Traditionally speaking, it has long been held that home owners will fare better over the life of their mortgage if they elect to stick with a variable rate package rather than go for a fixed option. While fixing might protect you from rate hikes in the short term, many experts suggest that you’re more likely to win out and pay less interest by the end of your loan if you go with a variable product and ride the ups and downs of rate movements.

With most economists predicting inflationary pressures to continue into 2011 and 2012 – largely due to China’s obsession with our local resources – many are forecasting at least two more rate rises from the Reserve Bank this year and some are even suggesting an increase of 1% by the beginning of 2012.

We have all become sceptical of the big banks over time. In fact it’s practically impossible to go to a dinner party or backyard BBQ and not become embroiled in a heated discussion about the villainous practices lenders engage in. You could almost be forgiven for thinking obtaining a bank loan was like selling your soul to the devil himself!