Mortgage CAT vs. interest rate

The mortgage interest rate determines periodic financing interest on the outstanding balance. Mexico’s CAT (Costo Anual Total) is a standardized annual cost measure that can incorporate other inherent charges under its methodology.

At 9% nominal annually, the simple monthly rate is 0.75%; first-month interest on $2,000,000 is $15,000. CAT may be higher because insurance, appraisal, fees and other required costs affect the effective cost.

The mortgage calculator uses the contractual rate to estimate principal and interest; it does not use CAT as the amortization rate. Compare offers using the same principal and term, then review the official CAT, initial cash, all-in payment, total repayment, insurance and prepayment rules.

CAT is a Mexican metric and is not automatically equivalent to another country’s APR. See CONDUSEF’s home-purchase guidance.