By Charlotte GAUCHON
8 May 2025
The Annual Percentage Rate, better known by its French acronym TAEG, is a key element of any mortgage offer. It represents the total cost of the loan to the borrower, expressed as an annual percentage of the amount borrowed. Understanding its composition, knowing how to check it and knowing what recourse is available in the event of an error is fundamental for any borrower wishing to make an informed commitment. This standardised indicator makes it possible to compare different loan offers on a uniform basis, going beyond the simple nominal interest rate. Correctly calculating it is a legal obligation for the lender, and guarantees the transparency of the transaction. Definition and composition of the APR The purpose of the APR is to reflect the real cost of the credit to the borrower. It is not limited to bank interest alone (the nominal rate), but includes a significant proportion of the ancillary costs associated with granting the loan. The elements included in the calculation In accordance with the articles...
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