Debt Recycling

Looking for debt recycling advice?

At Bramelle Partners, we specialise in guiding you through the strategy of debt recycling also known as mortgage recycling. This innovative financial approach helps turn non-tax-deductible debt, such as your home loan, into tax-deductible debt, allowing you to build wealth while reducing your tax liabilities. Our expert team works closely with you to implement this strategy, ensuring it aligns with your financial goals and delivers long-term benefits.

What Is Debt Recycling?

Debt recycling is a powerful financial strategy that involves converting non-tax-deductible debt, such as your home loan, into tax-deductible debt. By borrowing against the equity in your home and investing in income-generating assets, you can reduce your home loan faster, save on taxes, and grow your wealth simultaneously. Alternatively you may be able to restructure you current debt with your family trust and company related debt to convert your non deductible debt and replace this with deducible debt. While it may sound complex, debt recycling is a straightforward and proven method for improving your financial position over time.

Benefits of Debt Recycling

When implemented correctly, debt recycling offers a range of benefits:

  • Pay Off Your Home Loan Faster: Use investment income and tax savings to reduce your mortgage more quickly.
  • Save on Tax: Claim tax deductions on the interest paid for investment loans.
  • Increase your borrowing capacity: tax deducible debt increases your borrowing capacity with lenders
  • Build Wealth: Diversify your portfolio with investments in shares, property, or other income-producing assets.
  • Maintain Your Lifestyle: Leverage the returns from your investments without sacrificing your standard of living.
Who Is Debt Recycling For?

Use this checklist to assess if debt recycling might be right for you:

  • Do you have a stable income to comfortably manage loan repayments?
  • Have you built up equity in your home?
  • Are you committed to a long-term investment mindset?
  • Can you tolerate risk and weather potential market fluctuations?
  • Do you have an existing family trust?
  • Do you have an existing company?

If you answered yes to these questions, debt recycling could be a suitable strategy to help you achieve your financial goals.

How Can Bramelle Partners Help?

At Bramelle Partners, we understand that every financial situation is unique. Our experienced team will:

  • Assess your current financial position.
  • Develop a customised debt recycling strategy tailored to your goals.
  • Provide ongoing support to help you manage risks and optimise returns.
  • Work collaboratively with you to ensure the strategy aligns with your broader financial and personal objectives.
Why Choose Bramelle Partners?

Bramelle Partners is not just an accountancy firm—we are your partners in achieving financial success. With our deep expertise and commitment to personalised service, we guide our clients every step of the way, ensuring they make informed decisions that deliver results.

If you’re ready to explore how debt recycling can help you grow your wealth and achieve financial freedom, contact Bramelle Partners today. Let us be your trusted advisors on the journey to a brighter future.

Frequently Asked Questions

  • What is the process of setting up a debt recycling strategy?

    Bramelle Partners assesses your financial position and current structure and develops a customised plan to convert non-deductible debt into tax-deductible debt. This typically involves borrowing against home equity or restructuring existing debt to invest in income-generating assets or restructuring your debt mix between your entities. We provide ongoing support to manage risks and optimise returns, ensuring the strategy remains effective.

  • How will debt recycling align with my long-term financial goals?

    Debt recycling can help you build wealth while reducing your home loan and tax liabilities. Through proper planning and having the correct strategy, you can increase your net wealth by having more available after tax income to invest. Bramelle Partners ensures your strategy is tailored to align with your financial goals and risk tolerance.

  • What happens if I want to stop or adjust the debt recycling strategy later on?

    Debt recycling is flexible, and Bramelle Partners can help you modify or exit the strategy if your financial situation changes. Adjustments may include pausing investments, restructuring debt, or repaying investment loans. We ensure your debt recycling strategy is reviewed annual or if there are any significant changes to your circumstances to ensure the strategy is still working for you. Our expert guidance ensures a smooth transition while minimising financial disruptions.

     

  • How will debt recycling impact my tax situation?

    Debt recycling allows you to claim tax deductions on interest paid for investment loans, reducing your taxable income. Tax savings can then be used to pay off your home loan faster and enhance your investment strategy. The goal is to turn your existing non deductible interest into deductible interest. Bramelle Partners ensures the process is structured correctly to maximise tax benefits while complying with regulations.

For a free consultation with our Director to see how we can help you grow your business please contact us