> "Rising international interest rates which could increase our rates or limit any lowering by the banks as they get their funding overseas."
I am pretty certain this is what is in store, although the local media doesn't publicise it. The RBA can only loan a limited amount, and the balance will be from international markets which means that at very least, riskier loans must reset at a higher rate.
You make two points here : rising rates, and lack of ability to handle a lost job. Jobs are looking ok for the moment, I would be concerned about those fixed rates resetting shortly; if they must sell they should know that the market sets its price at the margins.
