Unlocking Wealth Through Debt Recycling: A Strategic Approach for Australian Homeowners

At its core, debt recycling involves the strategic use of home equity to invest in income-generating assets. The process entails paying down your non-deductible home loan and then redrawing the same amount to invest in assets like shares or managed funds. This approach effectively converts a portion of your home loan into an investment loan, the interest on which is typically tax-deductible.