What is a step down rate?

Author
MyProperty Namibia
Namibia's #1 independent property portal

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.

Home Loans Property News
How to make the best offer to purchase
Buyers
How to make the best offer to purchase
03 May 2024
You’ve found your dream home and are eager to make it your own - but before you can do that, you will need the home owner to accept your offer to purchase. You might even be competing with other buyers - here's how you can put yourself in the best position to have your offer accepted. 
read more
Financial questions you should ask before applying for a home loan
Buyers
Financial questions you should ask before applying for a home loan
11 Apr 2024
For first-time buyers, the home loan application process can feel quite overwhelming but if you are prepared for all the financial questions ahead you will be in a much better position to have your bond approved.
read more
A guide to determine how much house you can afford
Buyers
A guide to determine how much house you can afford
06 Mar 2024
Buying a home is both exciting and stressful - determined by an infinite number of factors that vary depending on the lifestyle you want or the needs you have. However, everyone’s journey starts at the same place - how much you can afford to spend on a home. 
read more
Money matters: Avoiding financial mistakes when buying your dream home
Buyers
Money matters: Avoiding financial mistakes when buying your dream home
15 Sep 2023
Before you buy your dream property, it's essential to have a frank discussion about an important aspect: your financial fitness. The journey to homeownership isn't simply about love at first sight—it also demands keen financial stewardship to maintain your financial health. Be assured: the moment you decide to delve into the world of property ownership, a need arises to buckle down and meticulously work through your finances to assess where you are.
read more
Real Estate Tools
Bond Calculator
Calculate the estimated repayments on a home loan and savings with extra payments