Fix or Float?

Here’s what the Westpac Economist has to say this week on the question of Fix or Float

Among the current standard fixed rates, the best value for borrowers with a deposit of 20% or more probably lies in the two year and three-year terms. However, there is a possibility that fixed mortgage rates will fall even further over the weeks ahead.  Waiting a while before fixing might offer even better value.

Four- and five-year rates seem high relative to where we think shorter-term rates are going to go over the coming four or five years, though they do offer stability.

Floating mortgage rates usually work out to be more expensive for borrowers than short-term fixed rates, such as the six-month rate.  However, floating may still be the preferred option for those who require flexibility in their repayments.


Click here for the full Westpac Weekly Commentary


Karen Lewis December 17, 2014 Blog, Fix or Float?