Should you choose a fixed or variable mortgage loan? It all depends on your tolerance to risk in the face of interest rate fluctuations.
A variable rate is generally more advantageous than a five-year rate on a given date. However, the variable rate may vary in time—as its name indicates—whereas the five-year rate remains unchanged for the entire five-year term. With the variable rate, you benefit immediately from rate decreases, but you may be affected when the rates go up.