As Matt said you won’t pay taxes until you are very low loan to value say sub 50% as you depreciate the building ( excl land ) by up to 4% a year. This is called CCA in accounting or ta speak aka capital cost allowance.
So if house is worth $500,000 and of that land is $200,000 then you can deduct up to $12,000 ( ie 4% of $300,000) per year from your net taxable income
Net income is gross income minus operating expenses minus interest on your mortgage
You will have to pay back this CCA tax savings when you sell. Kinda like an RRSP. Save taxes now but pay later.
Taxes on any capital gains are taken only on half the gain. The other half is tax free. That is where you get wealthy !!
Or by not selling, increasing the mortgage based on higher rents and values and then buying more assets. Thus, refi or sell is the big agonizing question after a while ! More on this “Agony and the Ecstasy - Sell or Refinance “ here
http://blog.reincanada.com/sell-or-refinance-the-agony-and-the-ecstasy