If you’re among the 33% of Australians with a mortgage, you’re likely to have noticed a dramatic increase in your mortgage repayments this year. 

Since the beginning of 2026, the Reserve Bank of Australia (RBA) has lifted the cash rate four times, taking it from 3.6% to 4.6%. This represents a 15-year high.

For those with an average $731,000 loan balance, this change is meaningful. For those with an even larger mortgage or insufficient income to cover it, the change is likely to be especially stressful. 

At the same time, a record number of Australians are investing.

According to the 2026 ASX Investor Study, 11.5 million Australians are now investing outside of their superannuation or primary residence in 2026. That’s up by 2.5 million since 2020. 

The largest allocation is to ASX-listed shares, with 58% of investors holding them. 

Approximately 950,000 Australian adults also plan to start investing in the next 12 months.

Interest in Self-Managed Super Funds (SMSF) investing is also rising. Around 20% of non-SMSF investors say they’re considering establishing an SMSF in the next 12 months.

Overall, the data is showing that a growing number of Australians are committed to growing their wealth through investing. However, in the face of mortgage pressures, many of these investors may be reconsidering whether to pay down the mortgage instead. 

While this is a highly personal decision, a simple calculation can help Australian mortgage holders decide which option is more likely to put them ahead.

So let’s run through the numbers.

Calculating your before-tax mortgage rate

According to the RBA, the average variable interest rate on owner-occupied properties stands at 6.2%. 

Unlike investment properties, interest repayments on mortgages for primary residences are not tax deductible. This means that homeowners must make mortgage repayments after paying income tax.

So, it’s the before-tax figure that matters.

In Australia, we have a progressive tax system. This means that higher income earners are taxed at higher rates than lower income earners. As a result, the pre-tax mortgage rate will be greater for higher income earners. 

Here’s how to approximately calculate the after-tax rate (including the 2% medicare levy):

Tax bracket	Marginal Tax rate	After tax	Before tax
$0 – $18,200	0%	6.2%	6.2%
$18,201 – $45,000	17%	6.2%	7.5%
$45,001 – $135,000	32%	6.2%	9.2%
$135,001 – $190,000	39%	6.2%	10.2%
$190,001 and over	47%	6.2%	11.7%

Long-term ASX share market returns

The next step is to estimate the return you’re likely to receive by investing in ASX shares. 

According to the 2026 Vanguard Index Chart, Australian shares have returned 9.0% over the past 30 years. While returns have varied year to year, this is a useful proxy for investing in ASX shares and holding them for at least 5 years.

Compare the pair

Now that we’ve run through the numbers, a comparison can be made to determine whether it’s more advantageous to pay down the mortgage or buy ASX shares. 

Let’s make that comparison for the average Australian. 

According to the Australian Bureau of Statistics (ABS), the average Australian annual income in 2026 is $108,352.40. That puts them in the 30% tax bracket (for the upper portion of their income), meaning their pre-tax mortgage rate is 9.2%. 

This is very close to the average return for ASX shares, which comes in at 8.9%. 

So for the average Australian income owner with a mortgage, it’s essentially a draw.

For higher-income earners, paying down the mortgage is slightly more advantageous (11.7% vs 9.0%).

Other considerations

As most mortgage holders would know, there’s more to consider than just the raw figures.

Perhaps most importantly, the emotional burden of being committed to large mortgage repayments can be significant. 

As reported by the Australian Financial Review, the percentage of household income spent on mortgage repayments is near historic peaks, as of mid-2026.

New South Wales, which has the highest average mortgage at around $850,000, has been most affected. The average New South Wales family spent more than 30% of household income on mortgage repayments in June this year. Meanwhile, the average Queensland family allocated 28% towards their mortgage, while South Australia and Western Australia came in at 26%. Victorians paid just 22%.

Another important consideration that would vary the equation is the type of ASX shares that the mortgage holder invests in. While the 30-year average may be a good proxy for investing in index funds such as the Vanguard Australian Shares Index ETF (ASX: VAS), returns vary dramatically based on stock selection. 

Mortgage holders with a track record of significantly outperforming the market may prefer continuing to do so instead of paying down their debt.

What if the RBA raises rates again?

Unfortunately for mortgage holders, further rate hikes have not been ruled out. 

The market has priced in a 30% chance of another rate hike in November 2026. Another one is widely expected in May 2027. 

According to Deloitte Access Economics, should the RBA lift the cash rate to 4.85%, a borrower with the average-sized owner-occupier loan would pay around $9,000 more in annual interest than a year ago. 

This would tip the equation in favour of paying down the mortgage for the average Australian income owner and set a higher returns threshold for preferencing ASX shares.

The post Interest rates are going up: Should you pay down your mortgage or buy ASX shares? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• I think this ASX share is a bargain buy after hitting a 52-week low: Here’s why
• Up 20%: Has the EQT deal saved Cleanaway shares?
• Could $750,000 in ASX ETFs fund a comfortable retirement?
• A rare buying opportunity in 1 of Australia’s top shares?

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was a somewhat volatile but ultimately positive return to trading for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Monday. After last Friday’s euphoric end to the trading week, investors seemed to have come back from the weekend with that mindset mostly intact.

Although the ASX 200 did briefly dip into negative territory at one point this session, it ended up closing a comfortable 0.44% higher. That leaves the index at 8,845.7 points.

This happy start to the trading week for the Australian markets came after a far more negative conclusion to the American trading week on Saturday morning (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) had a rough time, falling 0.34%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was much worse though, dropping 2.14%.

Let’s get back to this week and our local markets now and take a closer look at what the various ASX sectors were up to today.

Winners and losers

Despite today’s broader market optimism, there were still a few sectors that were left out.

Leading those losers were tech stocks. The S&P/ASX 200 Information Technology Index (ASX: XIJ) was left out in the cold, tumbling 1.31%.

Gold shares were no safe haven either, with the All Ordinaries Gold Index (ASX: XGD) diving 0.68%.

Consumer discretionary stocks were also unlucky. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) saw its value cut by 0.2%.

Real estate investment trusts (REITs) were also in that ballpark, as evidenced by the S&P/ASX 200 A-REIT Index (ASX: XPJ)’s 0.19% dip.

Our final losers this Monday were consumer staples shares. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) slid 0.08% lower.

Let’s turn to the winners now. Leading said winners were energy stocks, with the S&P/ASX 200 Energy Index (ASX: XEJ) galloping 2.21% higher.

Financial shares also ran hot. The S&P/ASX 200 Financials Index (ASX: XFJ) surged by 0.86% today.

Industrial stocks followed financials, illustrated by the S&P/ASX 200 Industrials Index (ASX: XNJ)’s 0.83% jump.

Utilities shares did decently too. The S&P/ASX 200 Utilities Index (ASX: XUJ) closed up 0.38%.

Communications stocks didn’t miss out, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) lifting 0.21%.

Healthcare shares managed a rise. The S&P/ASX 200 Healthcare Index (ASX: XHJ) finished the day with an extra 0.14%.

Finally, mining stocks just got over the line, as you can see by the S&P/ASX 200 Materials Index (ASX: XMJ)’s 0.11% bump.

Top 10 ASX 200 shares countdown

Taking out the crown this Monday was waste management stock Cleanaway Waste Management Ltd (ASX: CWY). Cleanaway shares rocketed up 10.24% today to close at $2.97 each.

This followed the news that the company has entered into a takeover scheme with EQT Infrastructure.

Here’s the rest of today’s best:

ASX-listed company	Share price	Price change
Cleanaway Waste Management Ltd (ASX: CWY)	$2.97	20.24%
Challenger Ltd (ASX: CGF)	$11.75	19.29%
Ingenia Communities Group (ASX: INA)	$4.24	7.07%
New Hope Corporation Ltd (ASX: NHC)	$6.18	5.82%
Yancoal Australia Ltd (ASX: YAL)	$6.29	5.71%
Whitehaven Coal Ltd (ASX: WHC)	$7.93	5.17%
Charter Hall Group (ASX: CHC)	$19.35	4.54%
Beach Energy Ltd (ASX: BPT)	$0.905	4.02%
Karoon Energy Ltd (ASX: KAR)	$1.75	3.87%
AMP Ltd (ASX: AMP)	$2.47	3.78%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Up 20%: Has the EQT deal saved Cleanaway shares?
• Cleanaway Waste Management enters $9.3bn Scheme with EQT Infrastructure
• Challenger confirms $11.80 per share takeover proposal
• New Hope to create $6.3bn coal group with Malabar merger
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Deep Yellow Ltd (ASX: DYL) shares have fallen even further into the red in Monday afternoon trade.

At the time of writing, the ASX uranium development company’s shares are down just over 6.5% for the day, and trading at 77 cents a piece.

At one point this morning, the shares were changing hands as low as 76 cents.

That’s the lowest price Deep Yellow shares have traded at over the past three years.

The shares have now fallen around 43% over the past month alone, and they’re down 61% year to date.

Why have the ASX shares hit a multi-year low today?

There hasn’t been any price-sensitive news out of Deep Yellow today to explain the latest share price slide. Instead, it looks most likely that today’s tumble is the result of the company’s latest ASX announcement.

On Friday last week, Deep Yellow said it has delayed the construction decision for Tumas because current equity market conditions do not support raising the capital needed to transition the project into construction in the fourth quarter of 2026.

The uranium developer’s early construction work and contracting will continue, but investors are likely concerned about whether the company can secure a viable funding route for Tumas.

The shares actually climbed around 1% at the close of the ASX on Friday afternoon. But it looks like over the weekend, investors digested the news and raised concerns about the structural and long-term implications of the update.

The news comes at a time when Deep Yellow is already facing share price pressure.

Rising bond yields and higher interest rates have acted as strong headwinds for ASX uranium shares over the past year. Uranium developers like Deep Yellow need upfront capital, and it takes several years to become profitable. Investors have also been rotating towards more stable or defensive assets in times of volatility.

It’s not just Deep Yellow shares that have fallen over the past week; other uranium shares have also been hit by the same headwinds and are falling today.

Here’s why I think Deep Yellow shares are a bargain buy

It’s understandable that the company’s latest Tumas update has spooked investors.

But I still see some potential upside for the ASX shares. 

Beyond its Tumas project in Namibia, the company also has several other key projects and exploration plans.

Deep Yellow is also in a pre-construction and study phase at its Mulga Rock project in Western Australia. The site is one of the largest undeveloped uranium projects in Australia.

The company is also undertaking drilling programs at its Alligator River Project in the Northern Territory, and its Omahola Project in Namibia.

The company is financially strong too. 

Deep Yellow holds a strong liquidity position supported by substantial cash reserves and minimal debt. As part of its latest quarterly activity report, Deep Yellow confirmed that it has cash and cash equivalents of A$160.0 million as of the 30th June 2026.

I see the latest share price declines as mostly driven by poor sentiment, a lack of confidence, and sector-wide headwinds. When these headwinds reverse, I think the company’s shares could rebound quickly.

What do the experts tip for the uranium shares next?

The experts are also bullish that we’ll see a strong upside ahead.

Market Index data shows that the majority of brokers have a buy rating on Deep Yellow shares. The $2.25 average target price implies an impressive upside of around 193% for the ASX shares over the next 12 months, at the time of writing.

The post I think this ASX share is a bargain buy after hitting a 52-week low: Here's why appeared first on The Motley Fool Australia.

More reading

• Deep Yellow updates on Tumas project progress, delays FID
• Own ASX mining shares? Official forecasts show commodity prices peaking in FY27
• Here are the top 10 ASX 200 shares today
• 3 ASX shares tipped to fly 109% to 322% higher
• Buy, hold, sell: Deep Yellow, SGH, Telstra shares

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.