Once again we are back to the great debate of whether to have a variable rate or fixed rate.

With the recent decrease across most lenders fixed rates, many home owners have taken up the current offers relieving the uncertainty of which way interest rates will go.

Whilst the current fixed rate offers may seem appealing, the guess is whether or not you’ll be held paying a higher interest amount on your mortgage should we see a rate reduction by Christmas as speculated amongst the Finance Industry and Westpac bank.   

At the end of the day, we cannot predict exactly which way interest rates will go. Whilst the RBA may drop the official cash rate by Christmas, it doesn’t necessarily mean the banks will follow.

To fix or not to fix needs to be your personal decision based on your individual circumstances. If you need that comfort of knowing how much your repayment is per month and have trouble with the uncertainty of a variable rate then perhaps a fixed rate is for you. However if this isn’t a problem, a variable rate may be more versatile or a combination of both.

Candice Turner