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You have 2 separate loans. 1. $30k which was used for purchase a house 2. a $50k loan which was borrowed to park in a savings account. mixed purpose loan. When you repaid the $50k it would come off both loans in proportion. total loan 80k 30k loan = 30/80th 50k loan 50/80 So when...

My above post applies. I wouldn't recommend it. Also if you had withdrawn money with the interest non deductible and the other part of the loan is deductible then you have created a mixed purpose loan. When you make a repayment you cannot chose where it goes. It comes off both portions in...

Your broker should be careful. It is likely the interest on the $50,000 borrowed will not be deductible. You are borrowing to put into a savings account and once there it is no longer borrowed money. There is an argument that the money could be traced and there is a private ruling to back...