Borrowing to invest - proving funds used solely for income generating
Quick question for my situation here. I recently refinanced my rental mortgage to obtain 100k cash because I thought I needed the extra funds to close a pre-construction property. However, at the end I was able to qualify for the mortgage amount I needed for the pre-con.
At this point, can I invest the 100k and deduct the mortgage interest? Would the CRA be critical because I also purchased a property in the same tax year? What can I do to avoid potential challenges? Thank you in advance!