EOFY Mortgage Health Check: 7 Things to Audit Before 30 June 2026
30 June is more than a tax deadline for property investors and homeowners. It is a practical checkpoint to review your loan rate, investment property records, offset usage and finance structure before the new financial year begins.
For investors, some eligible expenses or permitted prepaid interest may need to satisfy ATO rules before 30 June to be relevant to the 2025–26 financial year. For other borrowers, an EOFY review is about entering 2026–27 with a loan structure that better suits their goals. At KM Financial Service, the weeks before EOFY are when Kris Menon and the team work through this exact checklist with clients, ensuring nothing is left on the table before the financial year ends. Here are the seven things worth auditing on your mortgage before 30 June 2026.
Key date: 30 June 2026 marks the end of the 2025–26 financial year. Eligible investment-property expenses and permitted prepaid interest must meet the applicable ATO rules to be claimed in that financial year. Speak with your accountant before taking any tax-related action.
The 7-Point Mortgage Audit
1. Check Whether Your Rate Still Reflects the Market
With the RBA cash rate at 4.35% following three hikes in 2026, and lenders still competing aggressively for new customers, the gap between what loyal borrowers pay and what the market currently offers has widened. If you haven't had a home loan review in the last 12 months, there is a reasonable probability that your rate has drifted. Existing borrowers can sometimes pay more than new customers if they have not reviewed or renegotiated their rate for some time.
2. Confirm Your Investment Loan Records Are Clear
For property investors, interest on funds borrowed for an income-producing rental property may be deductible, while principal repayments are not.
If part of the loan has been used privately, including through redraw, the interest claim may need to be apportioned.
Before EOFY, collect your annual loan statements and provide them to your accountant so they can assess the deductible interest and identify any mixed-purpose loan use.
3. Consider Pre-Paying Investment Property Loan Interest
In some eligible investment-property circumstances, prepaid interest may be deductible in the current financial year under ATO rules. Speak with your accountant or registered tax adviser before acting. Your accountant can confirm whether prepaid interest may be relevant to your circumstances and whether your loan's terms permit early interest payments.
Also Read: How to Structure Investment Loans for Portfolio Growth
4. Audit Your Offset Account Balance and Usage
An offset account reduces the principal on which interest is charged daily, making it one of the most powerful features of a variable home loan. But many borrowers have offset accounts that are underutilised: salary doesn't arrive there first, or funds are split across multiple accounts instead of being concentrated in one offset. Before 30 June, review where your offset account balance sits relative to your loan balance. On a variable home loan rate of approximately 6.5%, every $10,000 held in an offset account could reduce interest costs by around $650 per year. Actual savings depend on the loan balance, interest rate, and how the account is used. If your offset is underutilised, a simple cash flow adjustment before EOFY can make a meaningful difference to the interest charged from 1 July forward.
5. Review Whether Your Loan Structure Still Matches Your Goals
A loan structure that suited you two years ago may not be the right fit for 2026–27.
The most common mismatches we see at KM Financial Service are:
- Owner-occupiers holding interest-only loans may reduce non-deductible debt faster when principal and interest repayments are made.
- Investors whose repayment structure no longer suits their cash flow goals or investment strategy may wish to review their options with a broker and seek separate tax advice.
- Borrowers with cross-collateralised loans who want to sell, refinance, or access equity from one property without affecting another.
The EOFY period is the right time to flag these mismatches with your broker because restructuring timelines vary by lender and borrower circumstances, so it is worth reviewing your options well before EOFY.
6. Collect and Verify All Claimable Borrowing Expenses
For eligible investment-property loans, certain borrowing expenses may be deductible beyond interest, subject to ATO rules and your individual circumstances. Speak with your accountant or registered tax adviser to confirm which expenses may be deductible in your situation. Examples of borrowing expenses may include loan establishment fees, Lenders Mortgage Insurance (LMI), title search fees, costs associated with mortgage documentation, and some other loan-related expenses. The deductibility and treatment of these expenses depend on individual circumstances and current ATO rules. Speak with your accountant or registered tax adviser for advice specific to your situation. Ensure your records are organised before 30 June and that your accountant has the full loan settlement statement to claim the correct amounts.
7. Check Your Pre-Approval Status and Whether It Reflects Current Conditions
If you obtained a home loan pre-approval earlier in the year and haven't yet found a property, check its status before 30 June. Many lenders issue pre-approvals that are valid for around 90 days, although timeframes vary between lenders. More importantly, three RBA rate hikes in 2026 have changed serviceability thresholds, meaning a pre-approval issued in January may no longer reflect what the same lender will offer you today. Your assessed borrowing capacity may be lower, or conversely, a more favourable lender may now suit your profile better. Renewing or rechecking your pre-approval before 30 June ensures any property purchases in July or August start from an accurate, current position, not a stale figure from a different rate environment.
How KM Financial Service Runs the EOFY Review
At KM Financial Service, Kris Menon and the team conduct EOFY mortgage health checks for clients across Australia. As a trusted mortgage broker Sydney borrowers rely on for home loan guidance, the team helps clients review their lending position before the new financial year begins. Backed by 400+ 5-Star Google Reviews and 400+ 5-Star RateMyAgent Reviews, KM Financial Service has built a strong reputation for helping borrowers make informed home loan decisions. The review covers loan structure, offset utilisation, refinance considerations, pre-approval currency, and the loan records borrowers may need to discuss with their accountant. With 20+ years of mortgage broking experience, $108 million in annual loan settlements, and access to 50+ lenders, KM Financial Service brings both the breadth of market knowledge and the specific client-level detail to make the EOFY audit genuinely useful, not just a generic checklist.
Many of the actions above take less than one conversation to initiate. Some, like pre-paying investment loan interest or restructuring a loan, require an accountant and broker input. The time to start is now, not 28 June, when the deadline is pressing and lenders are managing EOFY volumes.
Frequently Asked Questions
FAQ: Can I claim the interest on my home loan as a tax deduction?
Answer: Only if part of the loan relates to an income-producing purpose such as an investment property or home office (in specific circumstances). For a standard owner-occupied home loan, interest is not tax-deductible. Interest on funds borrowed for an income-producing investment property may be deductible, subject to ATO rules and individual circumstances. If you have a mixed-use loan such as a redraw used for both personal and investment purposes, only the investment-related proportion is claimable. Your accountant can confirm the deductible split for your specific loan.
FAQ: Is it worth refinancing before EOFY, or should I wait until July?
Answer: Refinancing timelines vary depending on the lender, application complexity, and settlement requirements. If you initiate the process now, settlement may fall in early-to-mid July, meaning any new loan structure or rate would apply from the start of the 2026–27 financial year, depending on lender approval and the option selected. For investment property loans, the timing also affects which year's deductions the refinancing costs fall into. KM Financial Service can help you compare available options and understand the timing considerations relevant to your circumstances.
FAQ: What documents should I have ready before 30 June for tax purposes on my mortgage?
Answer: For investment property owners: annual loan statement showing interest paid, loan settlement statement (if purchased this year), LMI premium documentation, mortgage broker fee receipts, and any prepaid interest confirmation. For owner-occupiers with plans to refinance: current loan statements and rate confirmation in writing from your lender. Your accountant will advise on specifics; having the documents ready before 30 June means no scramble after the deadline.
FAQ: What happens if my fixed-rate loan expires around EOFY? Should I act now?
Answer: It may be worthwhile reviewing your options before your fixed term expires, as lender processes and timelines can vary. When a fixed rate expires, most lenders automatically roll borrowers onto the standard variable rate, which is typically one of the least competitive products on the market. Starting the rate review before your fixed term ends gives you time to either renegotiate with your current lender or refinance without time pressure. KM Financial Service tracks fixed-rate expiry for clients and initiates this conversation.
The Clock Is Running: Use the Time Well
The EOFY mortgage audit is one of the highest-return conversations a borrower or investor can have in June. A rate that is 0.5% above the market, an offset account that isn't being used well, or an investment loan structure that doesn't align with your tax position; these are each worth real money annually, and each can be addressed before 30 June if the review starts now. After 30 June, some of those windows close for 12 months.
Book your free consultation with KM Financial Service; call 0402 879 531. Kris Menon and the team work through these key EOFY considerations with clients, helping them review their home loan position before the new financial year and understand which lending options may suit their circumstances.
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