HOMES AND MORTGAGES
Debt recycling practicalities
I think I largely understand the concept but : Was does it practically look like When you split the loan , do you get adirect debit on the new loan (the debt recycled portion) that has to be paid monthly / or how do you repay that loan only at the end (if selling the house or finishing doing that ) You can add increase the volume of that debt loan amount ? What do you actually have to pay it all off ? ( maybe I don’t really understand it ) Plus presumably you could just do it for a proportion of the loan if you felt after that that you weren’t keen to keep doing ?
2 Comments
2 days ago
Typically yes a new split will have its own direct debit and payment monthly.
You can increase it if you apply to increase the size of that loan, or if you apply for a separate one.
I wrote more about it in detail here: https://strongmoneyaustralia.com/debt-recycli...
You can choose to pay it off later, or keep the loan if you wish, just like a normal loan.
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