What is a step down rate?

Author

MyProperty

Regardless of whether the variable home loan interest rate falls or rises, the reducing interest rate or step down rate option will apply for the agreed period (usually less than 5 years).

This facility guarantees that your interest rate will decrease by a set percentage every three to six months for the agreed period. Should this option be terminated before the expiry date an additional finance charge can be levied by the lender.

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