Debt Recycling: Turning Your Home Loan into a Long-Term Wealth Strategy

Could your home loan actually help you build wealth?

For many Australians the traditional approach is simple: pay off the mortgage first, then start investing. But that can mean losing valuable years of investment compounding.

Debt recycling is a strategy that can progressively convert non-deductible home debt into investment debt, while building a long-term investment portfolio.

What the full guide covers

• How debt recycling actually works
• An updated Australian case study
• The potential benefit of investing earlier
• Why getting the loan structure right matters
• The risks that need to be considered
• How financial planners, mortgage brokers and accountants work together on it

For the right client, it is not about having more debt.

It is about making debt work more efficiently.

Debt recycling involves investment risk and its tax treatment depends entirely on your circumstances. It is not right for everyone. Speak to a licensed financial adviser and your accountant before acting on it.