What is MTIC, and why is it more important than the Spread?
The total amount payable is everything you will pay over the life of the loan — capital, interest and charges, added up. It is the figure that shows the real cost, where the spread alone falls short.
In this guide
What it is
In Portugal it is called MTIC — the total amount payable by the consumer. It is the loan amount plus every charge you will pay over the contract: capital, interest, fees, insurance and taxes. In short: the total you will repay, start to finish.
Why it says more than the spread
The spread is only one piece. On its own it does not show the effect of insurance, fees, the account or tied products. The total amount payable rolls it all into one figure — and that is where two offers with similar spreads turn out to differ.
How to use it to decide
Ask for each offer's total amount payable and compare them side by side, at the same term. Alongside the APRC, it is the figure that best captures what each loan truly costs. You will find it on the ESIS.
Worked example
Two offers with the same €750 monthly payment. Bank A adds up to a total amount payable of €290,000; Bank B, €305,000, on higher insurance and fees. The payment misleads — the total amount payable shows the €15,000 gap over the life of the loan. (Example figures.)
Sources
Susana Vasconcelos
- Intermediária de crédito autorizada pelo Banco de Portugal n.º 0008496
- Mais de 10 anos na banca