We are currently looking to upgrade our PPOR and keep this one as an investment property.
We have approximately $100,000 locked up in equity in this house at the moment and want to know if we can refinance this mortgage to release the equity to go towards our new PPOR and make the loan on the new investment property work better for tax deductions on interest payable.
No deduction for interest on the extra borrowing - because it would not have used to buy the original property.
No deduction for interest on the extra borrowing - because it would not have used to buy the original property.
+1 to Bruce for his reply.
Security for a loan is irrelevant for taxation.
if you consider the purpose the money is actually used for, you'll get the right answer for taxes.
You're welcome.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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