There’s been quite a bit of talk lately about whether now is a good time to fix your loan, as rates level off and the pundits continue to speculate where things may go from here.

And the answer lies with you. Because if you’re prepared for rates to stabilise or even drop over the next year even after you lock in a higher rate – you’re probably the sort of person (and personality) who is comfortable with taking that risk.

But if you’re living from hand to mouth each month and every rate announcement sends you into a hot sweat – you need to consider whether you would be better with a fixed rate that will give you more certainty around your payments, or indeed whether that hot sweat means you need to drastically revise your whole approach to managing your finances.

So before we put ourselves in one corner or another – let’s have a look at the pros and cons of both types of loans….. (more…)