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 Half Yearly | Repaid Fortnightly | ||
| Loan Period | |||
| 30 yrs | 25 yrs | 20 yrs | |
| Rate when agreed | Increased to | ||
| 5.00% | 6.55% | 7.14% | 8.08% |
| 5.50% | 6.93% | 7.51% | 8.42% |
| 6.00% | 7.33% | 7.88% | 8.78% |
| 6.50% | 7.73% | 8.27% | 9.15% |
| 7.00% | 8.15% | 8.66% | 9.52% |
| 7.50% | 8.57% | 9.06% | 9.90% |
| 8.00% | 9.00% | 9.48% | 10.29% |
| 8.50% | 9.44% | 9.90% | 10.68% |
| 9.00% | 9.89% | 10.32% | 11.04% |
| 9.50% | 10.35% | 10.76% | 11.50% |
| 10.00% | 10.81% | 11.20% | 11.91% |
| 10.50% | 11.61% | 11.65% | 12.29% |
| 11.00% | 11.76% | 12.11% | 12.77% |