APR — annual percentage rate of charge

What it is The APR expresses the total annual cost of the money you receive as a loan, in % — not just the interest, but all costs required to grant the loan: fees, valuation, insurance (when the bank requires it), commissions and more. It is calculated with a statutory formula (an internal rate of return over all cash flows) under the Bulgarian Consumer Credit Secured by Immovable Property Act for mortgages and the Consumer Credit Act for consumer loans.

Why it matters to you Interest is only part of the price. Two offers with the same interest rate can have a different APR because of fees and package conditions. The APR was created precisely to reduce everything to one number — easy to compare between banks.

What to watch for

• The APR assumes that conditions do not change until the end of the term. With variable rates it is a guide, not a guarantee — the real cost depends on how the variable component moves.
• Not all costs are necessarily included in the APR (e.g. the notary and the property transfer tax, if they are not a bank requirement). So besides the number, check what exactly is included.
• A low interest rate is often tied to a package; the real price shows in the APR, not in the advertised rate.
• Rely on a professional Credit Consultant, whose job is to watch for all of this and point out every detail when you choose the lending bank.

In the LendingFree comparison report the APR is the key comparison field — calculated with the same logic for all offers. LendingFree recalculates the APR using the same rules for everyone and ensures a fair comparison.