Hello everyone, this is my first post here on Invested although I've been reading the forum for a while and have found it very helpful.

I was wondering if someone (maybe a mortgage broker?) could help me understand something.

I am currently looking into transferring my mortgage from ANZ to Suncorp. Suncorp is able to offer a lower interest rate (8.77% vs 8.97%), however based on their calculations, fortnightly repayments will be higher, all else (term of loan, payment frequency) being equal.

I don't understand how a loan with a lower interest rate can have higher fortnightly repayments. The banking manager at suncorp explained that it was due to differences in the way interest is calculated and how frequently it is charged, although this went over my head.

Is anyone able to explain this in plain language for me? It would be much appreciated.

Thanks