The interest on your home loan is composed of a reference rate and a margin
The total interest rate on a home loan consists of the customer-specific margin and the reference rate. The reference rate can be
- the 3, 6 or 12-month Euribor rate,
- a fixed interest rate or
- the Nordea Prime rate.
Your margin will remain the same throughout the loan period, whereas the reference rate will fluctuate according to the market interest rates. However, if you have a fixed rate, it will remain unchanged. The most commonly used reference rate in home loans is the 12-month Euribor.
You can check the reference rate on your home loan easily in Nordea Mobile or Netbank under your loan details.