Loan establishment and mortgage broker fees, lender's mortgage insurance billed to you, a valuation the lender requires, title search fees, the cost of preparing and filing the mortgage documents, and stamp duty on the mortgage.

The loan contract and its date, the invoice for each fee, the stamp duty receipt for the mortgage, and what each part of the loan paid for.

Can you claim a loan's fees and stamp duty on a rental?

Q: Which costs are not borrowing costs?

Stamp duty on buying the property is a capital cost, so it goes into the property's cost base. Legal fees for the purchase are the same, and interest is claimed on its own.

Q: What does it look like in dollars?

In the ATO's example, $800 stamp duty on the mortgage, $500 in establishment fees and a $300 valuation make $1,600. It is over $100, so it is claimed over 5 years, and the first year's claim is $318.07.

Q: What if the loan ends early?

The balance is claimed in the final year, the year the loan is repaid before 5 years or before the end of its term.

Published 19 Oct 2026

Yes, but over 5 years, not all at once, unless the total is $100 or less. If the loan is shorter than 5 years, the fees are spread over its term. Only the part of the loan used for the rental counts. This is the law as read on 19 October 2026.

What is the rule?

The costs of taking out a loan to buy a rental are claimed over 5 years, or the term of the loan if that is shorter. If a year's borrowing costs total $100 or less, all of them are claimed that year. It is section 25-25 of the Income Tax Assessment Act 1997, and the ATO explains it in Borrowing expenses.

Which costs count?

The ATO lists the costs of getting the loan:

loan establishment fees and mortgage broker fees
lender's mortgage insurance billed to you
a valuation the lender requires for approval
title search fees the lender charges
the cost of preparing and filing the mortgage documents
stamp duty on the mortgage

Which costs are not borrowing costs?

Stamp duty on buying the property is a capital cost, so it is not claimed here. It goes into the property's cost base and lowers the capital gain when it is sold. Legal fees for the purchase are the same, and interest is claimed on its own.

What does it look like in dollars?

The ATO's example is Peter, who takes out a 25 year loan on 3 July. He pays $800 stamp duty on the mortgage, $500 in fees and a $300 valuation, which is $1,600. His $12,000 stamp duty on the property's transfer goes to the cost base.

The $1,600 is over $100, so he claims it over 5 years from the loan date. His first year, from 3 July to 30 June, is 363 of the 1,826 days, which makes $318.07. A loan taken out part way through a year claims less in its first year.

What if the loan ends early?

The balance is claimed in the final year. That is the year the loan is repaid, if it is repaid before 5 years or before the end of its term.

What if part of the loan is for something else?

The cost is claimed only for the part used for the rental. In the ATO's example a $209,000 loan buys a $170,000 rental and a $39,000 car, so the car's share of the fees is not claimed.

What should I keep?

The loan contract and the date the loan was taken out.
The invoice or statement for each fee, and the stamp duty receipt for the mortgage.
What each part of the loan paid for.

On PropRetire the rental property tax calculator works the tax a rental adds or saves from its rent and deductions, and is loan interest deductible covers what a loan paid for.