While many experts and analysts believe that interest rates will drop reserve bank governor Glenn Stevens' comments have caused quite a bit of uncertainty.  If you're not the gambling type check out some of the 1-3 year fixed rates on offer.

When it comes to short term fixed rates there are 2 lenders that stand out from the crowd at the moment.  St George and Citibank.  While there are many other good offers out there both of these offer low initial setup fees and a great rate.

St George have 2 options that are very appealing in our opinion.  The 6.65% (CR8.06%) 1 year fixed introductory rate and 7.19% (CR7.96%) 3 year fixed rate.  The 1 year fixed introductory rate offers a very low rate for the first year of the loan.  After 12 months it reverts to the standard variable rate or you can pay a loan switching fee of $350 and switch to any other St George home loan.  The 3 year fixed rate loan gives you stability for the next 3 years and a great rate of 7.19%.  Both loans have a $10 per month account keeping fee and a $600 establishment fee.  St George are also extraordinary for lo doc loans.  They have a 3 year fixed rate lo doc loan with an interest rate of 7.19% (CR7.99%).  The only main difference between the lo doc & fully verified option if a slightly higher establishment fee of $750 and a $12 per month account keeping fee.

Citibank have recently overhauled their mortgage rates and dropped their 3 year fixed interest rate to 7.19% (CR7.69%).  Not only did they drop rates they also cut their establishment fee from $590 to $399.  In terms of rate and fees this represents excellent value and as far as account keeping fees are concerned Citibank have an $8 per month account keeping fee for their fixed rate loans.

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