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 Monthly | ||
| Loan Period | |||
| 30 yrs | 25 yrs | 20 yrs | |
| Rate when agreed | Increased to | ||
| 5.00% | 6.53% | 7.12% | 8.05% |
| 5.50% | 6.92% | 7.48% | 8.40% |
| 6.00% | 7.31% | 7.86% | 8.75% |
| 6.50% | 7.71% | 8.24% | 9.11% |
| 7.00% | 8.12% | 8.63% | 9.49% |
| 7.50% | 8.54% | 9.03% | 9.86% |
| 8.00% | 8.97% | 9.44% | 10.25% |
| 8.50% | 9.41% | 9.86% | 10.64% |
| 9.00% | 9.86% | 10.28% | 11.04% |
| 9.50% | 10.31% | 10.72% | 11.45% |
| 10.00% | 10.77% | 11.16% | 11.86% |
| 10.50% | 11.56% | 11.60% | 12.29% |
| 11.00% | 11.71% | 12.05% | 12.71% |