Tuesday, November 6, 2007

Tax Deductable Mortgages

There is a lot of talk about making your principal home mortgage tax deductible. This can be a good tax advantage for the right people. In essence you need to re borrow against the equity in your home, and then take that money, reinvest in with a financial planner. You would then be able to deduct the interest from the mortgage on your personal taxes. In theory this can be great if you can tolerate the risk and you have the right financial planner that is not going to lose your principal. I would make sure before doing anything to contact a CA and make sure to have the right structure set up for CRA. Then you will need to find the right financial planner, to invest your money with. You want to do all your homework before you go leaping into this type of a product.

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