While that short window of opportunity, where a number of fixed rates were much more attractive than variable rates has disappeared, there are still good deals to be found. And if certainty of payments is what is important to you, a fixed rate should be considered.

The likelihood of additional interest rate rises this year has once again caused home loan borrowers to consider whether switching to a fixed rate loan is the way the go. With the consensus view tipping at least one more a 0.25 percentage point rise sometime in the next six months, it makes sense to look at what deals are on offer.

With increases by the banks outside of official movements in the cash rate by the Reserve Bank, has led to most rates on standard variable loans now being above 7 per cent, with most of the major banks around 7.5 per cent. While fixed loans don't suit everyone, there are plenty of fixed rates still on offer below 7 per cent for periods of one to five years. While switching costs and loan flexibility must be taken into account, fixing at least part, or even all, of the home loan should be considered by those feeling the mortgage pinch in the current climate.

Competition continues

While rates may increase shortly, there is still high competition in fixed rates these days and significant variation in the market. Check out both bank and non-bank loans. It certainly pays to shop around with up to 1 whole percentage point difference at any one time between rates for a given fixed period. That's $125 a month difference in repayments on a $200,000 loan.

Check loan flexibility

Fixed rate loans won't suit all borrowers. Restrictions on extra repayments and early payout attached to some fixed rate loans can prevent you paying off your loan as quick as you might like, but flexible fixed loans are around for those who look allowing some principal payments, and they are becoming more flexible everyday.
Remember too that fixed rates usually mean committing to an interest rate for a period beyond anyone's ability to predict rate movements. Trying to pick whether fixed or variable rate borrowers are going to come out ahead over this time period is always a gamble.
There is also the cost of switching to consider - charges vary but they can outweigh any savings on the rate.

A decision to fix does at the very least offer insurance against variable rises that might extend repayments beyond the limit of your finances. For those who value the certainty of knowing just what their repayments are going to be over the next couple of years, it may well be better to lock in now for example Property investors and owner-occupiers on a tight budget. And for those borrowers not in a position to make extra repayments or not likely to pay out their loan during the fixed term, fixing is attractive.

How to Choose a Lender or Broker

At this point in your home search, you've decided that you're ready to find a lender or broker. Where do you start?
Referrals from friends, family, trusted co-workers -- anyone who bought a home recently and was happy with the service they received.
Compile a list of 4-6 lenders, brokers, and correspondent lenders. Some good sources for candidates include:
A large, national bank with an advertised rate.
Any banks or credit unions with which you currently have savings or investment accounts.

Online review sites, such as http://www.homeloansaustralia.com.au
Once you've selected a lender or broker, you can work with him to secure pre-approval.