Issue No. 026 / Debt Recycling Specialist · Melbourne

Pay off your mortgage ~10 years sooner and build an investment portfolio at the same time.

The Loan Operator helps Australian homeowners convert non-deductible mortgage debt into tax-deductible investment debt — systematically, with precision modelling and full transparency. No product pushes. No cross-sells. Just one specialty, executed well.

Free 30-min consult. No obligation. If you're not a fit, we'll tell you in the first 10 minutes.

01 Model
02 Restructure
03 Invest
04 Recycle
RBA CASH RATE · 4.35% ASX 200 · 8,147.20 10Y BOND · 4.21% MEDIAN MELBOURNE HOUSE · $960K AVG CLIENT TAX DEDUCTION Y1 · $14,280 RBA CASH RATE · 4.35% ASX 200 · 8,147.20 10Y BOND · 4.21% MEDIAN MELBOURNE HOUSE · $960K AVG CLIENT TAX DEDUCTION Y1 · $14,280
01 / The Strategy

What is debt recycling?

Most Australians spend 25 years paying down a home loan that offers no tax benefit. Debt recycling is a legal, ATO-recognised strategy that gradually converts that "dead" non-deductible debt into deductible debt used to build a long-term investment portfolio.

Done properly, the home loan reduces at the same speed — but each repaid dollar is redrawn and invested, creating deductible interest, portfolio growth, and annual tax refunds that accelerate the next cycle. Done poorly, it can expose you to unnecessary risk. The difference is execution.

FIG 01 — THE RECYCLING CYCLE ANNUALISED VIEW
Diagram showing how home loan repayments are redrawn and invested, generating tax deductions that reduce the home loan further HOME LOAN $650,000 non-deductible INVESTMENT LOAN $80,000 deductible · year 1 INVESTMENT PORTFOLIO ETFs · LICs · Shares dividends + growth ① PAY DOWN + REDRAW ② INVEST PROCEEDS ③ DIVIDENDS + REFUND ↻ the cycle repeats annually — typically 10–18 years to full recycle
02 / The Method

The Operator's playbook.

Five phases. Every engagement runs through the same sequence — because consistent process is how edge cases get caught before they become losses. You receive the full model, in writing, before any structural change.

→ 01

Discovery & financial map

WEEK ONE
We model your current position in full — existing loan structure, household cashflow, super balances, tax bracket, risk tolerance, and investment experience. No recommendations yet. Just a clear picture of where you actually stand.
→ 02

Scenario modelling

WEEK TWO
Three modelled futures: stay-the-course, conservative recycle, and accelerated recycle. Each includes 20-year projections for loan balance, portfolio value, annual tax position, and cashflow sensitivity to rate changes. You see the downside scenarios, not just the upside.
→ 03

Loan restructure

WEEKS 3–5
We refinance or split your existing facility into clean deductible and non-deductible sub-accounts. This is the step most DIY attempts botch — ATO rules around debt purpose attribution are unforgiving. We document everything for your accountant.
→ 04

Investment deployment

ONGOING
We don't select investments — you work with your financial adviser or an independent broker for that. What we do: ensure the deductible funds flow cleanly, the paper trail is bulletproof, and the mechanics support whatever investment thesis you're pursuing.
→ 05

Annual recycle review

YEARS 2+
Every twelve months we reassess — rate environment, portfolio performance, your life stage — and adjust the cycle pace. Tax refunds and excess cashflow feed the next tranche. The strategy stays live; it doesn't get filed and forgotten.
03 / How We Charge

Pricing, on the table.

Flat fees. No commissions on investment loans. Full refund if we determine the strategy isn't right for you after the first phase.

Most brokers hide their incentives. We publish ours — because if our interests and yours aren't aligned on Day 1, the rest of it is noise.

Initial 30-min consult Scope of strategy, honest fit assessment, three questions for your accountant.
Free
Full strategy engagement Discovery, modelling, restructure, first-year implementation. Paid upfront.
$2,800
Annual recycle review Every 12 months, for as long as you want us on the file.
$600/yr
Lender commissions on investment loans Where commissions are paid, we rebate 100% back to the client.
$0 retained
Full refund guarantee. If after Phase 1 (Discovery & financial map) we determine debt recycling isn't right for your situation, you receive a full refund of the $2,800 fee. No conditions. No exceptions. We turn away about four in ten enquiries for this reason — we don't need to bill you for a strategy that won't work.
04 / Results

Numbers that compound.

Aggregate outcomes across The Loan Operator's active client base. Past results don't guarantee future performance — but they demonstrate that when the method is followed, the math works.

N = 127 clients with ≥24 months engagement as at Q2 2026. Averages unweighted. Tax deduction figure assumes marginal rate 39% and RBA cash rate 4.35%. Payoff year uses accelerated-recycle scenario; stay-the-course clients excluded. Portfolio values reported at cost basis. Individual results vary materially with starting equity, income, and market conditions. Full methodology PDF available on request.
Avg. Yr-1 deductible conversion
$82K
Non-deductible debt converted to deductible within the first 12 months of engagement.
Avg. Yr-1 tax deduction generated
$14.28K
Deductible interest claimable in the first full tax year, based on current cash rate.
Avg. home loan extinguished by
Yr 16
Versus a 30-year standard term — with an investment portfolio running alongside.
Case Study 017 — Melbourne, VIC

Ben showed us the number that mattered: we'd pay $340,000 in non-deductible interest over the life of our loan. That reframed everything.

Household Two professionals, one child, combined income $285k
Home loan $720,000 remaining, 24 years to run
Strategy Accelerated recycle, 30% portfolio in Australian equities
Year 1 result $96k converted to deductible · $16,400 refund generated
Year 5 projection $340k deductible · portfolio value $428k
Modelled payoff Year 14 (vs. original Year 24)
05 / Qualification

Is debt recycling right for you?

This strategy isn't for everyone. Honest answer: we turn away about four in ten enquiries. Answer five questions below — in 60 seconds you'll know where you stand, and so will we.

Question 1 of 6
How much equity do you have in your home?

Your home value minus what you owe on your mortgage.

Question 2 of 6
What's your household taxable income?

Combined, if you're in a couple. The maths start working meaningfully above $135k.

Question 3 of 6
What's your investment horizon?

Short-term thinking will torch this strategy. Markets move sideways for years at a time.

Question 4 of 6
If your portfolio fell 30% in a market crash, what would you do?

Be honest. Leverage amplifies drawdowns — selling at the bottom is how this strategy fails.

Question 5 of 6
How stable is your income?

Two years of consistent income history is our baseline. Career transitions aren't the moment to leverage up.

Last step — get your result
Where should we send your qualification result?

We'll email you a short read of where you land plus a recommended next step. No sales follow-up loop; opt out any time.

We'll send one email with your result and a link to book if you're a fit. That's it. Your details are never sold or shared.

Ben Behar, principal broker at The Loan Operator
BEN BEHAR MFAA · Melbourne · est. 2018
Watch · 90 sec Who I turn away and why
06 / The Operator
Ben Behar
Principal Broker · Founder

Before founding The Loan Operator in 2018, Ben spent nine years inside two of Australia's largest lenders — long enough to see how the sausage gets made and why most broker-led recommendations are a function of commission structures, not client outcomes. He started The Loan Operator to do one thing, specifically, and well.

Every client engagement is handled personally. The book is deliberately capped at 12 new engagements per quarter — because proper debt recycling modelling takes 20+ hours per household, and volume-broker economics don't support that level of care.

Accreditation
MFAA Member 104872
Credit Licence
ACL 392284
Based
Melbourne, VIC
Clients served
340+ households
07 / Common Questions

Questions, answered plainly.

If your question isn't here, it'll be covered in the discovery call. There's no such thing as a dumb question when you're considering leveraging your home.

Structurally, yes — but debt recycling uses existing home loan repayments rather than new leverage. You're not increasing your total debt; you're changing the character of the debt you already pay down each month. That's a meaningful distinction both in risk and in how the ATO treats it.
The initial 30-minute consult is free. The full strategy model, restructure, and first-year implementation is typically a flat $2,800 — paid upfront, refunded in full if we determine the strategy isn't right for you. Ongoing annual reviews are $600. We do not accept lender commissions on investment loans placed through this service.
Every model we produce stress-tests the strategy against a +300bps rate rise scenario. The deductibility of investment interest provides partial protection — higher rates mean higher deductions — but the underlying portfolio must still perform. If the stress test doesn't pass for your household, we don't proceed.
Ideally, yes. We handle the debt side — the structure, the mechanics, the paper trail. Your financial adviser handles what you invest in. If you don't have one, we can refer you to three independent (non-commission-based) advisers we've worked alongside for years. We don't take referral fees.
Functionally, around $200,000. Below that, the cost of the loan restructure and the ongoing complexity start to outweigh the benefit. In practice, most of our active clients have $400k+ in usable equity and a household income above $180k. These aren't rules, but they're honest benchmarks.
Debt recycling is entirely legal and the principle — interest on borrowings used to produce assessable income is deductible — is established Australian tax law. The risk is execution: purpose-of-debt tracing must be clean. That's precisely what the structural work in Phase 3 is designed to guarantee. We provide full documentation for your accountant's file.
Next Step · No-obligation

Book a 30-minute strategy call.

We'll review your position, answer your questions, and tell you — honestly — whether this strategy suits your situation. If it doesn't, we'll say so.

Reserve your time

Tell us a little about your position and we'll confirm within 24 hours.

By submitting you agree to be contacted about a strategy call. No marketing follow-up. One reply, one email, that's it.

Thanks — we'll be in touch.

You'll hear back from Ben within one business day to confirm a call time. If it's urgent, call +61 3 9000 0000.