What is the difference between the unit price and the total cost of financing? | Ask Banky

Editor-in-Chief Mohamed Salah

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Editor-in-Chief Mohamed Salah

What is the difference between the unit price and the total cost of financing?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

The unit price is the property's price, while the financing cost includes what you'll pay over the term and associated fees.

Key points

  • Compare the total cash flows, not just the interest.

  • A longer term can significantly increase the total.

The figures, fees and limits in this answer vary by bank and change over time — confirm them with your bank or the official source before acting.

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