How does the lender calculate and charge the interest I pay?

How does the lender calculate and charge the interest I pay?

Lenders in Australia calculate and accrue interest charges every day.
UNO home loans
UNO home loans

Lenders in Australia calculate and accrue interest charges every day, for instance an advertised interest rate of 5% per annum is actually charged at 5 divided by 365 (or 366 in 2016) per day. These daily interest accruals are added up once a month and the total monthly amount is charged to you, usually via the home loan account.

Making extra repayments will significantly reduce the amount of interest you get charged. Extra repayments are repayments made earlier and larger than the minimum repayment obligation set out in the loan contract.

UNO home loans
UNO home loans

* Two year fixed rate, owner occupier, P&I package loan with a maximum LVR of 70% and a loan amount >=$150k. Lender rates and products may change. We cannot suggest you remain in or switch to any loan until we complete our assessment. Fees and charges apply. ^WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rate is calculated on the basis of a loan of $150,000 over a term of 25 years. ± All loan applications are subject to uno assessment and lender approval. uno does not guarantee that it will be able to find a customer a better loan than the one they currently have or to save them money.