To float or fix long (or short)?

Choosing a mortgage is increasingly complex as the Official Cash Rate may be nearing its lowest point. While short-term or floating rates were recently favoured, Reserve Bank data now shows a growing split, with more borrowers considering longer-term fixed rates for certainty.

Borrowers must weigh the immediate cost against the value of stability. This decision is influenced by factors like debt-to-income (DTI) limits, which are becoming a challenge for some individuals, particularly first home buyers.