The TIN (nominal interest rate) is the percentage the bank applies to the outstanding principal to calculate the interest on each payment. It's the number that usually appears largest in advertising, but on its own it isn't enough to compare offers.
Fixed, variable, or mixed TIN
- Fixed: the same TIN for the entire life of the loan.
- Variable: TIN = reference index (usually the Euríbor) + a spread agreed with the bank.
- Mixed: fixed for the first few years and variable for the rest.
TIN vs. TAE
The TIN doesn't include fees, linked insurance, or the effect of compounding frequency, which is why the TAE is always the real benchmark for comparing products.