What the monthly mortgage payment will be

What the payment shows and what it hides

The payment is the first thing everyone asks about and the last thing that should decide it. Two loans with the same payment can differ by tens of thousands of euro in total interest if their terms differ.

That is why total interest and total paid sit next to the payment here. Stretching the term lowers the payment and raises the interest — almost always by more than people expect.

The down payment

The larger it is, the smaller the loan and the better the rate the bank offers. The usual minimum is around fifteen percent of the price, but conditions improve noticeably above that.

Note that your savings do not all go into the down payment. Transaction costs — tax, notary, commission — run at around seven percent and are paid separately.

What this calculation leaves out

Property insurance, and often life insurance required by the bank. Account maintenance fees. An early repayment fee in the first years. Ask for the annual percentage rate of charge rather than just the interest rate — it captures most of these.

Frequently asked questions

How is the monthly payment calculated?

Using the annuity formula: equal monthly payments in which the interest share falls and the principal share rises. In the early years you are mostly paying interest.

Is a longer term better?

It lowers the payment and raises the total interest. Compare both numbers before deciding — the gap between 20 and 30 years runs to tens of thousands of euro.

What rate should I enter?

The one from your bank offer. The default is indicative and changes, and half a percentage point is significant over 25 years.

Does it include insurance?

No. This is loan repayment only. Insurance, account fees and any early repayment charge are added separately.