borrow or use own money for down payment on investment property.

My question is: Canadian-specific

QUESTION: I'm about to purchase an investment property with a friend. I need $20,000
for the downpayment (my share). I do have $20,000 cash for downpayment.
Should I use my money or use a line of credit to borrow $20,000 for tax write off purpose?

david ingram replies:

Ah, that they should all be this easy.

If you have plans to buy a car (non deductible0 or take a vacation to Europe (non-deductible) or hagve an outstanding non-deductible mortgage at the moment, you shoul duse the $20,000 you have to buy the car, pay down the non-deductible mortgage or take the European vacation.

If you can NOT forsee the need for the $20,000 or any part for personal expenses in the next coup,le of years, save interest and use it fro the down payment.

In the meantime, go to and read the November 2001 Newsletter in teh top left hand box.  The first pag is on which Canadians have to file a US tax retuirn and then there are 7 pages of how to make interst deductible.  Fred Snyder at has a calculator for the project as well and does free seminars every Thursday at noon and 7 PM at his office at 1764 West Seventh in Vancouver (starting again in September with one big one in July or August date to be determined).  Call 604-731-8900 to get more details. �