If I own a property with my partner and refinance this property to buy that person out, would the interest on the new line of credit be deemed tax deductible? The property in question is not an investment property, it is my PPOR. The reason I even ask this question is that this property is the security for an equity home loan and a line of credit which have been used to buy several investment properties. I do not have the cash to simply buy the person out, and if I were to sell this property, I would probably lose the investment properties as the the banks would likely call in the outstanding loans on the IP's. Does anybody have an answer on this one?