As per the Canada Revenue Agency "You can deduct the interest charge on money you borrow to buy or improve your rental property"
For more information on this, please visit the Canada Revenue Agency
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Mortgages can be considered money loans that are specific to property. If they are incurred for the purpose of earning income by renting property to tenants, the interest portion of the mortgage is deductible on line 8710 (Interest and bank charges) of the T776 Rental Income form. Only the interest portion of the mortgage is deductible, and the interest is only deductible in the original term of the loan.
TurboTax Online:
Step 1) Go to
Find and type: Rental Summary and click Go.
Step 2) Edit the information if you already inserted or Enter New Rental Income.
Step 3) Enter the information in the Real Estate Rentals Statement and click Continue.
Step 4) Select the checkboxes that apply to your situation (don't forget Rental Expenses) in the Rental Profile and click Go
Step 5) In the form T776 Rental Expenses enter the Interest amount
Step 6) Click Continue to save your entries.
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