Canadian HELOC vs US Mortgage

[Richard York]

Hello,

I'm a Canadian investor and with a short sale about to be approved. This is my first investment property and I've got a US lender that has pre-approved me for a mortgage with 30% down, 5yr fixed, 30 yr amot at 5.25%.

I also have a Canadian line of credit that I could use at 3.5%.

My question is which one to use? There are certain pros to going with the mortgage but the costs are obviously higher. The other thing that I'm not 100% sure of is if I can write Canadian interest expenses off of US income when filing US taxes.

Anyone else ever write off foreign financing expenses from US income?

Any advice would be very much appreciated!