Fixed rate bargains

A report by Fitch Ratings has found that Australians have one of the highest proportions of variable rate mortgages rather than fixed in the world, despite fixed rates currently being lower than variable. Competition between banks has seen heavy discounting of fixed rates and with the strong possibility of another increase in variable rates when the Reserve Bank meets next week now would be the time to switch to fixed. Around 85 per cent of mortgages in Australia are taken with a variable rate, the remainder are fixed or a combination of fixed and variable.