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Update to prev post.... There is a need with all loans to review the deductible use. In the example of the prop developer lets say he draws $35K of loan proceeds to make a paymnet to buy a motorbike. That is non-deductible. Thus that % of fees non-deductible too.

Terry a fair question. The "fees" relate to that facility and also its subsequent USE. This occurs with someone like a property developer as an example in almost every instance. Prior to a single bit of dirt being shoveled or a fence around the site a developer would get loan approval and fpay...

I would expect that the LMI is apportioned in same % as the refinance + new loan (deductible.) unless you obtain a private ruling which considers your prersonal circumstances that is favourable. Example : - Existing loan over MR $400K - New Loan for investing $100K LMI deductible would be...