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.
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
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
Repayment at each rate bump
What you pay today and at +1%, +2%, +3% above current rate.
| Scenario | Rate | Repayment | Increase | Share of income |
|---|---|---|---|---|
| Today | 7.20% | $4,073/mo | Baseline | 40.7%Mortgage stress |
| Rates up 1% | 8.20% | $4,487/mo | +$414/mo | 44.9%Mortgage stress |
| Rates up 2% | 9.20% | $4,914/mo | +$842/mo | 49.1%Mortgage stress |
| Rates up 3% | 10.20% | $5,354/mo | +$1,282/mo | 53.5%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
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.