The Annual Percentage Rate (APR) in a mortgage in Canada refers to a comprehensive measure of the cost of borrowing. It includes not just the interest rate, but also other associated costs such as origination fees, discounts, closing costs, and mortgage insurance. APR is calculated by adding all these costs and dividing this sum over the loan term, providing a single percentage that represents the total borrowing cost. APR aids in comparing different mortgage offers by showing the full cost of the loan beyond the interest rate. It’s crucial to also consider other factors such as term length, type of interest rate, and financial health when choosing a mortgage. Therefore, understanding your APR enhances the transparency of your mortgage selection process.