Reference rate

The reference rate which applies to NAB Tailored Home Loan - Variable is not the interest rate applying to your loan. Rather, it is a point of reference specifically set for your home loan which is used to work out the size of your standard repayments each year.

Repayments are increased by the difference between the prevailing interest rate and the reference rate, provided the interest rate is higher than the reference rate on or about the anniversary of the date of first borrowing in respect of a variable rate NAB Tailored Home Loan.

Example only
For example, if on the first anniversary of a variable rate NAB Tailored Home Loan, the interest rate is 10% pa* and your reference rate is 8%, then your repayment increases by 2% pa. So, if your initial monthly repayment is $800, then your repayment would increase to $816 per month. There's no change to your repayments if the prevailing interest rate is equal to or below the reference rate.

The reference rate agreed for your loan will depend on both the bank's and your own requirements. At NAB, we will discuss your requirements and then work out the best reference rate for you. Generally, the reference rate will remain the same for the term of the loan, but we may agree to change it if your circumstances change.

* The interest rate is an example interest rate to demonstrate how the reference rate operates. Refer below to the current interest rate applicable to the variable rate NAB Tailored Home Loan.

Fees and charges are payable. Full details of fees and charges and the relevant terms and conditions are available on application.