To float or fix long (or short)?

Deciding whether to fix or float your mortgage is becoming less clear. While short-term fixed or floating rates were recently favoured, Reserve Bank data shows a growing split as the Official Cash Rate may be nearing its trough.

Borrowers now weigh the certainty of a longer-term fixed rate against the potential for future savings with a shorter term. Anecdotal evidence also suggests debt-to-income (DTI) ratios are becoming a greater challenge for some buyers, making credit a key topic this year.