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 Quarterly | Repaid Fortnightly | ||
| Loan Period | |||
| 30 yrs | 25 yrs | 20 yrs | |
| Rate when agreed | Increased to | ||
| 5.00% | 6.50% | 7.08% | 8.00% |
| 5.50% | 6.87% | 7.44% | 8.34% |
| 6.00% | 7.26% | 7.80% | 8.69% |
| 6.50% | 7.66% | 8.18% | 9.04% |
| 7.00% | 8.06% | 8.57% | 9.41% |
| 7.50% | 8.48% | 8.96% | 9.78% |
| 8.00% | 8.90% | 9.37% | 10.16% |
| 8.50% | 9.33% | 9.77% | 10.54% |
| 9.00% | 9.77% | 10.19% | 10.89% |
| 9.50% | 10.22% | 10.62% | 11.33% |
| 10.00% | 10.67% | 11.05% | 11.74% |
| 10.50% | 11.13% | 11.39% | 12.15% |
| 11.00% | 11.59% | 11.93% | 12.57% |