- Apply for a Mortgage
- Contact Us
- Mortgage News
- Library & Statistics
- Rates & Tools
- Mortgage Services
- Home
1-800-604-1864
Professional Listings
Mortgage Statistics
Apply Now
Mortgage Rates
Current Mortgage RatesVariable closed: 1.65% 1 year closed: 1.64% 3 year closed: 1.59% 5 year closed: 1.69% 10 year closed: 2.84% Glossary
Tools
Mortgage Calculators Credit Card Calculators
Search the Glossary
GLOSSARY
Canadian Financial, Real Estate and Mortgage Glossary
How often this word is used
^
50% - Moderately
50% - Moderately
Annual Percentage Yield
Synonyms: | compounded, interest rate, yearly |
Acronyms & abbreviations: | APY |
Filed Under: | financial-banking, investments |
Tags: | banking |
Definition of annual percentage yield (APY)
- annual percentage yield (APY)
- 1. The percentage disclosed on interest-bearing deposit accounts that reflect the total interest to be earned based on an institution's compounding method, assuming funds remain in the account for a 365-day year. This disclosure is required by Truth in Savings regulations.
Related Terms and Acronyms:
-
annual percentage rate (APR)
A yearly rate of interest that includes fees and costs paid to acquire the loan. Lenders are required by law to disclose the APR. The rate is calculated in a standard way, taking the average compound interest rate over the term of the loan, so borrowers can compare loans. In mortgages, it is the interest rate of a mortgage when taking into account the interest, mortgage insurance, and certain closing costs including points paid at closing. There is no APR in an automobile lease; instead, the cost of money is expressed as the money factor.
➥ A number used to compare costs associated with mortgage loans and other forms of financing. - annual percentage yield earned (APYE)
- compound interest Interest that is calculated by adding the interest earned in the current period to the principal and figuring the next period's interest on this "compounded" total amount.
- compounding method Used in Bank rate tables. These include: S--Simple interest. A--Compounded annually. H--Compounded semi-annually. Q--Compounded quarterly. M--Compounded monthly. D--Compounded daily.
- principal and interest (P&I, PI) Acronym for the elements of a mortgage payment: principal and interest.
- simple interest (SI) Interest computed only on the principal balance, without compounding.
- simple interest loan A method of allocating the monthly payment between interest and principal. The interest charged is determined by the unpaid principal balance on the loan, the interest rate, and the number of days since the last payment. The rest of the payment goes to the principal. Making early payments or additional payments reduces the loan's principal and cuts the total interest paid over the life of the loan.
Search the Glossary
Best Mortgage Rates
With a lower mortgage rate, it's easier to afford a better home and what you save on interest can go directly toward paying off the principal value of your property faster. Make sure you get the best rates in Canada on your mortgage, apply today.
Mortgage Rates
If you look for a mortgage online, you'll soon see that from one lender, bank, or broker to the next, the rates offered can be substantially different. Some high, some low. Compare the best mortgage rates and make sure your money isn't being wasted.Rate Comparison Calculator
It can be hard to figure out exactly how much you can afford to spend on your home, but we're here to help. We have taken the time to redesign our top-rated mortgage calculator and made it easier to use than ever before. Compare rates, evaluate terms, and calculate multiple mortgages side-by-side.
|
Tel: 1-800-604-1864 Fax: 1-866-565-1864 info@superbrokers.ca |
© 2000-2020 Super Brokers is Canadian owned and operated by Colloco Enterprises.
All trademarks and logos are the property of their respective owners. All rights reserved.
All trademarks and logos are the property of their respective owners. All rights reserved.