I have a split loan against my ppor. Portion A has been used to purchase dividend shares so interest is deductible. Portion B is ppor, so non deductible. What happens when I refinance to another bank? If I keep both portions with the new lender, would portion A still be deductible? Or is it considered to be paid off and re-borrow?
A deductible loan that is refinanced for no more and not less should retain deductibility. You will need to demonstrate the continuity of course so make sure you retain statements since after refinance the old loan account may not be available and then you cant prove how the borrowed funds were used.
Would it be sensible / wise to ensure the refinancing is also split to demonstrate ongoing traceability?
It would be wise to ensure the old loan/s are both split exactly as they are now. If any new funds are to be borrowed this should create a third split if it is for a new purpose.