SearchDeductibility of break fees
Karen asks:
(updated on Friday, May 26th 2017)
Are mortgage break fees on the sale of a rental property deductible?
Our Experts Answer:
Yes, mortgage break fees are deductible - even when the property is being sold - but the timing of the deduction can differ.
If the financial arrangement is terminated - ie: the loan is repaid or refinanced - the fee is deductible when incurred. But if the financial arrangement continues - eg: a fixed rate is broken but the loan is not repaid - the break fee must be amortised over the remaining term of the loan.
| Select Home Loans | 4.29 |
| TSB Special | 4.34 |
| ICBC | 4.39 |
| HSBC Premier | 4.39 |
| Heartland Bank - Online | 4.40 |
| China Construction Bank Special | 4.45 |
| SBS Bank Special | 4.55 |
| Kainga Ora | 4.57 |
| Co-operative Bank - First Home Special | 4.75 |
| Kiwibank Special | 4.85 |
| AIA | 4.85 |
| Select Home Loans | 4.86 |
| Heartland Bank - Online | 4.90 |
| TSB Special | 4.99 |
| ICBC | 5.09 |
| HSBC Premier | 5.15 |
| SBS Bank Special | 5.19 |
| China Construction Bank Special | 5.19 |
| Kiwibank Special | 5.19 |
| AIA | 5.35 |
| Co-operative Bank - Owner Occ | 5.35 |
| First Credit Union Special | 5.45 |
| Select Home Loans | 5.20 |
| TSB Special | 5.75 |
| Kiwibank Special | 5.79 |
| HSBC Premier | 5.89 |
| ICBC | 5.89 |
| SBS Bank Special | 5.95 |
| BNZ - Classic | 6.19 |
| Resimac | 6.33 |
| China Construction Bank Special | 6.35 |
| Westpac Special | 6.39 |
| Kainga Ora | 6.43 |
| Select Home Loans | 4.09 |
| Heartland Bank - Online | 4.10 |
| Pepper Money | 4.49 |
| TSB Special | 4.79 |
| Liberty | 4.84 |
| Kiwibank Special | 5.00 |
| ICBC | 5.25 |
| Kainga Ora | 5.43 |
| China Construction Bank | 5.50 |
| Kiwibank | 5.50 |
| Kiwibank - Offset | 5.50 |
