Interest rates have been on hold for some time now, with the cash rate at a wonderfully low rate of just 2.5%.
But what does this mean for people who are paying off a mortgage?
Finance experts are tipping official interest rates are likely to start rising in 2015, and they say now is a good time for people to do a stock-take of their home loan.
What should home buyers do?
Several banks recently dropped their five-year fixed interest rates to between 4.95% and 4.99%.
And even more exciting is a one year fixed rate that has just crossed our desk of just 3.99% fixed for one year!
Money Expert, Michelle Hutchinson says borrowers should consider taking advantage of the competitive deals on offer.
"Interest rate hikes are on the horizon and look set to start rising very soon so borrowers need to start preparing now before it’s too late," she says.
"For instance, variable rate borrowers with a $300,000 mortgage will need to factor in an extra $300 per month to keep up with repayments should their interest rate increase by 150 basis points."
While things are predicted to probably remain steady for the rest of 2014, that won’t be the case forever, given that interest rates are cyclical.
As such, now is probably a good time to review your overall debt position, get advice and determine whether you want to hedge your position a little by locking in a fixed rate. And remember that it doesn’t have to be all or nothing either. Many of our clients choose to have a combined strategy, with part of their home loan fixed and part on a variable rate.
If you haven't already done so, look seriously into reviewing your home loan provider and your current loan arrangements.
Calling us is a great first step to make the process as easy and quick for you as possible.
The information in this article is of a general nature only and does not consider your personal objectives, financial situation or particular needs.