Rental Property Loan Interest Expense

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(I'm new)I'm new

6 Feb 2022

My residential house has a loan, with an offset account.

If I take money out from offset account and use the funds to buy a rental property, there will be additional interest charged on my home loan. I understand that these additional interest will not be deductible in rental operation.

Alternatively, if I increase my home loan amount, for example, open a sub-account, and use the new loan funds to buy a rental property, can I claim the interest charged on new loan account as deduction in rental operation?

Thanks.

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