Is loan interest on purchase costs & stamp duty deductible?

If you borrow over 100% of purchase costs, so that the loan covers all associated costs including government stamp duty, inspections conveyancing etc, is all of that interest deductible – or only the portion relating to the actual purchase price of the property?

I’m pretty sure that, as the entire loan is for the purpose of purchasing an income producing asset, then it is – but I’ve not been able to find a specific answer.

I also asked this question a few days back was given the same answer i.e. "yes". To move forward, i want to ask another related question:

I have read on this forum that some of the buying costs (like LMI) are deductible. So.....the question is.....if the LMI (and other deductible costs) are added on the loan, should I deduct only interest on the loan of those items or can I claim the costs of those items also? For eg.
My bank has added $6k LMI on my I/O loan....for which i will pay $336.6 interest (5.61%) per year. Now.....I have 4 options:
1. claim only the interest of $336.6 every year
2. claim only $1200 (20% of LMI) for 5 years
3. claim both the above
4. keep on claiming only interest ($336.6) every year unless I pay the principle LMI......and when I pay the priciple LMI ($6000), I start claiming $1200 for 5 years.

What is the correct option? is there any other option?:confused: