Three moves, repeated until the mortgage is the small loan.
Split the loan
We restructure your mortgage with a separate investment split alongside the home loan. Clean separation is what keeps the interest deductible and your accountant happy.
Pay down, redraw, invest
Savings, bonuses and offset surplus knock down the non-deductible home loan. The same amount is drawn from the investment split and put to work in income-producing assets, chosen with your adviser.
Repeat and review
Each cycle shifts more debt from non-deductible to deductible. We review the structure and pricing every year through Rate Watch™, and adjust the splits as the balance shifts.
Powerful for the right household. Wrong for plenty.
Debt recycling rewards stable income, surplus cash flow and a decade-plus horizon. It punishes tight budgets and short timeframes, because you are investing borrowed money through market cycles.
Our job is the lending structure and the honest suitability conversation. The investment strategy itself belongs with your financial adviser and accountant, and we work alongside both.
You have equity or an offset surplus, secure income, a buffer you won't touch, and you already intended to invest for the long term.
Cash flow is already tight, your income is uncertain, you may sell or move within a few years, or a market dip would keep you up at night.
The first call costs nothing, and if the honest answer is "not yet", you'll hear exactly that, plus what would change it.
Hear from our happy homeowners.
What people ask about debt recycling.
What exactly is debt recycling?
A strategy that gradually replaces your home loan (interest not tax-deductible) with investment debt (interest generally deductible). You pay down a chunk of the home loan, redraw it through a separate split, and invest it in income-producing assets. Repeat over years, and the same total debt costs you less after tax while building a portfolio.
Is debt recycling legal and accepted by the ATO?
Yes. Deductibility follows the purpose of the borrowing, and borrowing to invest in income-producing assets is an established principle. What matters is clean structure: the investment borrowing must sit in its own split, never mixed with personal spending. That structure is exactly what we set up.
What are the risks?
You are investing borrowed money, so investment returns can be lower than the interest cost, and markets fall as well as rise. It suits stable incomes, a long horizon and a genuine buffer. It is not a way out of tight cash flow, and we will say so if that is what we see.
Do I need a financial adviser as well as a broker?
For the investment and tax side, yes: we structure the lending, but what you invest in and your personal tax position belong with your adviser and accountant. We regularly work alongside both so the loan structure matches the strategy.
Find out if your loan could be working harder.
A free 30-minute call with Nathan: whether debt recycling fits your situation, and the loan structure that makes it clean if it does.
Debt recycling involves investing borrowed funds and is not suitable for everyone. We arrange credit only; investment and tax advice should come from your licensed adviser and accountant.