Loan interest and apportionment for rental property loans
Interest is often the single largest expense for a residential investor. The complication is that loans frequently end up mixed-purpose — refinanced, redrawn, or partly used for private spending.
Practical checklist
- Original loan amount and start date
- Loan purpose (purchase, refinance, renovation, mixed)
- Annual interest statement from your lender
- Records of every redraw and what it was used for
- Offset account balances and movements
- Investment vs private portions
Common mistakes
- • Claiming interest on the full loan when part was redrawn for private use
- • Missing the annual interest statement
- • Treating an offset account like a redraw
How the app helps
- • A loan tracker with mixed-purpose warnings
- • Fields to record investment vs private portions
- • Reminders to attach the annual interest statement
Frequently asked
Frequently asked questions
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