Mortgage Insurance

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From: Warren Sichter


Is mortgage insurance considered to be a loan expense (as in the PIA software)& as such is it deductible. I have not been able to find info on this at the ATO website.
 
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Reply: 1
From: Mark Petterwood


Hi,

I'm not an accountant but my Accountants have told me that Mortgage insurance is considered as part of your borrowing expenses and thus can be claimed proportionately over 5 years or the life of the loan which ever is lesser.

Funny thing about mortgage insurance is that it sometimes reduces your weekly after tax cost - interesting bit of trivia.


Regards


Mark
 
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Reply: 2
From: Simon .


Mark is right. LMI is a borrowing expense.

Simon Macks
Mortgage Hunter
0425 228985
 
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Reply: 3
From: Dale Gatherum-Goss


Hi Warren

For what it is worth, the Section of the tax act involved is S. 25-25 of the 1997 tax act

Have fun

Dale
 
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