The Tile bit (#562) will work to cut tile that is suitable for a wall only.  If the tile you are working with could be used on a floor or is suitable for foot traffic, the #562 cannot cut that.  It can cut standard ceramic wall tile.  This is generally white on the back and very high gloss color on the front.  If you are trying to cut a hole in a standard ceramic wall tile to replace a broken piece, we recommend you stabilize the tile you will be cutting in a vise or holder of some type.  Then start the cut with the accessory at 45° to the material - not 90°.  Once the hole is started you can bring the accessory and tool to a full 90° to make the remainder of the cut. Remember the fluting is not fully on the tip of the accessory - so starting an aggressive cut of this nature with the tip will risk ruining the accessory.