I read a similar post about renting out a PPOR, but could not quite apply it to my situation. I took out a loan of $280,000 for my first property just over 2 years ago and lived in it for 1.5 years. I have been renting it out since January (and have since been living in another house which I do not own) this year and have made approx $15,000 in extra payments on the loan since it has been rented out (and approximately $30,000 extra repayments during the time it was my PPOR) as a redraw facility is available with the loan. I think I am correct in assuming that the interest paid on the loan since Jan this year is tax deductable? However is there any way that part of the initial fees of the loan paid in 2007 are part deductable (considering the deductions on these are calculated over 5 years). Also, are there any deductions on the extra repayments made this year and if so, is there any way I can claim deductions on the extra 30,000 paid on the loan prior to renting out my PPOR?