“Loan split… $500,000 non-deductible home loan… put $100,000 into the loan, split it into $400,000 or $100,000 and then go invest $100,000 in shares”
PN
Pat Noll
Equity Mates Investing Podcast ·
“I could take the $100,000 of cash, put it onto my mortgage, therefore it is a $400,000 mortgage. Then I go back to the bank and I say, hey, give me that $100,000 back. And they put it back in my account as a separate loan.”
James Phelan · Australian Finance Podcast · Debt recycling explained: the loan split, tax traps and real risks | Owen Rask & James Phelan
Play from 13:24
13:24
Audio streams from the publisher’s own feed. Verbatim does not host or copy it.
What was described
make a lump-sum repayment on a $500,000 home loan, split out a $100,000 portion as a separate loan, redraw the $100,000 and invest it in income-producing assets
$500,000 home loan, $100,000 split, $40,000-$50,000 preferred chunk
Said nearby on the same subject
“We use $200,000 to pay down the home loan… then we take out a $200,000 loan and use that to invest… that $200,000 loan becomes tax deductible”
AG
Aidan Gullman
Financial Autonomy ·
“Offset account… loan limit minus what you've got in your offset account… $500,000 loan, $100,000 in savings… charged interest on $400,000”
PN
Pat Noll
Equity Mates Investing Podcast ·
“For non-deductible home loan portion, an offset is generally preferred over relying on a redraw precisely because it avoids any risk of mixing funds”
AG
Aidan Gullman
Financial Autonomy ·
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