An interest rate used as an index rate. For example, if a loan pays interest at a rate of 50 basis points above the 6-month LIBOR, the reference rate is the 6-month LIBOR.
On 1 July 2002 the reference rate replaced the discount rate, which used to be set by the Swedish National Debt Office. The reference rate is determined by the Riksbank semi-annually and is based on the repo rate that applies at the end of the past six months rounded up to the nearest whole or half percentage point.
A feature, offered by NAB, which lets the borrower 'step up' their home loan repayments each year of the loan's variable rate period to help pay off the loan faster. Find out more.