Hi there, I'm just trying to figure out how mortgages and tax works in regards to how the property is owned.
For example, If I own a personal home worth $600K with say $500K equity and buy an investment property (for say $300K) under an LTC, the LTC needs $120K deposit right? So if I have a revolving credit facility, I could move $120K over from my personal home over to the LTC to pay for the deposit and then the bank lends the other $180K, but then I can only claim the $180K loan as tax deductible, right? Whereas if I brought the investment property in my own name and cross secured with my personal home, then the bank would lend the full $300K and I could claim all of that as tax deductible?
Is the above correct? Or is it possible for the LTC to borrow the full $300K.
For example, If I own a personal home worth $600K with say $500K equity and buy an investment property (for say $300K) under an LTC, the LTC needs $120K deposit right? So if I have a revolving credit facility, I could move $120K over from my personal home over to the LTC to pay for the deposit and then the bank lends the other $180K, but then I can only claim the $180K loan as tax deductible, right? Whereas if I brought the investment property in my own name and cross secured with my personal home, then the bank would lend the full $300K and I could claim all of that as tax deductible?
Is the above correct? Or is it possible for the LTC to borrow the full $300K.
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