The data show very few people did in fact lock in for five years and most took the 2.3% candy and now face resetting at rates ranging from 5.2% for one year to almost 6% for three years and 6.2% or more for five years.
If I were borrowing at the moment I would probably lock in for just 12 months. That is not because the rate is the lowest on offer. My current preference for fixing one year reflects the way in which the pace of growth in our economy and underlying inflationary pressures are being crushed quickly by the Reserve Bank’s belated but aggressive tightening of monetary policy.