The annual average percentage rate, also known as AAPR, is the standard used to determine the actual cost of a loan, including the costs incurred with the loan.
Commonly known as the “True Rate”. Used to ascertain the actual rate of a loan by factoring in upfront costs, ongoing fees (non government) over a loan period of 7 years with a loan value ratio (LVR) of 75%.
The annual average percentage rate (AAPR), a tool to be used to determine the true cost of the loan including associated costs incurred with the loan.
The average annual percentage rate (AAPR) wraps up interest payments and fees and expresses all these costs in one rate. It is designed to reflect the total annual cost to a borrower of a loan. All lenders are required to disclose this benchmark comparison rate in their advertising of home loans and personal loans from July 1, 2003.
Average Annualised Percentage Rate. Sometimes referred to as the Compulsory Comparison Rate, this figure takes into account the other costs associated with the loan etc, and expresses them as an average interest rate, to create a level field with which to compare like loan product interest rates.
Average Annual Percentage Rates
also known as the mortgage comparison rate or true rate. Used to compare the actual rate of a loan, taking into account the nominal interest rate per annum, the compounding frequency and upfront and ongoing fees, as outlined in the Consumer Credit Code.
Average annualised percentage rate. This is a figure that includes costs associated with a loan, and creates an average interest rate for the purpose of comparison.
The Average Annual Percentage Rate (AAPR) is also known as the "True Rate" or mortgage comparison rate and can be used as a usual tool in determining the cost of ongoing fees associated with taking up the loan. The AAPR is the average interest rate payable over a 7 year period for a given loan amount including all upfront fees, ongoing fees, interest rate [and a revert to rate for the case of Fixed term, introductory and honeymoon loans] and the interest payable on that loan amount over that period. Not included in the AAPR are government fees, exit/discharge fees, service fees (eg Redraw, Internet usage fees, etc) and any other fees that are not always applied.
Annualised Annual Percentage Rate. See Comparison Rate.
AVERAGE ANNUAL PERCENTAGE RATE. The annual effective rate of the mortgage which is made up of the interest rate, fees and charges that incur during the contract period. (see press release article)