When comparing loan options and credit cards, it’s important to consider their annual percentage rates. Here’s how APR reflects the true cost of borrowing.
Short for annual percentage rate, an APR is the amount you pay per year to borrow money. An APR includes the total interest, plus any additional fees, closing costs and required insurance. So, it more accurately reflects the cost of borrowing than interest alone. Lenders must disclose the APR before a borrower signs for a loan.
Example: “When considering different loan options, compare their APRs, not just their interest rates.”
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
If you want to be a home owner in...
The federal government will launch the FHSA as part...
Inflation and banking fears ease (or do they?),...
Canada’s new first home savings account nicely complements earlier...
If you’re looking for near-universal acceptance, look no further...
What is Canada’s First-Time Home Buyer Incentive program and...
The Consumer Price Index shows inflation is starting to...
Watch your money grow—or calculate how much money you...
