The interest rate is important, but it is not the only cost of borrowing. A lender may also charge a processing fee and applicable taxes or other charges described in the agreement.
Check whether the processing fee is deducted from the disbursed amount or collected separately. This affects how much money you actually receive.
Review late-payment charges, cheque or payment-return charges, foreclosure or prepayment terms, and any other listed fees before signing.
Compare the total amount payable and the net amount you receive across offers. Ask the lender to clarify any charge you do not understand.
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