With never seen before lows for fixed interest rates, significantly lower to variable rates (comparing within the same lender), it's getting tempting to lock in a fixed rate for up to 2 years. Even more so with generous cashback deals from Westpac ($3K per mortgage).
However, I've always believed that the banks know better (than most of us), and the fixed rate is probably a forecast of where rates are going - locking ourselves into a fixed rate seems to be a 'trap' for us as they can foresee rates swinging to their favour in the long term.
Speaking to a few mortgage brokers I know, some have said people never win on fixed rates, whereas some say there's a small chance and people usually use it only for cashflow stability.
Bear in mind, 'coming out ahead' of the banks to me is defined as paying less interest across the lifespan of the fixed rate, compared to a variable rate mortgage of an equivalent term.
I'd like to know how many go for fixed rate mortgages, and if you've come out ahead before it would be great to hear the circumstances (what years, rate movements, etc). FYI I might not be responding much, as I'm just trying to survey the OzB community, and generate discussion.