If I have available redraw in my owner occupied mortgage and I draw those funds out to purchase an investment property, will the interest on funds that have been drawn to purchase the investment property be tax deductible against the rent of the investment property, as the purpose of redrawing those funds from my OO loan was to purchase the investment property?
Hi @Mihi,
Good news Mihi, yes!
You can claim a deduction for the portion of interest that relates to the investment property. Please see Rental and holiday home deductions.
All the best :)
Hi @Mihi,
Good news Mihi, yes!
You can claim a deduction for the portion of interest that relates to the investment property. Please see Rental and holiday home deductions.
All the best :)
Thankyou so much for your help.
I just wanted to clarify that I can purchase the rental property outright with funds from my owner occupied mortgage and still claim all the same expenses that I would be able to if I took a new seperate investment property loan for the purpose of purchasing the rental property. many thanks in advance for your help.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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