How debt recycling is built: loan splits, redraw, offsets and the order funds must move to keep your interest deductible.
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Debt recycling lives or dies on the loan structure. The strategy is simple in theory and unforgiving in the plumbing: a single contaminated redraw or a split set up in the wrong order can quietly cost you the deduction for the life of the loan. This category covers the practical build.
The guides here walk through the mechanics: how to set the strategy up step by step, why loan splits and separate sub-accounts matter, how the redraw contamination trap happens and how to make it impossible, and which home loan features you actually need before you start. This is the category for readers moving from research into implementation, or getting ready to work with a broker.
Structure sits alongside tax, because most tax problems in debt recycling start as structure problems. Where a deduction is at risk, the cause is almost always an account that mixed two purposes. When you want the splits built correctly the first time, this is where how we structure the loan comes in, and you can always start with a free estimate.
What to replicate at the new lender, what to document, and how a clean deductible split gets merged into a mixed-purpose loan by accident.
Read the guide →Loan Structure & SetupPractical GuideWhat loan splits are, how many you need for debt recycling, and why sub-account structure decides whether your interest stays tax-deductible
Read the guide →Loan Structure & SetupRisk GuideOne deposit into the wrong loan can void your interest deduction forever. How redraw contamination happens in debt recycling, and the setup that makes it impossible
Read the guide →Loan Structure & SetupChecklistFree loan splits, unlimited redraw, offset, portability: the home loan features that make debt recycling work, and the ones that quietly block it. Checklist by a licensed broker.
Read the guide →A separate loan account, with its own account number, that holds only the borrowing used to invest. Keeping it separate from your home loan is what makes the interest cleanly deductible.
Mixing personal and investment borrowings in one account, usually by redrawing investment funds for private spending. It can compromise the deduction across the whole split, which is why the setup order matters.
Structurally it is possible, but the split and tracing errors are costly and hard to reverse, so most people use a broker for the lending and an accountant for the tax.
Run the free estimate, or book a no-obligation call with a specialist debt recycling broker.
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