No, you cannot claim mortgage interest relief against rental income if the mortgage was secured on your principal private residence. The loan must be directly used for the purchase, improvement, or repair of the rental property itself.
Since the mortgage in your case is secured on your private residence and not the rental property, the interest on that loan does not qualify as a deductible expense against rental income.
Key Points:
- Purpose of Loan: The loan must be for the rental property, not for your primary residence.
- Revenue’s Position: Only loans directly tied to rental properties qualify for interest relief.
- Alternative Financing: A mortgage secured on the rental property itself would qualify for relief.
