddie,

      No, you cannot. The CRA traces the source and use of the funds. If you are borrowing funds to pay down a principal residence mortgage, the interest is non-deductible.

  4. Proceeds from the HELOC are used to purchase US equities in a non registered and taxable cash account. Is the HELOC Loan Interest tax deductible if used to purchase non dividend paying stocks?

    1. Hi Riz,

      Interest paid on money borrowed to purchase non-dividend paying stocks is non-deductible. However, the CRA’s position is that the interest can be deducted if the underlying stocks are common shares and there’s a reasonable expectation that a dividend will be paid in the future. This can happen when companies choose to invest their annual earnings to grow the business rather than pay dividends immediately.


Pin It on Pinterest

Share This