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Annual Percentage Rate (APR)

  • An indicator of the cost of a mortgage based on the annualised as opposed to monthly calculations.
  • Criticized for being misleading since most borrowers swap lender or products within say 5 years, whereas the APR is based on the term of the loan e.g. 25 years which is unlikely to be realised.
Published: 5 November 2013 Last Updated: 17 November 2021