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Loan Comparison (Canadian) |
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Determining which loan provides you with the best value is more than simply comparing monthly payments. Use this calculator to sort through the monthly payments, fees and other costs associated with getting a new loan. By comparing these important variables side by side, this calculator can help you pick the loan that works best for you.
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Definitions
- Loan amount
- The total amount for this loan.
- Interest rate
- The interest rate on this loan.
- Loan term
- The number of years over which you will repay this loan. The most common terms are 15 years and 25 years.
- Fees
- Any fees that should be included in the APR calculation. These fees can vary by lender, but at a minimum usually includes prepaid interest.
- Loan payment
- Principal and interest payment (PI).
- Equivalent monthly payment
- The sum of periodic payments.
- Annual percentage rate (APR)
- A standard calculation used by lenders. It is designed to help borrowers compare different loan options. For example, a loan with a lower stated interest rate may be a bad value if its fees are too high. Likewise, a loan with a higher stated rate with very low fees could be an exceptional value. APR calculations incorporate these fees into a single rate. You can then compare loans with different fees, rates or different terms.
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