Would you recommend a fixed-rate or an adjustable-rate mortgage?

My recommendations always depend on the interest rate environment.

Generally, there are 4 different interest rate scenarios.

1. When Interest rates are rising - take fixed rates to secure against the rise. An example of this was between 2015 and 2018.

2. Interest rate already stopped rising - take floating rate because the only direction left is down and the spreads at this stage are very low eg : 3M SIBOR + 0.2%. This was how it was like in 2018.

3. When interest rates are dropping - take a floating rate because rates are dropping and the spreads are still relatively low. In May 2019, you could get a package at 3M SIBOR + 0.5%.

4. Interest rates are already low - take a fixed rate or floating rate depending on your view of how long before scenario #1, the rising interest environment will return.

Today, we are at #4.

Your risk level and your outlook on the economy, will determine if fixed or floating rates are more suitable for you. The more risk averse will probably choose fixed rates for the security, while those who are willing to bet on interest rates remaining low should go with floating rates.