Buying a home is one of the toughest life decisions. Making such a big financial commitment probably for the first time in your life with a very vague idea about the property type and location would not help you gain the best out of your investment to secure a healthy space for your family. The home buying process itself involves so many stakeholders and communication among these parties that are often not that clear. In addition, based on each one of our personalities we attain inherent behavioral biases in financial decision making, and real estate is one of them.
Fixing your home loan over a certain period gives you a level of certainty from the future interest rate movement. It also offers you peace of mind as your monthly repayment on a home loan is fixed no matter what happens during that period. However, things do not always go the way we want. When interest rates move faster and current rates are much lower than what you have fixed your rate at, the same decision for the fixed-rate arrangement starts becoming a bit of a burden.