How to make your Mortgage Tax Deductable

Let’s say that your present mortgage is about $ 70,000.00 and let’s say that you have about $ 70,000.00 in a savings account or GIC.  Now let’s assume that you would like to raise about $ 100,000.00 for investment purposes. It could be to buy more Real Estate or other type of investment. Here’s what you do, pay off the existing mortgage with your savings or GIC, place a new mortgage of $ 100,000.00 and invest the proceeds of the new mortgage. Now you have a mortgage that is tax deductible.

You can see that had you borrowed the difference of $ 30,000.00, your deductible amount would be $ 70,000.00 less and the $ 70,000.00 that you paid off on the old mortgage is reinvested so you’re not losing by using this strategy. Something to think about! 

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