Apple no longer offers interest-free iPhone financing in Canada
We have bad news to those Canadians who are thinking about financing their next iPhone, iPad, or Mac from Apple. These consumers will no longer be able to escape having to pay interest on the purchase. Apple announced through a support page that future iPhone, iPad, and Mac purchases in Canada financed through the online Apple Store will come with an annual percentage rate (APR) in the range of 4.99% to 7.99% for purchases to be paid off over 12 or 24 months. And of course, those rates are subject to change.
Monthly financing comes from Affirm, a U.S.-based company that provides point-of-sale financing to consumers. The current offers from Affirm available through Apple include:
- iPhone financing 7.99% APR for 24 months
- iPad financing 7.99% APR for 12 months
- Mac financing 7.99% APR for 12 months.
Those interested in financing through Affirm can apply through the link on Apple's support page and getting pre-qualified could make things easier when pre-ordering your next iPhone this September. By the way, Apple gave no reason for this change although it might have something to do with the always volatile foreign exchange market.
Apple's own financing options in the U.S. are not offered in Canada such as the iPhone Upgrade Program, Apple Card Monthly Installments, and Apple Pay Later. In the U.S., consumers can still finance through Apple with 0% interest, and certain stores and wireless providers also offer interest-free financing.
Apple posts Affirms current financing offers
As an example, Apple shows a purchase in U.S. Dollars of an iPhone 14 Pro Max with 128GB of storage which costs $1,099. Through Affirm, you'll be making 24 monthly payments of $49.70 which works out to a total repayment of $1,192.79 or an additional $93.79 in interest. This doesn't include taxes and shipping charges which must be paid in full at the time of purchase. That same purchase made through Apple in the U.S. would charge you no interest which means that you'll pay $45.79 a month over 24 months.
Interestingly, Google does not offer any financing options at all for its devices purchased from the Canadian Google Store although the Google Store does offer financing (and interest-free financing at that!) on purchases made through its U.S. website.
What this all means is that you might live on the same continent as those Americans who don't have to pay any interest when they finance their iPhones or Pixels, but if you love curling, can explain to the average Johnny Appleseed how getting rid of the red line opened up the NHL, and put maple syrup on everything including steaks, you are going to have to pay more if you finance your iPhone or iPad purchase through Apple. The problem is that Canadians don't have many financing options offered by Apple outside of Affirm.
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