Is Your Mortgage Tax Deductible?

The Tax Deductible Mortgage Program For Canadians

Einar Lisborg, BA RHU CFP

Certified Financial Planner

Canadians pay a high amount of tax compared with other developed nations. Most of us don’t even mind paying tax if we get the services we pay for. Today however, we see our social safety net, universal health care, education and even emergency services straining and possibly failing if the media is to be believed. Government spending scandals are relatively frequent and it is my opinion that most Canadians have lost confidence in their elected politicians to manage our public finances.

It is literally raining taxes!

When you examine your own situation, how much of your gross income goes to pay the interest cost on your mortgage, car loan, credit cards, and other personal debt?  How much income tax do you pay?  When you add up both totals, you may find that you have less than 50% of your net income to live on.  To make matters worse, when you spend the amount left over, you may still pay 5% GST, 7% PST, and a host of other hidden taxes and duties.  It is literally raining taxes!

As a Financial Planner, I have been trained to teach people to save money, invest wisely and plan for the future. The problem is most people have more than enough trouble keeping up with the expenses of life, never mind having enough money to build wealth. As you can see, just paying your interest costs and taxes can take most of what you have.

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