What does the APR on some of the documents mean and how is it different from my mortgage rate?

Joel Olson • September 1, 2017

On some of our forms you will see an interest rate and an annual percentage rate. This two numbers are not the

same.


The definition of an APR is the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as

applied on a loan, mortgage loan, credit card, etc. It is a finance charge expressed as an annual rate.


In other words, your APR includes the cost of your mortgage for the year, For example should you pay $1000 in

legal fees and $1000 in interest fees for one year on the mortgage, and your mortgage is $100,000. Your APR

would be 2%.


In most cases, in terms of a mortgage this is an irrelevant number. However, if you were given a credit card with a

30% APR and 5% interest rate, you would know there is a a fee you are paying that you are not aware of.


 

A man with a beard and a suit is smiling for the camera.
Joel Olson
GET STARTED

Bank of Canada Holds Rate at 2.25% — September 2, 2026

By Joel Olson • September 2, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. While Canada's economic recovery is broadening, a new layer of uncertainty has entered the picture. Here is what happened and what it means for your mortgage.
Hands using a calculator beside a laptop on a desk with paperwork

Breaking Down the Real Costs of Homeownership

By Joel Olson • September 1, 2026
Understand the real costs of homeownership. Budget for closing costs, inspections, and more. Contact Joel Olson for expert mortgage advice.