According to the Canada Revenue Agency (CRA), you may only claim the interest expenses associated with a loan as long as it generates income.
If you use borrowed money to buy investments (Which in this case would be a HELOC), the interest may be deductible. As long as your investments generate income such as dividends or interest, or if you have a reasonable expectation that they will generate income, you can deduct the interest on your loan from your total income. Note: Capital gains are not income for the purposes of this deduction. If you borrow to invest only in shares that don’t pay dividends and rely on capital gains to make money, the interest is not deductible.
For more information, check out: TurboTax - Is Interest Deductible?
And also, Canada Revenue Agency (CRA) - Interest Deductibility
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Can legal fees and appraisal fees for the home be claimed as investment expenses? Its specifically to obtain a HELOC for investment purposes.
If you are unsure if you can claim these expenses, you can contact the Canada Revenue Agency (CRA) and double check with them.
If you are in Canada or the United States, you can call the CRA at 1-800-959-8281. If you are elsewhere, you can call 613-940-8495. This page has more ways to contact the CRA: Contact the Canada Revenue Agency