As we’re now into a new financial year, it is time to take stock of your finances, including your home loan. Whether you own your home or an investment property, this is the ideal time to assess your financial position, review your loan structure, and make sure your current mortgage is still fit for purpose.
Rates shift, life changes, and alternative loan products emerge. What suited you years ago might no longer. Reviewing your loan every two to three years is crucial for maintaining good financial health. Below is some general guidance, along with helpful links, to steer you through what to check this end of financial year.
Home loan health check: For all mortgage holders
Many borrowers lock in a loan and forget about it – but letting your home loan sit untouched for years could quietly erode your financial position. As part of your EOFY reset, ask yourself:
- Do I still need the features I’m paying for?
Offset accounts, redraws, cheque access – are you using them, or just paying for them?
- Has my financial situation changed?
Income, expenses, employment, family size – life moves fast. Your loan should reflect your current life, not a former one.
- When was my last property valuation?
Rising property values may have unlocked equity you’re not using – equity that could fund renovations, reduce debt, or improve cash flow.
- Am I satisfied with my lender’s service?
Delays, indifference, or poor communication are red flags. If your lender treats your business as a burden rather than a priority, it’s time to look elsewhere.
- Am I paying unnecessary fees or restricted from making extra repayments?
Redraw fees, account-keeping charges, and limits on extra repayments can add up or hold you back. Check if your loan offers flexibility without the hidden costs.
EOFY checklist for property investors
If you also hold investment property, you should go a step further and prepare your portfolio for tax time. Here’s a quick EOFY checklist to help keep you on track.
- Maximise your tax deductions
The Australian Taxation Office’s 2025 Tax Time toolkit for investors has a wealth of information about what tax deductions you can and can’t claim for your property investment.
Examples include:
- Interest on loans. You can claim interest paid on the amount borrowed, or a portion of it, that relates to earning assessable income.
- Borrowing expenses. These can include loan establishment fees, lender’s mortgage insurance, title search fees, costs for preparing and filing mortgage documents, and mortgage broker fees, among others.
- Repairs and maintenance. If you’ve replaced a worn-out fence or re-oiled the deck this financial year, you will most likely be able to claim it. Improvements and renovations are treated differently by the ATO.
- Body corporate fees and charges. You may be able to claim a deduction for body corporate fees and charges. Administration fees are usually deductable straight away, but capital works levies must be depreciated over several years once completed.
- Property management costs. Fees paid to a property manager for overseeing your investment can be claimed as deductions.
2. Document your rental income and expenses
Your tax accountant will need details about your rental income and expenses to process your tax, so make sure you have these ready by the end of the financial year.
Hopefully you’ve moved away from a shoebox of faded receipts to an online platform that allows you to store and manage your records effectively. There are all sorts of record-keeping tools out there that make it easier for property investors to keep records safe in one place.
3. Consider pre-paying expenses
If you’re expecting to be in a higher tax bracket this year compared to next, it might be worth pre-paying your investment property expenses like insurance or loan interest before June 30. That way, the tax deductions will fall in the current financial year.
You can find the 2024-25 tax brackets on the ATO website.
4. Ditch bad debts
If your tenants haven’t paid their rent, you may be able to write it off as a bad debt. This can reduce your taxable income, so it’s worth speaking to your accountant about it.
5. Plan for Capital Gains Tax (CGT)
Sold an investment property this financial year? You’ll need to plan for the Capital Gains Tax (CGT) liability.
Keep in mind that if you’ve held the asset for longer than 12 months, you may be entitled to the 50% CGT discount.
6. Don’t forget depreciation deductions
You can claim a deduction in value of depreciating assets, for example a dishwasher in your rental property.
If you haven’t already done so, get a quantity surveyor to prepare a depreciation schedule report for your investment property. This will outline the available deductions for the depreciation of the building and its fixtures and fittings. It’s another great way to save on tax.
7. Review your property’s performance and plan ahead
How did your property perform over the past 12 months? What was the rental income compared to previous years? What were the occupancy rates and maintenance costs comparatively?
If you have multiple investment properties, this may help you weed out the high-performing investments and draw your attention to those that need restructuring or further review.
Next, consider what your goals are moving forward? Maybe you want to get a second investment property, or renovate your current one to boost its rental return? If so, talk to us about your finance options.
8. Get an investment loan health check
With two cash rate cuts so far this year and a lot of interest rate movement, it’s a good time to get an investment loan health check.
The information discussed in this article is general in nature and you should always seek professional advice in relation to your individual tax circumstances.
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