Mortgage annuity

The mortgage annuity corresponds to a regular payment, generally annual, made by the borrower to repay their loan as well as the payment of interest. This payment is spread over a period defined at the signing of the contract and remains in principle identical when it is a fixed-rate loan.

What is a mortgage annuity?

The mortgage annuity is a periodic payment (often monthly) made by the borrower to repay their mortgage loan. This payment takes place over a period agreed at the signing of the loan and generally remains constant in the case of a fixed rate.

What does a mortgage annuity include?

Each annuity is composed of two essential elements:

• Interest: this represents the remuneration of the bank. Its amount depends on the interest rate applied, which may be fixed or variable.
  
• Amortised capital: this is the part of the borrowed sum that you progressively repay at each due date.
  

Over time, the proportion between interest and amortised capital evolves: at the beginning, the interest represents a larger share, then the repayment of the capital becomes predominant.