Housing loan in australia

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Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2013 my husband is in australia. he wants to buy a house in australia by taking a housing loan. can any one please guide me regarding income tax benefit in australia. how can i get a deduction of interest and repayment of housing loan?

CA Ankit Oberoi

CA Ankit Oberoi (Expert)
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15 April 2013 If you have a loan, you are limited to claiming interest on the loan value before any other drawings. That is, the balance of the loan that was originally used to buy the property.
For example, you bought the home with a $400,000 loan and paid back $100,000 of it over time. Then you redraw $50,000 to buy a new car. Although your loan is $350,000, you can only claim interest on the $300,000 that relates to the original purchase.
You can help get around this issue by using an investment loan offset account.