Hi, I am considering refinancing one of my investment loans, however there will be discharge fees of 1% of the original balance and a $500 deferred establishment fee. They also paid $900 dollars for LMI that would be payable if I paid out the loan.
Does anyone know if any of these fees would be tax deductable as it is an investment loan? Or do I just have to wear it? Thanks, Sue
Generally borrowing costs are amortised over 5 years or the life of the loan, whichever is shorter. The old borrowing costs on the loan you are paying out that you will currently be claiming over 5 years are amortised in full the year that you refinanced.