Mortgages, Which One?

If you are independently wealthy and will not lose your home if interest rates double then consider the variable rate mortgage. If you are like most home owners then do not take that chance. Interest rates are extremely low right now. If I was in your position I would take the 5 year fixed rate mortgage.

It is always good if you can to start paying back the Principal of your mortgage and a fixed rate term will offer a better interest rate for now. The problem is for how long to fix it and with the interest rates dropping all over the world these days it is hard to choose which term. Make a commitment as to your plans to stay in your house and not downsize in case you need to transfer your mortgage and break your rate. Also look at being able to make lump sum payments off your Capital as some banks do offer this. Reducing the amount you owe ultimately reduces your interest costs. Look at splitting the amount you owe and take out different fixed terms to cover your bases.

Look out for a solid low fixed rate and stay with that.

The only who can decide what to go with is you, I know you are seeking advice, but what's good for someone else may not be good for you.