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 Fortnightly | ||
| Loan Period | |||
| 30 yrs | 25 yrs | 20 yrs | |
| Rate when agreed | Increased to | ||
| 5.00% | 6.66% | 7.27% | 8.24% |
| 5.50% | 7.06% | 7.65% | 8.61% |
| 6.00% | 7.46% | 8.04% | 8.98% |
| 6.50% | 7.89% | 8.44% | 9.36% |
| 7.00% | 8.32% | 8.85% | 9.75% |
| 7.50% | 8.76% | 9.27% | 10.15% |
| 8.00% | 9.21% | 9.71% | 10.56% |
| 8.50% | 9.67% | 10.15% | 10.98% |
| 9.00% | 10.14% | 10.60% | 11.40% |
| 9.50% | 10.62% | 11.06% | 11.84% |
| 10.00% | 11.11% | 11.52% | 12.28% |
| 10.50% | 11.61% | 12.00% | 12.73% |
| 11.00% | 12.11% | 12.49% | 13.19% |