When the Interest rate increases as per table below say in 2 years of loan, the full amount of loan will remain unpaid, in spite of paying all instalments all the years.
| Compounded Monthly | Repaid Fortnightly | ||
| Loan Period | |||
| 30 yrs | 25 yrs | 20 yrs | |
| Rate when agreed | Increased to | ||
| 5.00% | 6.46% | 7.03% | 7.94% |
| 5.50% | 6.83% | 7.39% | 8.28% |
| 6.00% | 7.22% | 7.75% | 8.62% |
| 6.50% | 7.61% | 8.13% | 8.98% |
| 7.00% | 8.01% | 8.51% | 9.33% |
| 7.50% | 8.42% | 8.90% | 9.70% |
| 8.00% | 8.84% | 9.29% | 10.07% |
| 8.50% | 9.26% | 9.70% | 10.45% |
| 9.00% | 9.69% | 10.11% | 10.84% |
| 9.50% | 10.13% | 10.52% | 11.23% |
| 10.00% | 10.57% | 10.95% | 11.62% |
| 10.50% | 11.02% | 11.37% | 12.03% |
| 11.00% | 11.48% | 11.81% | 12.44% |