There is a lot of speculation out there about interest rates at the moment and are they going to reduce further or have they "bottomed out"? It's so hard to predict especially since the Global Financial Crisis (GFC). You need to be aware there is always more to consider than obtaining the best interest rates. Such as:
- Do I intend to shift soon?
- How risk adverse am I? What is my risk profile?
- What are my future plans?
Fixing your interest rate is now always about obtaining the best interest rate it is also about considering the best structure for your current and future plans.
Here is a brief (very brief) summary of what Tony Alexander is thinking from BNZ.
"Banks are competing strongly with discounted short term fixed rates so that is where I would look"