If you have enough equity in your home you can get a second mortgage or a line of credit to purchase your investment property . You can also refinance your mortgage to pull equity out from your home in order to invest.

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.

ON Canada, Sept 11, 2011 - Current fixed rates are at the lowest and this makes housing more affordable. Variable rates on the other hand is around 2.4% while fixed are at 3.19%. The difference between the two rates is low or $ 39 for 25 years for each 100K of loan. Having the peace of mind of equal payments vs. low and volatile rates, the fixed rate may be a better option at this point in time. It could change next month. Email me at victor_catalan@centum.ca if you need further assistance on this matter.