Redraw & Tax Deductibility - What Every Property Investor Must Know

General information only — not financial advice. This content is intended as educational guidance. Consult a qualified financial adviser, mortgage broker, or legal professional before making financial decisions. See our full disclaimer.

General information only - not financial or tax advice. Consult a qualified tax adviser or accountant for personalised guidance on your investment property structure.

Frequently Asked Questions

Can I use investment property redraw for personal expenses?

Yes - but doing so destroys the tax deductibility of the redrawn amount. The ATO denies interest deductions on private-use borrowings. This is an irreversible contamination requiring careful apportionment.

What's the safest structure for an investment property loan?

Interest-only loan with a 100% offset account is typically most tax-efficient. Pay interest on the full balance (maximising deductions) while savings accumulate in the offset.

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