What is O.A.C??

[crackerjack]

The reason why I'm asking on what is OAC in personal finance is that I see it in the fine print on this web page:

http://finderfin.com/Best-Canadian-Mortgage-Rates

What's the difference between OAC and APR?

Wouldn't one use APR to get a better comparison of rates between company's offerings?

Also is this a good company to deal with for mortgages?

The best rate I could get is 4.25% which is advertised on banks' website (5 year fixed).

thanks!

[Wonderdollar]

The reason why I'm asking on what is OAC in personal finance is that I see it in the fine print on this web page:

http://finderfin.com/Best-Canadian-Mortgage-Rates

What's the difference between OAC and APR?

Wouldn't one use APR to get a better comparison of rates between company's offerings?

thanks!

OAC = On Approved Credit

APR = Annual Percentage rate. To understand APR follow this link http://banking.about.com/od/loans/a/calculateapr.htm


Both are different things.

[fishwallop]

OAC = "on approved credit" means "your rate will be higher, because your credit score isn't perfect"

APR = "annual percentage rate" - may differ from the stated interest rate (e.g. 2% monthly) because of the effect of compounding and the deemed "interest" paid for various fees associated with the lending amortized over the life of the loan: see http://en.wikipedia.org/wiki/Annual_percentage_rate

[crackerjack]

Hey..

Found this link.. perhaps that's why they're quoting 3.8% - it might be a "no frills" mortgage.. interesting reading..

http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2009/03/no-frills-mortgages.html