How to turn your mortgage into a tax deduction — legally and efficiently.
⚠️ Note:
This guide is for educational purposes only. Always consult a licensed Canadian tax professional before implementing this or any tax strategy.
1. Overview
Mortgage interest is one of the biggest costs of homeownership — and in Canada, it’s not tax deductible.
That is, unless you’re borrowing for the purpose of earning income. Rental property owners do this every year, deducting interest on mortgages, repairs, and more.
But what if you're both a homeowner and a landlord?
That’s where Rental Cash Damming comes in — a viable and elegant strategy that allows you to restructure your cash flow so that the interest on your personal mortgage becomes deductible over time, without increasing your overall debt, and fully within CRA guidelines.
This guide explains exactly how it works, who it’s for, what tools you’ll need, and how to execute it correctly.
