A hot topic in the mortgage industry right now is how to obtain a tax deductible mortgage. Kelowna brokers at The Mortgage Centre - BC Direct Mortgages can show you how your mortgage can be an important part of your financial plan.
The Government of Canada allows mortgage interest to be tax deductible only if the funds were used for investment purposes that have the ability to generate income and make a profit. This includes investing in real estate investment properties, stocks, bonds, mutual funds, or even your business.
An important point to remember is that it is
"what the funds are used for" that determines the eligibility of your tax deductible mortgage, not
"what the collateral is". So, if you take equity out of your own personal residence to purchase a free and clear rental property, even though there is no mortgage on the rental property, the mortgage funds used to purchase the property is a tax deductible mortgage.
Kelowna brokers at The Mortgage Centre - BC Direct Mortgages can also explain how a readvanceable mortgage can convert your existing mortgage into a tax deductible mortgage.
If you have any questions on how you can obtain a tax deductible mortgage, please give us a call anytime at (250) 762-2070.
