Using Your Home Equity to Invest? Financial Planners Are Doing It (Here’s How)

Can you use your home equity to invest?
Is debt recycling worth it?
Do financial planners really do this for themselves?

‍
Short answer: Yep. But as always, it depends on your situation.

More and more financial planners are helping their clients build wealth faster, not by saving harder, but by using what they’ve already got: home equity.

It’s called debt recycling, and it's gaining traction with investors who want to turn their mortgage into a tool for growth.

What Is Debt Recycling?

If you've never heard of it, you're not alone. So, what is debt recycling and how does it work in Australia?

Debt recycling is a strategy where:

• You pay down your non-deductible home loan,
• Then borrow back that equity to invest in income-generating assets (like shares or managed funds),
• Which makes that portion of your debt tax-deductible.

It’s like recycling your repayments turning "bad" debt into "good" debt, and using it to create long-term wealth.

Can I Use My Mortgage to Invest?

Yes, if you’ve got sufficient equity and a solid investment strategy. Financial planners and brokers work together to set it up smartly, so as you reduce your home loan, your investment loan grows, and so does your wealth potential.

If you’re going to pay down your mortgage anyway, why not put that equity to work?

‍

We work closely with planners who get it: they help clients manage the strategy; we help make the finance side seamless.

Is It Right for You?

Like any strategy, debt recycling isn’t one-size-fits-all. But if you're:

• Sitting on decent equity,
• Actively paying down your home loan,
• And interested in investing for the long term,

then it's worth a chat with one of our brokers.

‍

Debt recycling can be a smart way to grow your wealth while reducing your home loan. And as always... It starts here.

‍