The Mortgage Maze
Tips for both First Home Buyers and seasoned investors.
Richard Ferguson, a Sydney-based broker with more than 27 years experience in the broking industry discusses a wide range of topics designed to inform and empower.
The Mortgage Maze
Debt Recycling - does it work?
Debt recycling is a sophisticated financial strategy used by Australian homeowners to transform non-deductible mortgage debt into tax-deductible investment debt. The process typically involves using home equity to fund the purchase of income-producing assets, such as shares or property, which then generate returns to accelerate mortgage repayments. By splitting loans into separate accounts, borrowers can maintain the clear records required by the ATO to claim interest deductions. This method aims to build long-term wealth and achieve a debt-free status sooner without necessarily increasing total liabilities
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