Right now personally I think it is a crap shoot as which is the best way to go for a mortgage. Fixed, variable, short term, long term?? It is more about your risk tolerance and individual circumstances. If this is your first home there is nothing wrong with taking a 5 year rate just under 4% and knowing what your payment will be over the next five years. There is some security with that. If you are going to take your one year term ensure that you are making the same payments that you would at 5% and that will offset some of the interest rate risk. Also ensure that you have adequate prepayment privileges and that you take advantage of them.

Every now and then I end up reading your posts on this blog (redirecting myself from rfd) and can only appreciate you posting your life here. it’s great to see you have these agressive goals in life and at the same time you find time and money to balance your lifestyle.

This is certainly inspiring and I will most certainly see what is the best we can do as we get in to our first ever debt (Mortgage).

Currently as you may have seen in some of my posts, we are leaning towards 1 year fixed at 1.99% or may be 1.80% and either continue renewing for 1 year term or switch to variable. Without worrying much about where rates would be a year from now, what do you think of this strategy.