Glossary

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AAPR

The Average Annual Percentage Rate (AAPR) calculates the actual rate of a loan by taking into account interest rates, upfront and ongoing fees, and other costs not included in the advertised rate. Known in Australia as the Comparison Rate, it helps the borrower determine the real costs of a loan for a more level comparison with other loans. The rates are calculated with a loan value ratio of 75% over a period of 7 years. Since July 2003, lenders have been required disclose the AAPR in all their ads for personal and home loans.