Sent: Friday, March 09, 2007 10:23 PM
Subject: creditline mortgage - HELOC - Glen Kelleway - Fred Snyder - Stuart Rodger - David Ingram gives expert income tax & immigration help to non-resident Americans & Canadians from New York to California to Mexico family, estate, income trust trusts Cross border, dual citizen - out of country investments are all handled with competence & authority.
My_question_is: Canadian-specific
Subject: creditline mortgage
Expert: [email protected]
Date: Friday March 09, 2007
Time: 02:34 PM -0500
QUESTION:
Hi David,
I'm thinking of getting a creditline mortgage for the purpose of purchasing some Canadian stocks (dividend producing). I understand that the interest I'll be paying would be considered tax deductible and that 50% of the dividend income I earn is taxed. What I want to do is take the dividend income I'm earning and put it towards my mortgage ($90,000). The value of my home is just over $600,000. What type of paperwork do I need to provide Revenue Canada to allow me to do this? I'm just worried if things are not done in a particular order I'll have problems later on. I'm not sure how particular Revenue Canada is in this regard. Thanks in advance for your help.
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david ingram replies:
You need a direct line showing that you borrowed the money and used it to buy stock, mutual funds, a business or any other income produvcing commodity, maybe a gravel truck.
If you do not show a direct linkage where the borrowed money is specifically used to buy the commodity or item, you will lose with Revenue Canada.
Stuart Rodgers with Manulife Bank is one Mortgage man who understands the process and his HELOC (Home Equity Line Of Credit) can be diveded into five portions. His phone number is (604) 351-6133.
[email protected].
Glenn Kelleway at Mortgage it Right is the mortgage broker I used for my own mortgage - He is also one of the few who understand the process. His number is (604) 476-0053.
His email is [email protected]
You can go to www.centa.com and read the November Newsletter in the top left box and you can listen to Fred Snyder's program on Sunday morning. He will give you a free written financial plan which will explain the system
You should also go to the CRA site and read Bulletin IT-533 on the subject.
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