I have made a decision to fix all of my IP loans as I feel that it would give me peace of mind knowing that we will not be impacted by rate rises, and I feel that the fixed rates are really good at the moment. Im stuck deciding on the term. My IP's will all click over to P+I in 5 years from now. I hope to pay down my PPOR as much as possible in the next 5 years so that I can easily afford the P+I without any stress. I can do the following; 3 Years @ 4.09 4 Years @ 4.39 5 years @4.49% (will cost me $488 per month more than 3 year fixed) I'm torn because the 5 years will cost me $488 per month more than the 3 year fixed rate, however my concern is that if the bank decides to put interest rates up a few times, its likely to take only 1 or 2 interest rate rises for my rate to increase past the fixed rate, however $5800 a year seems like I may not be worse off than taking the gamble and hoping that nothing much happens with the economy in the 2 years after the 3 year fixed rate ends- though I do think the banks will want to continue increasing profits since they aren't giving money out as easily so I do think they will do this in the way of rate rises outside RBA decisions. I'm confusing myself the more that I think about it.