GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Periodic Rate


Synonyms:interest rate, periodic interest rate, regular, repeated
Filed Under: financial-banking, mortgages
Tags: banking, mortgage, rates
 

Definition of periodic rate

periodic rate
1. The interest rate described in relation to a specific amount of time. The monthly periodic rate, for example, is the cost of credit per month; the daily periodic rate is the cost of credit per day.

Related Terms and Acronyms:

  • compounding method   Used in Bank rate tables. These include: S--Simple interest. A--Compounded annually. H--Compounded semi-annually. Q--Compounded quarterly. M--Compounded monthly. D--Compounded daily.
  • interest (IN, int)   Money paid for the use of borrowed funds, usually expressed as an annual percentage.
      ➥  Bank account transaction code.
  • interest factor   The decimal equivalent for an interest rate on a unit amount for a period of time. Computed by interest rate divided by number of days in a basic year times the number of days accrued.
  • interest rate (IR)   The rate a lender charges an individual to borrow money.
  • monthly periodic rate   The interest rate factor used to calculate the interest charges on a monthly basis. The factor equals the yearly rate divided by 12.
  • per diem interest   Interest that is charged daily; usually refers to the partial month's interest that the buyer pays on the mortgage covering the period from the day of closing to the end of the month.

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