Most of the time, Australian borrowers ask their brokers about the best time to fix their home loan. They want to lock in the lowest possible rate, hence they often hold off fixing their loans on the off chance that the rates will fall.

Unfortunately, it is almost impossible to pinpoint the bottom of the rate market. The official cash rate is not a clear indication of that lenders will pass rate reductions onto their consumers. Official rates may be at a record low of two per cent at the moment, but more than 20 lenders have already raised their fixed and variable home loan rates.

However, there are some signs that can give borrowers an indication of the future of interest rates. They can use this to properly time their entry into the property market.

One way is to look at the latest happenings in the United States. Late last year, the US Federal Reserve raised interest rates for the first time in seven years due to "moderate expansion in economic growth." This gives more room for the Reserve Bank of Australia to cut cash rates once more in 2016. Local analysts have also factored in another rate cut this year.

Another is to focus on why they are fixing their loans rather than when. A split mortgage may be the solution to achieve a degree of repayment certainty and rate flexibility. In split rate mortgages, part of the loan is fixed and part is variable. It is actually a popular option for borrowers as one in every five loans nowadays are at least partly fixed.

Fixing a home loan should be based on necessity rather than interest rates. With this, borrowers can never go wrong.