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Cost of borrowing disclosure is the written statement a lender must give a borrower before a mortgage is finalized, setting out the total interest cost over the term, the annual percentage rate (APR), and all required fees in a standard, comparable format.
The disclosure sets out the principal, the interest rate, the annual percentage rate (APR), the term, the payment schedule, and prepayment charge information, all laid out the same way every lender is required to present it. That standard format is what lets a borrower actually compare two competing mortgage offers on an apples-to-apples basis instead of guessing which fine print matters.
Disclosure timing matters as much as content: it's meant to be given with enough lead time for the borrower to actually read and question it, not handed across the table alongside the signing pen. A broker's suitability assessment and the lender's cost of borrowing disclosure are meant to work together — one explains why the product fits, the other spells out exactly what it costs.
Federally regulated lenders: banks and other federally regulated institutions must provide cost of borrowing disclosure under federal cost-of-borrowing rules, with compliance overseen by FCAC.
Provincially regulated lenders: credit unions and other provincially regulated lenders are subject to parallel provincial disclosure requirements.
APR vs. the quoted rate: the disclosed APR reflects the interest rate plus most lender fees, so it's typically a little higher than the headline contract rate.
Not a closing-table formality: disclosure is meant to be provided early enough for the borrower to actually review and question it before committing.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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