During the last two years we have talked about the historical minimum levels that have reached the average interest rates of mortgage loans; however, this would not be the only relevant variable when evaluating a loan.

Other items that the client must pay, such as credit commissions, insurance attached to the credit, among others, are also included and are part of the calculation of the Total Annual Cost, which is known as CAT.

This indicator makes it possible to compare the cost of a financial product, which, in addition to the interest rate, considers other concepts such as commissions, annuity, insurance, among others.

Of interest: Historical placement of mortgage loans by Scotiabank

Almost all bank customers compare the interest rates on mortgage loans, but the best thing to do is to compare the so-called CAT to find out which is the most accessible.

Not necessarily the lowest interest rate will represent the cheapest mortgage cost, since each product has different costs in its accessories.

For example, some do not charge certain commissions or insurance is less expensive and in the end a product with a higher interest rate could in the end have a lower CAT than other products.

The CAT published by financial institutions, generally appears in the advertising of the products and usually says: "This Total Annual Cost is reported for informational purposes and for its calculation based on the average interest rate of the product."

Check here: 42% of Infonavit credits are requested by Millennials

The so-called real CAT is personalized and this is due to the fact that financial institutions grant different conditions that depend on factors such as: risk profile, credit history, level of indebtedness, among others.

The particular experience also counts, as a person has a better credit history, financial institutions tend to offer better conditions on their products, such as lower interest rates and, therefore, a lower CAT.

It is important to take the time to know the benefits that each financial product offers, in this way you can choose the one that best responds to each need.

In Solili you can check available apartments in the Del Valle and Narvarte neighborhoods

Original note