The order money moves when you start debt recycling, with a transfer log to record every tranche.
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With debt recycling, the order of steps decides whether the interest is deductible. Money invested straight from savings creates no deductible debt, so cash passes through the loan first, and the loan has to be ready before it does.
The checklist follows our guide on how to set up debt recycling, and works whether the first tranche comes from equity, savings, a bonus or an inheritance.
Use it for the first tranche and every one after. If your loan cannot split cleanly yet, start with our loan structure service.
Alex can look at how your loan is set up and tell you what would need to change. Free, no-obligation call, by phone or video.
Request a call with Alex →Money in an offset is your own cash, not borrowed money. Investing it directly creates no borrowing, so there is no deductible interest. Paying the cash onto a loan split and redrawing it creates a new borrowing, and deductibility then depends on what the redrawn funds buy.
No. A split can be paid down once and redrawn in stages as you invest. Interest is charged only on the amount redrawn. Whether to invest all at once or over time is a question for your financial adviser.
Onto the home split or its offset, not the investment split. Paying income onto the investment split reduces the deductible balance, which works against the strategy. Directing it to the home split reduces the debt that gives you no tax benefit.
The full ten-step setup, in the order we follow.
Read more → GUIDEStarting with offset cash, a bonus or an inheritance.
Read more → RESOURCEKeep the full paper trail for every split and tranche.
Read more →
1. Arranged a loan when our small business situation made it difficult to qualify.
2. Met requirements to have funding available by a specified date.
3. Understood my needs to setup debt recycling to allow tax structuring.
4. Communicated well throughout.
I would use their services again.
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Alex and Jess dealt with our investment loan and provided a top tier service. They kept us up to date and communicated every step of the process making it a seamless and smooth experience! Awesome work team we will definitely be back for future loans!
Jess from Kingfisher was outstanding. I couldn't fault her communication, expertise or dedication to finding the best loan for our situation. The entire process was seamless from start to finish. We'll definitely be using Kingfisher again in the future. A top-tier organisation.
