An adjustable rate mortgage is right for some people. If you think interest rates are heading downwards, then you'll benefit from an adjustable rate mortgage

But if interest rates rise... so will your mortgage repayments.  However, if your judgment is that interest rates will fall over the next few years, then you can get a much better deal than going fixed rate.

How does an adjustable rate mortgage work ?  Basically, the lender adjusts the rate depending on the federal base rate.  Some deals track the base rate e.g. +1 %, +2 %

Other deals may give an introductory special offer e.g. -0.1 % off base rate  for 2 years, reverting back to + 1.5 % after that.  Beware that these type of special deals usually come with redemption penalties attached.

Redemption penalties can run to 3% of your total loan, if you redeem early.  Usually the rate reduces on a sliding scale towards the end of you special rate period.

So, if you don't need the certainty of a fixed payment every month, an adjustable rate mortgage might be just what you need.