How this mortgage calculator works out the payment
The payment comes from the French amortisation formula: payment = C · i / (1 − (1 + i)−n), where C is the loan, i the monthly interest rate (the TIN divided by 12) and n the number of payments (years times 12).
Each payment has two parts: interest on what you still owe and repayment of capital. As you owe a lot at the start, the first years are mostly interest. Open the amortisation table to see how the split changes year by year.
What you pay and what the bank pays
Since late 2018 the bank pays the stamp duty (AJD) on the loan deed, and since Law 5/2019 on property lending it also pays the notary, land registry and agency fees for the mortgage. You pay for the valuation and, if you want one, a copy of the deed. The costs of the purchase itself (ITP or IGIC, notary and registry for the sale) are still yours: you will find them in the buying costs calculator.
Fixed, variable or mixed
With a fixed mortgage the TIN does not change and the payment you see here is the one for every month. With a variable one, the rate is Euribor plus a margin and is reviewed every six or twelve months: enter today’s rate and try one or two points more to see how far the payment would rise. With a mixed one, work out the fixed period first and then the variable one with the remaining capital.
Frequently asked questions
How much is the monthly payment on a €200,000 mortgage?
Over 30 years at 2.7%, about €811 a month. Over 25 years, about €917. Move the term in the calculator to see the difference in total interest.
How much do banks lend?
For a main home, usually up to 80% of the price or the valuation, whichever is lower. For a second home, around 60 to 70%.
What is the difference between TIN and TAE (APR)?
The TIN is the interest rate applied to the loan and is the one used to calculate the payment. The TAE adds fees and tied products, and is used to compare offers between banks.
Is a shorter term better for me?
You pay less interest overall, but the payment goes up. If the payment over fewer years is still comfortable for your salary, it usually pays off. If not, you can take more years and pay off early when you have spare money.