# Instrest on condo down payment



## rassmy (May 7, 2010)

I am planning to buy a new condo for investement, the closing date is about 2 years from now. I used my HELOC to pay the condo down payment, the HELOC is for my primary residence. 
My question is that can I claim the loan intreset in my tax return, although the condo is not rented yet (it is still under construction), and it is not generating iany ncome yet.

Thanks for your reply.


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## MoneyGal (Apr 24, 2009)

Generally speaking, yes; you can deduct the costs. Read this CRA circular for more information. These are what are called "soft costs" - you should search the document for that phrase. 

http://www.cra-arc.gc.ca/E/pub/tg/t4036/t4036-e.html#P342_31524


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## rassmy (May 7, 2010)

thanks for your reply


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