We currently live in our owner occupier house and plan to move in to our investment property and then rent our owner occupier. Our current owner occupier has a small loan and investment has a big loan.
The investment property is secured by the owner occupier home.
If we refinance our current owner
occupier then transfer money to
investment property before we move in. Will we be able to claim the interest on tax?
Firstly, how can you possibly refinance your present home when it is being used as a security for another? Why should the bank agree to reduce its level of security?
Anyway, unless you have a genuine house-rental business, each property stands on its own for tax purposes.
Firstly, how can you possibly refinance your present home when it is being used as a security for another? Why should the bank agree to reduce its level of security?
Anyway, unless you have a genuine house-rental business, each property stands on its own for tax purposes.
How you restructure your loans is up to you. However you can't claim any more interest on your rented property (which ever property that may be) than the interest you are paying now on each loan. (unless interest rates go up).
It is the cost of borrowing money used to purchase a property that is deductible. As the property is being paid off over time, the cost of those borrowings can only go down. It can never go back up. (unless you borrow to for capital improvements or make repairs)
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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