HSBC has set the bar nice and low with a five-year fixed rate of 5.09 per cent. That's the lowest five-year fixed rate on the Canstar comparison website.

With the standard variable rate of the big banks averaging about 6.15 per cent and a cash rate of 2.75 per cent - a 53-year low - just how much more inviting could the fixed rate options be?

The probable answer is, not much more. Unless you think Australia is heading for recession, that is.

Otherwise, it is hard to see the cash rate being cut from here by much more than half-a-percentage point.

Five years is a long time in the economic cycle, but since 1990 the cash rate has averaged 5.4 per cent.

The potential problem with taking a fixed rate over a long term is that it increases the likelihood that the contract with the lender is broken before the term ends.

Peoples' lives change. They upgrade their houses, pay off their house with an inheritance, or sell because of divorce or unemployment. And, depending on the cash rate at the time, thousands of dollars may have to be paid to the lender in "break" costs.

That's why is may be better to go with a short-term fixed rate or to split the mortgage into half variable and half fixed.

Several lenders outside of the big banks have one-year fixed rates at a interest rate of about 5 per cent. But those paying off their homes have to be careful.

Always ask for the "comparison" rate for the loan. It is a standard calculation that captures most of the fees and charges and expresses the total cost through the interest rate. It is based on a $150,000 with a 25-year term.

Twitter @jcollett-money