Mortgage interest deductibility and the bright-line test

Interest deductibility

From 1 April 2024, mortgage interest deductibility for rental properties will be phased back in:

80% deductibility in 2024 / 25

100% deductibility in 2025 / 26

For more information about mortgage interest deductibility visit IRD website

Bright-line test

The bright-line test for investment properties is   to be reduced to two years from 10 years, with retrospective effect from 1 July 2024.   This means that investment property acquired before July 2022 should no longer be subject to the bright-line test at sale.

Get in touch with us if you are considering selling your investment property to determine if the bright-line test applies.