Money transfer - assuming it isn't charity - is wealth creation, you are always getting something in return in exchange for that money. That something is increased wealth.

The only wealth created in this instance is the wealth you add to the pie when you use that loan to complete your house.

First, that $100K did not exist before I asked for it. It literally was created. Second, these aren't two unrelated events. I bought money after all.

if you piss that money away or burn it, all you have done is give money to someone else. The world is not richer as a result.

Actually, the bartender would be richer in this case. I bought money, that action alone increased my wealth the same way buying a car increases my wealth. I have something now that I didn't have before. What I do with that money is really irrelevant, in the same way that how fast I drive the car is irrelevant.

If I physically burned the money, sure. But the same is true if I physically burn my house down. Of course this too adds to the economy.

Again, conflating wealth to some sort of "good" is a near impossibility, since it devolves into opinions of value and worth.

My wealth is now decreased? Hello? I have a house that I didn't have before! It takes some strange reasoning to assume my wealth is decreased because I'm paying interest on a loan.