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Picture Book · Debt recycling

When rates rise

Story pages

A man in his mid forties with glasses cooking at a barbecue in a backyard
Meet Chris. He's 44 and has a variable-rate loan.
A thermometer on a garden fence in bright sunshine
If interest rates rise, his repayments go up.
Two garden taps side by side on a brick wall
That applies to the investment part of the loan as well as the home part.
A man in his mid forties looking up thoughtfully at a tall tree
Moneysmart suggests asking: could I still afford the repayments if rates rose by 2% or 4%?
A pair of old-fashioned balance scales with fruit on one side
Investing only makes sense if the after-tax return is more than all the costs of the loan and investment.
A man in his mid forties writing in a notebook at an outdoor table
Chris works through a higher-rate scenario before he starts.

The end

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General advice warning. This picture book is general information only. It does not take into account your objectives, financial situation or needs, and it is not personal advice. Rules and thresholds change. Before acting, consider whether it is right for you, read any relevant Product Disclosure Statement and our Financial Services Guide, and seek personal advice. Past performance is not a reliable indicator of future performance.

Information as at 27 October 2026. Sources:

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Every situation is different. One of our advisers can help you work out what applies to you.

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