We find that people are increasingly asking about the movement with interest rates and in particular, fixed rates. It is unfortunate that we don't have the ability to accurately foresee interest rate movements but that is the reality.

 Should you really be interested in knowing what changes are occurring with interest rates, the best advice that we can offer is to monitor the major bank's websites. The banks are constantly reviewing policies with regard to lending and the interest rates, especially in the recent and current economic climate. The banks may not necessarily wait for a change in the prime lending rate before making adjustments to fixed rates. By maintaining a watch on the major banks, you will be better prepared to know when to think about fixing rates on a loan.

Whether to fix the interest rate on a loan is a matter of personal consideration. Individual circumstances need to be taken into account and due consideration given to the amount to be fixed and for how long. All too often, we hear stories about bad decisions being made and people being locked into interest rates that are higher than the variable rate of that time. Recent events would indicate that no one is in a position to foresee the future or we would not be in the position that we find ourselves. It is, therefore, paramount that a lot of thought be given to fixing all of or part of a loan. Be aware that even the banks are not in a position to know exactly what lies ahead but are likely to ensure that they are protected as much as possible.

What all of this means is that fixing an interest rate should not be taken lightly and the decision made only after obtaining professional advice, taking all of your individual circumstances into account.

* The advice given is of a general nature and does not take your individual circumstances into account. You should consult your accountant or seek other professional advice before maklng any decision of this nature.