Borrowing For Personal Use
Record this when you withdraw borrowed funds from your credit account for non-investment purposes.
What you enter
| Field | Required | Description |
|---|---|---|
| Amount | Yes | Total amount borrowed for personal use |
| Date | Yes | When you withdrew the funds |
What happens
- Non-deductible principal increases by the full amount
- Interest on this portion is not deductible from this point forward
No brokerage balances change — the funds go directly to personal use.
Common questions
Can I later convert personal-use debt to investment debt? Not directly. The CRA considers that debt permanently non-deductible. You can pay it down and borrow fresh funds for investing instead.
What counts as "personal use"? Anything that isn't investing in income-producing assets: renovations, vehicles, consumer goods, paying off other debts, or TFSA contributions.
Learn more
- Mixed HELOC use — how personal borrowing affects interest deductibility
- CRA rules applied — the tracing principles behind this classification