Debt recycling gradually turns non-deductible home loan debt into tax-deductible investment debt. It suits some borrowers — get tax advice first.
How it works
- Pay down your home loan with savings
- Redraw the same amount through a split
- Invest it in income-producing assets
Things to weigh
- Investment risk and market swings
- Keeping loan splits cleanly separated
- Advice from your accountant
