I had a great chat with a financial dud about this last week. I also missed out on the horrific rate rises with a good fixed rate (WHEW!), but am back on variable.

In short the guy explained (without having a crystal ball of course), that it would probably be best to stay variable right now because it will take AGES for the rate to rise up to what the fixed rate is presently. It's a BIG jump from 4.99 to 6.74, you may as well stay variable and save yourself that extra $200 a fortnight.

Put the extra in the bank for now, you would be mad to fix at such a higher rate if you don't have to pay it. It's not like you are paying extra off the loan.

Don't forget to include any fees for the changeover - if its a few thousand (or even hundred) you are putting yourself behind again, unnecessarily.