Cheap, short home loans offer instant savings for home owners who are on floating rates, making fixing your mortgage more appealing than ever.  But if you want certainty for more than a year or two, you face higher rates.

The major banks have made moves that have cut mortgage rates recently and it makes fixing for the short term appealing compared with floating rates, which are up around 6.4 or 6.5 per cent.

Currently the only disadvantage of fixing is losing your short term flexibility, meaning you may miss the absolute bottom of the market if interest rates fall further than predicted, says ASB's Nick Tuffley.

Source: Stuff.co.nz