Floor Rate (Minimum floor rate)

The floor rate applies after the fixed-rate period ends, when the mortgage moves to a variable (follow-on) rate.

At that stage, the interest rate is calculated as:
Bank Margin + EIBOR
For example, if the bank margin is 1.89% + 1-month EIBOR and the minimum floor rate is 3.24%, the follow on rate would be calculated as:
1.89% (bank margin) + 3.634640% (1 month EIBOR as of 3rd March 2026) = 5.524640%

Since the calculated follow on rate of 5.52% is higher than the minimum floor rate of 3.24%, the applicable rate in this scenario would be 5.52%.

And if in the future the EIBOR drops to 1%, the calculated rate would be:
1.89% + 1% = 2.89%
And since this is below the minimum floor rate of 3.24%, the bank would apply 3.24%, as the interest rate cannot go below the minimum floor rate.

Summing up, while the follow on rate can move up or down depending on EIBOR after the fixed period, it will never fall below the shared minimum floor rate set by the bank.