Unpack Property
Loan - Tool 04

Interest Rate Shock Tester

See what your repayments look like if rates rise 1%, 2% or 3%. Banks stress-test new loans at +3%, now you can too.

  • About 1 minute
  • Rates verified September 2026
  • Free, no sign-up

The loan

Variable rate today. Stress test adds +1%, +2%, +3% buffer.

Your household

Used for the 30% mortgage-stress benchmark.

How to show it

Show repayments per

Repayment if rates rise 3%

$5,354/mo

At 10.20%, the rate banks test new loans at, that is $1,282 more a month than today ($15,379 a year). An estimate based on these inputs.

Today at 7.20%
$4,073/mo
Increase
+$1,282/mo
Share of income at +3%
53.5%

Today's repayment

At 7.20% you'd pay $4,073/month - about 40.7% of your gross monthly income. Mortgage stress is commonly defined as spending more than 30%.

Repayment at each rate bump

What you pay today and at +1%, +2%, +3% above current rate.

Repayment, increase and share of gross income today and at each rate rise
ScenarioRateRepaymentIncreaseShare of income
Today7.20%$4,073/moBaseline40.7%Mortgage stress
Rates up 1%8.20%$4,487/mo+$414/mo44.9%Mortgage stress
Rates up 2%9.20%$4,914/mo+$842/mo49.1%Mortgage stress
Rates up 3%10.20%$5,354/mo+$1,282/mo53.5%Mortgage stress

Repayment vs gross monthly income

Under 30% is comfortable, 30 to 40% stretched, over 40% severe stress.

Thin lines on each bar mark 30% and 40% of gross monthly income. Bars stop at 60%.

Where the 30% rule breaks

The rate at which your repayment would cross 30% of gross monthly income.

Break rate
4.39%
Already past by
2.81 pp

At today's 7.20% rate, your repayment already exceeds 30% of gross monthly income. Any rise puts more pressure on the budget.

Repayments are principal and interest on the full loan amount over the whole term, at each rate. The 30% and 40% lines are common benchmarks, not lender rules, and lenders also look at your expenses and other debts. Default rate as of September 2026.

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Keep going

Tools people usually open after a rate shock test.

Rate shock, explained

APRA requires banks to assess every new home loan at your actual rate plus a 3 percentage point buffer. The idea is that you should still be able to service the loan if rates rise meaningfully over the term.
Data verified September 2026

For illustration only. This tool does not constitute personal financial advice. Grant amounts, caps, and eligibility rules may change. Federal scheme caps shown are for capital city/regional centres and may differ for other areas. Always verify with your state revenue office and Housing Australia, and consider seeking independent financial advice before making decisions.