A split loan (bank 1) paid for the deposit 10%, stamp duty, buying costs and initial quick reno on an IP. The interest on that split should be tax deductible (!?). Before the first rent comes in, there's going to be some initial interest payments on the major part of the loan (bank 2 with 90%). Given that the split still has some money left in it, can I use it to pay the interest on the major part of the loan (90%) with bank 2? Am I mucking around with the deductibility of the original use of the split? Is that new interest on the repayments deductible? I'm assuming that I can't use the split to pay off the deposit (10%) part! I'm sure Terry has covered it, but I can't find it and suspect I'm using the wrong terms!