RRSO (APR — annual percentage rate of charge)
The total cost of the loan expressed as a percentage per year. It covers not only interest but also the arrangement fee, mandatory insurance and other charges you have to pay to get the loan.
Banks calculate the RRSO using a single statutory method and must state it in advertising and in the information form, which makes it a good starting point for comparing offers. With a variable rate, the RRSO assumes the rate will not change for the whole loan term — in practice the cost may turn out higher or lower.