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 Annually | Repaid Monthly | ||
| Loan Period | |||
| 30 yrs | 25 yrs | 20 yrs | |
| Rate when agreed | Increased to | ||
| 5.00% | 6.64% | 7.25% | 8.22% |
| 5.50% | 7.04% | 7.62% | 8.58% |
| 6.00% | 7.44% | 8.01% | 8.95% |
| 6.50% | 7.86% | 8.41% | 9.33% |
| 7.00% | 8.29% | 8.82% | 9.72% |
| 7.50% | 8.73% | 9.24% | 10.11% |
| 8.00% | 9.18% | 9.67% | 10.52% |
| 8.50% | 9.64% | 10.11% | 10.93% |
| 9.00% | 10.11% | 10.56% | 11.36% |
| 9.50% | 10.58% | 11.01% | 11.79% |
| 10.00% | 11.07% | 11.48% | 12.23% |
| 10.50% | 11.56% | 11.95% | 12.67% |
| 11.00% | 12.06% | 12.43% | 13.13% |