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 Monthly | ||
| Loan Period | |||
| 30 yrs | 25 yrs | 20 yrs | |
| Rate when agreed | Increased to | ||
| 5.00% | 6.45% | 7.01% | 7.92% |
| 5.50% | 6.82% | 7.37% | 8.25% |
| 6.00% | 7.20% | 7.73% | 8.60% |
| 6.50% | 7.59% | 8.10% | 8.95% |
| 7.00% | 7.99% | 8.48% | 9.30% |
| 7.50% | 8.39% | 8.87% | 9.67% |
| 8.00% | 8.81% | 9.26% | 10.04% |
| 8.50% | 9.23% | 9.66% | 10.41% |
| 9.00% | 9.66% | 10.07% | 10.79% |
| 9.50% | 10.09% | 10.48% | 11.18% |
| 10.00% | 10.53% | 10.90% | 11.58% |
| 10.50% | 10.98% | 11.33% | 11.98% |
| 11.00% | 11.43% | 11.76% | 12.38% |