What is a step down rate?

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MyProperty
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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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