As of 2023, in Canada, you can deduct your mortgage interest if you use your property for investment income. This means renting it out and earning rental, business, or professional income for the entire year. You can claim mortgage interest or interest on money you borrowed to finance the purchase of your rental property or to improve it. Unfortunately, you can’t claim a tax deduction for your mortgage principal. As for loan interest, deduct only the money you borrowed to cover soft costs. For more information refer to A Guide to Claiming Expenses on Rental Properties

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