My friend told me if I refinance my existing place and cash out for the deposit of new place, the difference of increased loan amount is not tax deductable.i.e. If the existing loan is 200K, after refinance and turn it into IP with 300K loan. The interest of 100K loan is not tax deductable. I can only claim the interest from 200K in the end of…[Read more]

Thanks for the advices.I must go for other lender for Refinacne with Cash out option because I'm using Onedirect won't accept any variations to existing loan.The reason for refinance is to ensure to have enough cash for new own-occupied property.It sounds wiser to have two separate loans. One is refinance of the existing loan and the other for…[Read more]

[/quote] If you went to your local bank and asked this same question; what they would tell you is to bring this loan over to them and then they will allow you to take up your 2nd loan using your first home as security – X-cross. A big NO NO! How would you go about this problem? [/quote]Hi Michael,I have a similar situation and have to change to…[Read more]