{"id":17214,"date":"2023-04-21T03:01:17","date_gmt":"2023-04-21T03:01:17","guid":{"rendered":"https:\/\/hypotheques.ca\/blogue\/elementor-15659\/"},"modified":"2023-07-13T15:44:42","modified_gmt":"2023-07-13T15:44:42","slug":"what-is-tac-and-why-is-it-important","status":"publish","type":"post","link":"https:\/\/hypotheques.ca\/en\/blog\/what-is-tac-and-why-is-it-important\/","title":{"rendered":"TAC: Size and calculation for mortgages"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"17214\" class=\"elementor elementor-17214 elementor-15659\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1e9cb7c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1e9cb7c\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-674a04d\" data-id=\"674a04d\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5cce7b2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5cce7b2\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5fbc8b4\" data-id=\"5fbc8b4\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ed59f5b elementor-widget elementor-widget-text-editor\" data-id=\"ed59f5b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2><b>What is TAC and why is it important?<\/b><\/h2><p>When looking for a mortgage in Quebec, understanding the APR (Annual Percentage Rate of Borrowing) is essential to making an informed decision.<\/p><p>In this article, we will explain what APR is, why it is crucial, and how to calculate it to optimize your mortgage choice and better manage your budget.<\/p><h2>What is TAC?<\/h2><p>The APR is a more comprehensive measure of the costs associated with a mortgage, taking into account not only the\u00a0interest rate, but also other fees\u00a0<a href=\"https:\/\/hypotheques.ca\/wp-content\/uploads\/2023\/03\/Sans-titre-17.png\">(closing costs)<\/a>. This gives you a more accurate picture of the expenses you will incur when you take out a mortgage.<\/p><h2>APR vs. interest rate<\/h2><p>The\u00a0interest rate\u00a0is the initial cost of borrowing, while the APR includes the\u00a0interest rate\u00a0as well as the charges associated with accessing the loan.<\/p><p>The APR is therefore generally higher than the\u00a0interest rate.<\/p><h3>How to calculate the TAC<\/h3><p>To calculate the TAC, you will need the following information:<\/p><ul><li>Periodic\u00a0interest rate\u00a0on the loan<\/li><li>Total principal amount of the loan<\/li><li>Number of days in the repayment\u00a0period<\/li><li>Amount made in monthly payments on the loan<\/li><li>Interest\u00a0and fees charged over the\u00a0life of\u00a0the loan<\/li><li>Applicable discounts<\/li><\/ul><p>The basic formula is: ((Fees +\u00a0Interest) \u00f7(Principal) \u00f7 (Number of days to\u00a0term) x 365) x 100<\/p><p>The APR is an essential tool for comparing mortgage offers and understanding the true costs associated with borrowing. By taking the APR into account, you will be better informed to make an informed decision on the mortgage that best suits your needs and financial situation. Mortgage Brokers at Mortgages.ca are here to provide you with personalized advice and to optimize your mortgage experience.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>When you take out a loan, the creditor will tell you the base interest rate beforehand, which is obviously crucial information. The interest rate is simply the percentage that the lender charges to extend credit to you, without taking into account any other costs associated with the process.<\/p>\n","protected":false},"author":4,"featured_media":16626,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[280,281],"tags":[],"class_list":["post-17214","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-home","category-mortgages"],"acf":[],"_links":{"self":[{"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/posts\/17214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/comments?post=17214"}],"version-history":[{"count":7,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/posts\/17214\/revisions"}],"predecessor-version":[{"id":17704,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/posts\/17214\/revisions\/17704"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/media\/16626"}],"wp:attachment":[{"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/media?parent=17214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/categories?post=17214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/tags?post=17214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}