1. You think interest rates are going to rise within the next few years

This is a tricky one because of course, no one knows with certainty what interest rates will do. Rates are super low at the moment, so If rates are already low, you don’t have much to lose by getting a fixed rate mortgage; if rates stay the same, you’re no worse off than you would be with an adjustable rate mortgage, and even if rates fall slightly, the difference probably won’t be that great. If they rise, however, you’re protected for the length of your term.

2. You’re a budgeter

The fixed in a fixed rate mortgage means both the principal of the loan as well as the interest amount, so the monthly payment is set in stone for the length of the term. If you’re a budgeter who needs – or wants – every dollar accounted for in your monthly household budget, a fixed mortgage payment is easy to stick onto your spreadsheet. It may be easier for you to set longer-term financial goals and save for specific items because you don’t have to keep a cushion available in case interest rates, and therefore your monthly payments rise.

3. You know that you aren’t going to need to break your mortgage

A majority of homeowners with mortgages will end up breaking their mortgages before the end of its term, and yes, refinancing is considered breaking your mortgage. Most people don’t plan on breaking their mortgage, but life can change quickly and fixed rate mortgages can have steep fees for breaking your mortgage. But if you’re absolutely certain that you won’t move or need to tap into your home’s equity for whatever reason, then a basic fixed-rate Mortgage might be a no-brainer.

4. You like predictability

Fixed rate mortgages tend to have higher interest rates than adjustable rate mortgages, but to some people, that doesn’t matter. People love to point out that adjustable rate mortgages tend to do better historically, but you have to take into account the climate and current market activity when you get your mortgage. If you’re one of these people who will sleep easy at night because you know how much you’re paying for the next 2, 3, or 5 years, then a fixed rate mortgage might offer you the best peace of mind.

You can set it and forget it. Realistically, many people wouldn’t be able to afford a big rate increase that you might see happen of the length of a 5 year term or 7 year term, and so would rather be able to predict their payments, knowing that they have a set period of time in which they can plan for a bigger mortgage payment if the interest rate is higher at their time of renewal.

5. You don’t get a thrill out of getting the best deal

Low interest rates are important, but if the difference between a 2.6% interest rate and one that’s 2.9% doesn’t excite you, then a fixed rate mortgage might suit you best. You won’t get the lowest rate in the market with a fixed mortgage, nor will you benefit from any drops of the prime rate, but for some people, predictability and stability are most important overall than when it comes to their mortgage payments.