Hi I need advise to make sure my loan is 100% tax deductable. I have just signed a contract for my 1st IP and would be topping up my loan with my existing lender of my PPOR to fund 10% deposit on the IP. Current Loan (PPOR) - $193K Estimate Cost = $325K Purchase Price of IP = $320K 10% Deposit = $32K I have 10 business days to submit 10% deposit but my existing lender has not even started the process of valuation and top up of my loan. I do have have cash to pay for 10% deposit but then if I pay it that way, I think it will not be tax deductable. Original idea is to fund 32K from the top up amount of my existing loan. As time is short rather than waiting for top up of 32K to go through, is their any way I can pay 32K now (extra cash in offset of my existing loan) and at the same time request existing lender to top up my loan to make new separate account 32K IO loan. I want to settle new loan and dont want things to fall off due to delay with my existing lender. If i pay from my pocket how will I justify ATO that top up was to fund IP for deductions. They might ask you already funded IP with your own money and top up was done later on so it was not used directly to fund IP. So question is what sort of arrangment I can make so that I have 100% tax deductability where my existing lender is taking time to top up my loan. Please advise.