This is a very interesting article and a very popular argument. Should people use a variable rate mortgage or a fixed rate mortgage.
As a Realtor and base of history, people are always better off with a Variable rate mortgage than a fixed rate Mortgage.
Obviously this is a personal choice and Banks love you to lock in your mortgage. But base on historical data to calculate, Variable rate mortgage by far wins this argument.
There is a simpler answer to all this hysteria about mortgage rates going up. Don't lock in your rate. I know it's almost heresy to have a floating rate in a mortgage world dictated by Finance Minister Jim Flaherty calling up the banks and telling them their rates are too low, maybe he has no mortgage but we all do in the real world.
But the reality is that a variable rate mortgage tied to prime can still be had for as little as 2.55% from some major institutions while the comparable five-year fixed rate at 3.49%.