If you are a mortgage holder you are likely to be thinking what should I do given that the Australian economy is slowing, the world economies are sluggish or recovering, and the big 4 banks are increasing rates so to cover future regulatory required increased capital costs. Economists say rates will reduce by at least 1 possibly 2 cuts over the next 6-12 months, so you must be as confused as I am! This is why you need to not worry about the external environment and focus on your own circumstances. This is a great time to lock in given rates are still very low but make sure if you do this then that means your staying put in your own home for this length of time. If you are moving or your personal circumstances look like changing then stay with variable rates. Hopefully this tip will unlock your confusion!
