Debt recycling is a wealth creation strategy
Debt recycling may help you repay your home loan sooner while building investment wealth for your future.
Debt recycling may help you repay your home loan sooner while building investment wealth for your future.
You might think that because you have a home loan, you don’t have the capacity to also build an investment portfolio. However, Debt Recycling is a strategy that allows you to invest in shares or other assets and repay your home loan sooner.
Debt recycling involves borrowing against the equity you have in your home to invest – and using the returns from that investment as additional payments on your mortgage. Essentially, it turns bad (non tax-deductible) debt into better (tax deductible) debt as an investment loan. It also helps you pay off your home loan sooner. What’s more, you can invest in shares or other assets outside of your home to boost your wealth.
Debt recycling works well if you use a loan facility that allows master limits. Jake, Milestone Lending broker, explains how a master limit works.
Debt recycling can help you:
Watch Andrew Boulds, Senior Financial Planner from Milestone Financial discuss the dual goals of repaying your home loan sooner and investing to build wealth through Debt Recycling.
There are only a few lenders who have specific loan products that allow you to have a facility that can easily manage the debt recycling strategy. Contact Milestone Lending today to see if this strategy could help you achieve your wealth goals.
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