32 - Interest Rate vs. APR: What’s the Difference?

APR is an acronym for annual percentage rate. It is a calculation that includes both the interest rate and the finance charges of a loan. In other words it is the annual cost over the life of a loan - the total cost of credit. Do you know how much the loan you just signed will end up costing you? Have you calculated the true financing costs? Most people see only the interest rate calculations.

Today’s podcast interview is with Licensed Insolvency Trustee, Rob Johnson of Allan Marshall & Associates. Rob discusses brokerage fees, loan fees and the hidden costs in financing agreements with lenders. Other topics discussed include:

• Calculating the interest rate and APR on your mortgage
• Payday loan companies interest rates and additional fees
• What affects the interest rate that lenders offer you
• Using the APR instead of the interest rate to compare the cost of loans
• When the APR is the same as the interest rate - there are no hidden charges. 

Licensed Insolvency Trustees are federally regulated and approved by the Canadian government. With their extensive knowledge of financial services you can be assured that you are getting the best qualified advice.

Rob Johnson joined Allan Marshall & Associates in April, 2010. Prior to joining the practice, he was a Vice President with Ernst & Young Inc.’s Corporate Restructuring Group. Rob holds a Bachelor of Business Administration, is a Chartered Accountant, and a Chartered Insolvency and Restructuring Professional.

Rob enjoys helping people restore balance and improve their quality of life by working together with the goal of solving their financial burdens.

• Allan Marshall & Associates - Licensed Insolvency Trustee
• Preparing for Higher Interest Rates When You Have Mortgage Debt
• Canadian Inflation Rates – How to Protect Against Hyperinflation & Avoid Debt