Rate rise stress test
Would the loan still work at a higher rate?
Enter your balance, your current rate and the term you have left to see what the repayment becomes if the rate rose by one, two or three percentage points. These are scenarios to look at, not a prediction about where rates are going.
The rate you enter is your starting point. The rises below are scenarios to look at, not a forecast.
Extra each month if your rate rose 3%
$974/mo
$3,222/mo now, $4,196/mo at 9.00%
Illustrative scenarios, not a prediction that rates will move.
Repayment now
$3,222/mo
At 6.00%
Repayment at +3%
$4,196/mo
At 9.00%
Extra over a year
$11,694
If the rate stayed 3% higher for 12 months
How this works
The calculator takes the balance, rate and remaining term you enter, works out the standard principal and interest repayment, then repeats that calculation with one, two and three percentage points added to the rate. The difference is what the same loan would cost each month at each of those higher rates.
Nothing here is a forecast. The rises are fixed illustrative steps, chosen because they are round numbers and because lenders themselves assess new borrowers at a rate above the one on offer. Neither LoanTorq nor anyone else knows where rates will go, and this calculator does not attempt to guess.
It is worth running for two reasons. If you are on a fixed rate that ends soon, the rate you roll onto is the one that matters, and the gap can be larger than people expect. And if the answer at plus two or three is uncomfortable, that is worth knowing now rather than later, while there are still moves available — which is exactly the kind of thing a refinance review is for.
General information only, illustrative only. This calculator is not a quote, a pre-approval or a form of credit assistance, and it is not a forecast or prediction of interest rate movements. The rate you enter is your own figure and the rises shown are fixed illustrative scenarios. Actual repayments depend on your lender, your loan type and its current policy. It does not include fees, offset or redraw behaviour, or any change to your loan other than the rate.
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