The key idea
First compare offers financing the same amount. Then examine the payment including insurance, term, French APR (TAEG), total cost and cover together. A lower monthly payment can mean paying more over the full term.
Align the assumptions
Record each offer’s loan amount, deposit, term, rate type and repayment schedule. If these differ, separate the impact of a longer term from the price of the credit.
The offer may also set terms for payment changes, early repayment and insurance. ANIL explains that the offer’s TAEG covers interest and the fees included under the applicable rules.
Source : ANIL — Contrat de crédit immobilier (in French)
Compare the same amount and term first, then assess alternative terms separately.
Read the payment, APR and total cost together
The payment shows the regular cash commitment. The TAEG is a regulated measure for comparing financing costs; it does not replace the euro amounts or contract terms. Check the stated total cost, up-front fees and what each amount includes.
Finopact’s loan calculator isolates the effect of a nominal rate and term. It does not calculate a regulated TAEG or produce a bank offer. Add the actual insurance quote and financing fees separately.
- Payment: monthly affordability.
- TAEG: regulated comparison of offer costs.
- Total cost in euros: cumulative cost over the loan term.
Measure the cost of a longer term
Illustration: borrowing €200,000 at a hypothetical fixed nominal rate of 3%, excluding insurance and fees, costs about €1,109 a month over 20 years or €948 over 25 years. Total interest rises from about €66,207 to €84,527.
The longer term frees roughly €161 a month but adds about €18,320 in interest. These are not two actual offers: different rates, insurance or fees would change the comparison.
| Assumption | 20 years / 25 years |
|---|---|
| Amount borrowed | €200,000 / €200,000 |
| Fixed nominal rate | 3% / 3% |
| Rounded monthly payment | €1,109 / €948 |
| Rounded total interest | €66,207 / €84,527 |
Do not choose a term using the monthly payment alone.
Check insurance and budget headroom
Compare insurance costs in euros, when premiums are due and what each policy covers. Two prices may cover different events. ANIL also describes TAEA, a measure for comparing insurance costs.
Finally, compare the complete payment with ownership expenses and your cash reserve. A borrowing-capacity simulation tests a budget; the lender’s assessment and contractual documents establish the actual offer.
Source : ANIL — Garanties et coût de l’assurance emprunteur (in French)
- Request repayment schedules and a breakdown of fees.
- Compare cover, exclusions and insurance claim conditions.
- Recheck the budget including ownership costs and unexpected expenses.
Before you take the next step
- The loan amount and term in each comparison are clear.
- I check payments including insurance and the total cost.
- I review the TAEG and included fees.
- I compare insurance cover and leave room in my budget.
Try your own numbers
Terms in this guide
Educational content. Examples are illustrative and simulations are not personalised advice.