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Why you're probably paying more interest on your mortgage than you think

By Sander De Groote, Lecturer, School of Accounting, Auditing and Taxation, UNSW Sydney
Kevin Li, Senior Lecturer, School of Accounting, Auditing and Taxation, UNSW Sydney

The way banks calculate interest means that Australian borrowers who sign up to pay 5.95% per annum pay something closer to 6.11%.

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