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.

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I am planning on renting out my home, and i believe my mortgage agreement states that i have to live in my home for the first year of the loan, which we have done. my question is, what happens if someone was to rent out their home and this was against the contract? what action can the mortgage company take against you? thanks spock!

They accelerate the note and make it due immediately. Furthermore, you could be investigated by the FBI for mortgage fraud - this is happening more and more. It's become more commonplace for the lender to knock on a door to verify owner occupancy after closing- I know it happened to me....probably, in my case, because I was an employee and this was part of an audit. An audit is very likely if there is a late payment or worse default. That said, most loans are only based on "intent" to occupy the property as a primary residency. In the case of a conventional loan, they want you to occupy the property within sixty days. That's not to say you couldn't get a job transfer or some other circumstance six months later. Some lenders, and this may be your case, place additional restrictions of a year or more for owner occupancy. I assume this is to keep people from gaming the system.

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Are about to close on new house but condo we were renting is now without a renters. can mortgage company come after the new mortgage if we let the condo go into foreclosure? this is in illinois.

Very likely, yes. But it does depend on the wording of your mortgage and the laws of your state . bests, -rsr-

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I have been renting the home i am in for 2 years. i have learned from my property manager that the landlord has filed for bk and there lender is going to foreclose soon. if the lender takes over the property, can the lender demand that we vacate the property or do we have 30 days? also i have been told that if the lender serves an eviction notice to us, they can attach this information to our credit report. is this true?

It really depends on the state you live in. In my state, a sherriff comes to the property, kicks you out, changes the locks and tells you that you have 10 days to contact the authorized bank represenatitive to let you in the property to remove your belongings (whether you are a tenant or the owner). So 30 days isn't a given, it could be less. (most people know they are going into foreclosure and notices are sent in the mail, at least here) Also, I don't really think they can attach anything to your credit report, if you are not on the actual loan. I am not 100% sure if there is something else going on where you live, but it wouldn't make sense for them to be able to do that. If you have proof that you have been making your rent payments, you should be fine. You need to confirm with the property manager that this is really going to happen and find another place to move while you still have the ability to go in and out of the home freely. There is no sense in waiting around if you have this notice. But you should find out your state's laws on the landlord's responsibility to you as the tenant if they get foreclosed on.

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I'm thinking of buying a home. the companies i've seen with the best rates all say that the property must be owner-occupied for the life of the loan. mortgagees are allowed to have a tenant, as long as they also occupy the premises. no absentee landlords. are these provisions really enforceable? when you're a homeowner, can't you do what you want with your own property? they claim their motivation for this is that owner-occupants stabilize neighborhoods & i agree with that. however, it's a scary thought that if i need to move, i won't have the option of renting out the home instead of trying to sell it. who knows what the market will be like in a few years. sometimes renting a property out seems necessary, you know? it's scary not to have that option. so can these "rules" be enforced? once you sign a mortgage, aren't you able to decide these things for yourself, as need dictates? i'm an honest person & wasn't intending to commit mortgage fraud. it's unfair to say that...it should be clear that i just don't understand the rules, that's all. when you buy a house, you're considered the homeowner, right? you don't have to have your mortgage company's permission to get a pet, but you would need your landlord's permission if you were renting. and yet homeowners can be legally prohibited from renting out their home if unforeseen circumstances arose? i fully intend to inhabit the property but i didn't like having my options restricted in case of an emergency or something. i mean, what if someone needs to move out of state in the future but for whatever reason the house won't sell? it's wrong to prevent them from renting it out since they're the homeowner. the companies offered low interest rates but had this clause in the contract. just wanted to know if it was legal/enforceable & i still really don't know.

First of all, the advice you are seeking is legal advice. I am not a lawyer and I doubt that most of the people answering you are lawyers either so be very cautious of taking advice. Most banks will work with you to manage a loan but they are giving you special consideration in the form of a lower interest rate because the property is owner occupied. My experience has been that most banks will not foreclose on a loan that is being kept current if the owner decides to relocate. Instead they will usually try to increase the interest rate (it may even be spelled out in the contract that your interest rate increases if you are no longer an occupant of the property). Banks don't want your real estate, they want your money! But they operate under state and federal regulations that govern how they can lend their funds and also have to answer to the investors who own the bank. You are not trying to defraud the bank just because you are thinking about the consequences of conditions in the contract , you are simply being prudent. My view is that you get the loan under the conditions you expect to be living under when you go to settlement. As long as you maintain a good relationship with the bank, keep your payments up to date and advise them if your circumstance change they will most likely help you adjust the loan or re-finance the property if you ever need to move out of the building. My wife and I have had several loans that were based on owner occupied conditions and the bank has always worked with us to make sure there were not any problems if circumstances changed. HTH. Good luck!

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I have a rental property that hasn't been rented for over 6 months because of vacanacies and foreclosures in the neighborhood. other than taking the house back and screwing up my credit i'm wondering what the bank will most likely due to me if i stop paying the mortagage...will they come after my assets?

Sure they will. You went after their money. Investments have no protections. You might try filing for bankruptcy, but you need to sell all of your assets to do that as well.

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I currently rent a house which costs over £1000 pounds a month not to mention the council tax which is nearly £200 a month and all other utilities ( i live just outside london so cost of living is slightly higher). both my partner and i work and pay the rent & bills without any problems but trying to save the nearly £60000 we have been advised to save to get a mortgage is impossible. the rent we pay is higher the we would have to pay if it was a mortgage. is there any help out there for people in our position? if we can prove that we can manage our rent then will a mortgage company not just give us a 100% mortgage based on that rather than wanted the sixty thousand pounds deposit the 20%.

£60,000 does not (contrary to another answer) suggest you are looking at a purchase price of around £400,000. You state the deposit you have been asked to provide is 20%, which if the entire £60,000 is used for deposit means you are looking at a price of £300,000. In fact 25% is probably more likely for a first time buyer, and you will need cash to cover other expenses such as Stamp Duty Land Tax, legal fees, mortgage application fees, survey fees, local searches, removal expenses, etc. Taking that into account you probably have about £50,000 to use as deposit so are limited to a property worth £200,000. Given that you are struggling to save money I suspect that your incomes would not stretch to a mortgage much bigger than this anyway. You ask how are you "meant" to save as if it is some kind of requirement that you do so. No-one is forcing you to buy your own place, and many people prefer the flexibility they get from renting. If you want to buy then its up to you to make sacrifices to get what you want. You can obviously save rent by moving to somewhere cheaper. I have no idea what other expenditure you make, but you can cut out luxuries like holidays, gym membership, 2nd car, alcohol, cigarettes, drugs, restaurant meals, etc. You can also cut back on other things - walk or cycle instead of driving, wear a jumper and turn the heating down a notch, buy clothes from matalan instead of Next (etc), etc.... There is certainly no "help" other than anything friends or family might be able to provide. And no mortgage lender will consider anything like a 100% mortgage, regardless of your ability to repay the debt. You should also be very careful about overstretching yourself, because interest rates are currently at an all time low. This will go up sooner or later and you need to make sure you have enough leeway to cope with higher monthly repayments.

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This is when buying a house not renting property

Perhaps you're house is on another person's land and they can charge you land usage fees.

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I'm now pretty certain my landlord hasn't told his mortgage company that he's renting the property to me. i have three children and have a shorthold tenancy agreement, do i still have the normal tenancy rights.

Yes you do have rights. If there is a problem that will be between the Landlord and his mortgage company.

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I want to stay in my current home and buy an investment property. what are the consequences of lying to the mortgage company saying the new place will be my primary, but really renting it to avoid the higher interest loans?

It's called loan fraud - a felony. People have been prosecuted. Remember, always do the honest thing. What happens down the road when you want to buy another investment property? Plan on lying again? Don't get in the habit.