Claiming Reverse Mortgage Interest on Your Taxes
December 8, 2008 · Print This Article
If you are getting a Canadian Home Income Plan (CHIP) reverse mortgage to invest your home equity, Horizon Equity equips you with yet another benefit of choosing the CHIP product.
In Canada, when you borrow to invest, the interest costs associated with borrowing are tax deductible. This means that the interest costs on your CHIP reverse mortgage can be written off come tax time; sometimes drastically reducing the income taxes you owe, or even giving you a tax refund.
Therefore, the tax write off that you receive from borrowing to invest can offset the taxes you owe on your income, or for Registered Retirement Income Fund (RRIF) or Registered Retirement Savings Plan (RRSP) withdrawals.
Keep in mind that it is best to consult an accountant or financial planner regarding your “borrowing to invest” plan prior to implementing it.
If you’re interested in building an investment portfolio while offsetting income taxes through the use of a CHIP reverse mortgage, please Contact Horizon Equity or request a Reverse Mortgage Quote online!