Representative example: Jim gets a jet ski
Jim has owned a cottage in Northern Ontario for many years and has always dreamed of owning a jet ski. His neighbour is selling a one year old high-end jet ski for just $7,000.00 – which is an absolute bargain in Jim’s eyes. Jim only has $4,000.00 to spend on a jet ski at the moment, but he doesn’t want to pass up on the opportunity, so he decides to take out a loan to cover the remaining $3,000.00. Jim only has a fair credit rating, so he heads online to compare non-traditional lenders. He finds a lender willing to offer the full $3,000.00 with a 16.00% APR and a 1 year loan term.
Cost of jet ski | $7,000.00 |
Loan type | Personal loan |
Loan amount | $3,000.00 |
Interest rate (APR) | 16.00% |
Loan term | 1 year |
Additional fees | Origination fee of 3% ($90.00) |
Monthly payment | $272.19 |
Total loan cost | $3,356.31 |
*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.