Processing fees
A one-time charge deducted from the loan amount or added to your first bill. It raises your effective borrowing cost even when the headline APR stays the same.
Plain-language learning center
The small print, translated.
Use this guide to identify the charges that can make a personal loan, credit card balance, or BNPL plan cost significantly more than advertised.
Four charges worth checking
Bundled insurance
Credit-life and accidental cover can be useful, but optional cover should be clearly disclosed. Check whether the premium was financed and is itself accruing interest.
GST on charges
GST is commonly applied to service fees, late fees, and foreclosure charges. It is easy to miss because it is listed separately from interest.
Foreclosure penalties
An early-close fee can reduce the value of paying a loan off ahead of schedule. Request a written quote before moving money.
Questions to ask your lender
- What is the net amount I actually receive after every upfront deduction?
- Which fees are optional, and can they be removed or refunded?
- What exact foreclosure or prepayment charge applies today, including GST?
- How do late fees, over-limit fees, and interest compound if I miss a payment?