Not all real estate debt is created equal. In Canada, good debt may help you acquire an income-producing property, improve its value, or build equity when the numbers remain sustainable. Bad debt can leave you overleveraged through unaffordable payments, weak rental income, high carrying costs, or speculative decisions. This guide explains the difference, highlights the cash-flow test, and encourages investors to account for interest, taxes, insurance, maintenance, vacancies, and rate changes before borrowing. Use these principles as a starting point and seek personalized advice before making a financing decision.
Continue to full article
