MTIC: How much will you really pay for your credit?

O Saving in Minute it says that many of the customers who come to you have the habit of looking only at the value of monthly provision. Therefore, it simply explains what MTIC is and how this indicator can be used to compare credit proposals in a smarter and more informed way.

What does the acronym MTIC mean

The Total Consumer Imputed Amount is, in a simple and direct way, the sum of everything you will pay the bank until the end of your credit agreement. While tuition shows your immediate effort, MTIC reveals the absolute and final cost of your debt.

This huge figure includes not only the amount you borrowed, but also all the interest, the compulsory insurance premiums, the opening and management bank fees, and the taxes associated with the operation.

The illusion of the lowest monthly provision

Many customers choose a credit offer just because the tuition presented is cheaper. However, a minor benefit may hide a much longer payment period or hidden commissions.

By looking at the total amount to be paid, you can quickly realize that the option with the lowest tuition in the short term requires the payment of additional thousands of euros in interest over the years. The cheap comes often expensive when one does not look at the general picture.

How to use this indicator to compare bids

Whenever you request funding simulations in several banks, require delivery of the Standardised Information Sheet (the so-called FINE). In this mandatory document by law, the overall amount to pay is always in great prominence.

To compare two financial proposals fairly, make sure that the amount of the loan and the payment term are exactly the same in both simulations. Then, just look at the end of the page: the proposal that presents the lowest total value will mathematically be the most economical choice for your portfolio.

The importance of analysing associated insurance

In the specific case of housing credit, life insurance and multi-risks have a huge burden on the overall cost. A financial institution can offer a very attractive interest rate to capture your attention, but collect insurance policies with exorbitant amounts that cancel any savings.

When analyzing the overall cost charged to the consumer, it immediately realizes whether it pays to accept the insurance offered by the bank or whether it will be much more profitable to seek alternatives in other insurers to lower the final invoice.

You want to make sure you pick the cheapest credit on the market?

Evaluating financial proposals requires time and financial literacy. If you want to make sure you make the best decision, count on the specialized help of Savings in the Minute, credit intermediary and insurance that aims to save you time and money. They compare the overall cost of several banks themselves and deal with all bureaucracy without any burden on their budget. Make a simulation and receive a personalized proposal.