Let’s Talk

Schedule a call or contact us

Debt Recycling

What is Debt Recycling?

Debt recycling is a smart financial strategy that allows you to replace non-deductible home loan debt with deductible investment debt. It’s a powerful strategy for paying off your home sooner AND building an investment portfolio at the same time.

The Debt Recycling process involves using your home equity to invest in income-generating assets, such as shares or managed funds. Income from these investments is used to pay down your mortgage, while the value of your investments grows, accelerating your wealth-building efforts.

Click on the video below to see an “illustration” of debt recycling in action.

A simple illustration of a debt recycling strategy, reducing home loan debt and reborrowing to build investments tax effectively

Even if you start slowly, the power of Debt Recycling is in the compounding or acceleration over time. The more you pay off your home loan debt, the more you can borrow to invest. And the more you borrow to invest, the more tax savings and additional investment income. It’s a snowballing effect.

Debt Recycling goes to the next level if you participate in an Employee Share Scheme, have existing shares or managed funds, or even an investment property that you’re considering selling. Any of these can help you with a big initial debt recycle and immediate tax savings, which continue year after year.

Where to start?

At AGS Financial Group, we offer comprehensive guidance on debt recycling. Our experts can help with the full scope of the strategy, including mortgage reviews and split loan structuring, investment selection, tax-efficient planning, and ongoing management of your strategy and portfolio. So get in touch with one of our financial planners for a free, no-obligation consultation to see how debt recycling can boost your financial future.

Related News Articles

News - discover educational financial articles from AGS Financial Group

Five big business challenges for 2025

What are the five big challenges your business will face in 2025? We’ve summarised five of the most significant external factors that could affect your business.

How business loans can reinvigorate your small business

More Aussie small business are applying for long-term loans. But what are the best things to do with this new capital? We’ve got some ideas for how to get value from your funding.

Variations of Debt Recycling Strategies

Discover how debt recycling helps pay off your home faster and build wealth simultaneously. Explore variations of this powerful financial strategy today.

Debt Recycling – A Strategy for Every Market

With interest rates at elevated levels, achieving financial success may seem challenging. However, there are strategies that remain effective regardless of market conditions—one such strategy is Debt Recycling

Maximising the Benefits of Employee Share Schemes: Strategies for Financial Growth

Employee Share Schemes (ESS) are a valuable way for employees to share in the ownership of the company they work for, offering potential financial benefits beyond their regular salary. While owning shares in your employer can provide long-term growth, it’s crucial to develop strategies that maximise the financial opportunities available through your ESS.

Get in touch.

At every stage of your financial journey, AGS Financial Group provides the expert guidance you need to secure your future, all under the one roof.

Contact Us