To float or fix long (or short)?

Deciding whether to float or fix your mortgage is now more complex. While short-term rates were popular, Reserve Bank data shows a growing split, with more borrowers choosing longer-term fixed rates for certainty.

Homeowners are weighing the benefits of paying more now on a floating rate for a potentially lower future rate against the security of a longer fix. First home buyers continue to utilize low-deposit lending, though some borrowers are finding new debt-to-income (DTI) limits a challenge.