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Originally posted by pr13

if I wanted to tap into the home equity after maintaining the required 80-20 ratio

are there any tax implications with ccra ?

what interest is deductible from the mortgage (assuming the house is rental)

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The 80:20 ratio comes in to picture if you are buying a new rental home as with the new rules you have to have minimum 20% equity. For a house which was previously bought as a rental before the new laws or bought as a principal home and later converted to a rental may not need to maintain the 80:20 ratio.

Now coming back to your question. I am assuming that the house is presently a rental property and your have more than 20% equity in it and you are looking to take equity out up to 80% of the appraised value of the home. If that's the case, you can certainly take the equity out but CRA may be (not now but may be in future) interested in knowing what you would do with that equity. The reason being you are presently 'writing off' the interest portion of the mortgage payments and if you take the equity out, you can not use if for any personal use as after taking equity out, you would be 'writing off' interest portion on a higher amount. But, if you use the equity out for renovating the rental property or for investing in some other business venture, you can keep on writing off the interest but keep a proper paper tail as CRA has a habit of knocking on your door when you have absolutely forgotten about it.