Let’s break it down to see what’s going on.

First up, December saw the official cash rate remain on hold at 1.5%.

Interest rates are as low as I have ever seen them. For owner occupiers paying principal and interest, the home loan market has never been better. And I don’t think these rates will be materially lifting any time soon. The Reserve Bank never gives much away in terms of future rate decisions, however sluggish wage growth could see rates stay on hold a while longer.

Meanwhile, the global economy continues to pick up, and the Reserve Bank estimates our economy will grow by 3% over the years ahead. Not a bad result if we can get there.

Earlier in 2017, skyrocketing property prices in Sydney and Melbourne saw a clampdown on investment lending by banking regulator APRA . This led to higher interest rates for some property investors and a push for borrowers to switch to principal and interest loans.

The thing is, with interest rates at near-record lows, there’s more scope for rates to rise than to fall though I don’t think this will happen for some time to come. And given high household debt and go-nowhere wage growth, any future rate hikes could bring a financial squeeze.

That’s why it pays to take action today.

Trimming even just a fraction off your home loan rate – or safeguarding your repayments with a fixed rate loan, can see you kick-start the New Year with a bit of extra cash in your wallet or protection against any rate hikes. Talk to your Aussie Broker for a review of your home loan, and enjoy the Christmas break knowing you’ve got your home loan stitched up for 2018.