APR (Annual Percentage Rate)
GeneralThe yearly cost of borrowing money, expressed as a percentage. APR includes interest and certain fees, making it a more complete picture of what a loan actually costs compared to the interest rate alone.
Read more about this →Related terms
-
Interest rate
The percentage a lender charges you to borrow money, or the percentage a bank pays you for keeping money in a savings account. Lower rates are better for borrowing; higher rates are better for saving.
-
Fixed rate
An interest rate that stays the same for the entire term of the loan or mortgage. Fixed rates provide certainty — your payment amount will not change — but may start higher than variable rates.
-
Variable rate
An interest rate that changes with the market, usually tied to the Bank of Canada prime rate. Variable rates may start lower than fixed rates but can increase, making payments less predictable.