Apple introduced its monthly financing payment program in Canada back in August 2021.
Since then, the ‘buy now, pay later’ program has been powered by Paybright by Affirm, both online, and in-stores. The program allowed users to finance an iPhone, iPad or Mac over 12 or 24 months directly through Apple, and its seamless application process that gives buyers the decision right away was what made it an attractive option.
Since its introduction in Canada, the program has allowed buyers to opt-in for the ‘buy now, pay later’ program at zero percent interest rates for 12 or 24 months. This is changing now.
Apple’s financing page has been updated to reflect the new interest rates users would have to pay if they decide to finance their new device through Apple.
- iPhone: 7.99 percent APR for a 24-month term
- Mac: 4.99 percent APR for a 12-month term
- iPad: 4.99 percent APR for a 12-month term
What this means is that new iPhone buyers who go with Apple’s financing would have to pay 7.99 percent extra on the total cost of the device over 24 months. For example, a purchase worth $1,099 would come down to $49.70 per month, and over the period of 24 months, you’ll pay an extra $93.79 in interest.
It is worth noting that when the program launched in Canada, the Canadian federal funds rate sat close to zero percent, which meant that financing companies could offer attractive financing options with little to no interest rates. Over the past year, however, the rate has risen drastically, sitting closer to 5 percent, which means borrowing money isn’t cheap anymore.
It’s worth noting that offering interest-free vs. interest-bearing loan terms isn’t set by Affirm, and it varies by merchant.
Customers who want to buy an iPhone, iPad or Mac through Apple’s financing should be aware of the new interest rates and how they affect the total cost of their purchase. Alternatively, they can look for other financing options like Canadian carriers, or pay upfront if they want to save money.
Image credit: Apple