Yes, you can deduct mortgage interest as well as property tax and maintenance from your investment property in Canada. If you own multiple units and you are the one managing them you should also open a property management company and charge your properties a management fee which is also tax deductible.

Powered by

I know there is such a thing as borrowing from your 401k but is it different when you take the money out to buy or put down payment on a house or investment property. i will have to pay a visit to my bank i have one 401k i rolled over several years ago and have another one at the last place i worked which i no longer work so i will have to find out what all my options are. thanks everyone for the input.

I'm not certainly but I believe, contrary to the other posts, that there is a fairly recent provision allowing you to borrow from your 401(k) for a down payment on a home but that is for first time home buyers only. ONLY. Borrowing from your 401(k) has other risks though. If you lose or change jobs that debt can become fully due immediately. Which means you must refinance outside the 401(k) which would be difficult if you become unemployed. There was talk on backing off of those terms but not sure if any such law was passed. And in the past I know that if you borrowed from the 401(k) you could no longer contribute more funds to it as all contributions were directed to the debt. This meant that if the company required matching funds for all their contributions then you lose the matching funds you would have received. In that case I would only borrow an amount I would be fairly certain I could pay back in a relatively short period of time. In other words, not too much in dollars or percent of annual pay. There is a lot to consider in taking such action. Good Luck.