Turn your mortgage into a tax deduction

Most people think of their mortgage as a financial burden. But with the right strategy, you can transform part of your mortgage into tax-deductible debt, put more money back in your pocket at tax time, and grow an investment portfolio.

Ready to explore debt recycling?

Contact ChadTax today to see how this strategy could work for you.

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What is Debt Recycling?

Debt recycling is a tax strategy that converts your non-deductible home loan interest into deductible investment debt.

How it works

  1. Use extra cash (such as savings or your offset account) to pay down part of your home loan.
  2. Redraw the same amount and invest it in income-producing assets, such as shares or an investment property deposit.
  3. The interest on this portion of the loan is now tax deductible because the funds are used for investment purposes.

This approach is fully accepted by the ATO, provided it is structured correctly.

This information is general in nature and does not take into account your personal objectives, financial situation or needs. Consider seeking personalised advice before acting.