Mining Family Unlocks Debt Recycling Strategy to Build Wealth
THE CLIENT:
Toby is an underground diesel fitter in the mining industry, living in Brisbane with his family. After meeting with their financial planner, Toby and his partner were keen to explore debt recycling as a way to grow their share portfolio while simultaneously paying down their home loan.
THE CHALLENGE:
Debt recycling requires a specific loan structure that not all lenders can accommodate. Toby needed a Master Limit or Portfolio style product that would allow him to separate his home loan from his investment borrowings while keeping everything under one facility. With limited lenders offering true debt recycling solutions, finding the right product meant looking beyond the mainstream options.
OUR SOLUTION:
Working closely with our in-house financial planning team at Future Wealth Partners, broker Matt Evans identified the Master Limit facility as the ideal fit. This product allowed Toby to structure his lending in a way that supported genuine debt recycling, with his home loan on principal and interest repayments and a separate investment loan on interest only for flexibility.
THE OUTCOME:
Toby secured a competitive home loan with principal and interest repayments, multiple offset accounts, and cashout for renovations. He also established a 10 year interest only investment loan designed specifically for building a share and managed funds portfolio. The structure positions his family to grow wealth while reducing non-deductible debt over time. Property value sits at $1,230,000 with a loan of $660,000.
CLIENT QUOTE:
"Extremely helpful organisation, willing to take the time to not only listen but to advise on possible issues & provide solutions."
KEY STATS:
- Property value: $1,230,000
- Loan amount: $660,000
- 10 year interest only period on investment loan
- Multiple offset accounts established
- In-house lending, financial planning and accounting collaboration
Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information. The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Opinions constitute our judgement at the time of issue and are subject to change. Neither, the licensee or any of the Future Wealth Partners group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document. Before making a decision to acquire a financial product, you should obtain and read the product disclosure statement (pds) relating to that product. Past performance is not a reliable guide to future returns. The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue.
