SAC or Price: which amortization system should I choose?
In short: Under the SAC system, payments start higher and decrease over the life of the loan — and it costs roughly 10% less overall. The Price table has fixed payments from start to finish, which makes monthly budgeting easier, but results in more interest paid. The right choice depends on your current income and your tolerance for higher payments early on.
What is SAC
Under SAC (Constant Amortization System), the principal portion of each payment stays the same — what changes is the interest portion, which falls as the outstanding balance shrinks. The result: high payments at the start, decreasing over the life of the loan.
- Higher share of income committed in the first years
- Lower total cost — you pay less interest overall (~10% less than Price)
- The outstanding balance falls faster — lower risk over the long run
What is the Price table
Under the Price table (French Amortization System), payments are fixed for the entire term. The internal composition varies: early on, the payment is mostly interest; over time, the share going to principal grows.
- Lower initial payment than SAC
- More predictable for budgeting
- Higher total cost — you pay more interest overall
Practical comparison
A R$400,000 mortgage at 11.5% per year plus the TR reference rate, over 360 months:
- SAC: initial payment ~R$4,950 / final payment ~R$1,200 / estimated total paid: ~R$730,000
- Price: fixed payment ~R$4,100 / estimated total paid: ~R$800,000
Approximate figures, without projecting the TR rate — use a bank’s simulator for exact numbers.
When the bank decides for you
If the SAC system’s initial payment would commit more than 30% of your documented monthly income, the bank won’t approve SAC — only the Price table, whose initial payment is lower. In that case, the bank makes the choice, not the borrower.
Example: income of R$12,000 → maximum commitment of R$3,600. If SAC generates an initial payment of R$4,200, the bank will only approve under Price (payment of R$3,600 or less).
Which should you choose?
- Choose SAC if: you have stable income, can absorb the higher initial payment, and want to pay less over the long run
- Choose Price if: your budget is tighter in the first years, you prefer predictability, or the bank will only approve this system
For most borrowers with sufficient income, SAC is the more cost-effective choice.
Related questions
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- What’s the minimum down payment to finance a property?
- Can I use my FGTS balance toward mortgage financing?
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Want to run a SAC vs. Price simulation for a property you’re eyeing? Talk to Regente’s Sales Manager.