[mamonster]

Most banks have had advertisements bordering on scam and malpractice to explain why the SARON adjustable rate is better than locking in a fix rate.

I've literally had to explain to like 5 people the amount of risk they were taking on by holding on to a 0.8% Saron adjustable instead of getting something like 0.9-0.95% fixed rate for 15! years. It's unfortunate that most people simply don't intuitively understand that when interest rates go from 1% to 2% your payments double.

[dbrgn]

If you can manage the risk of rising interest rate, then SARON isn't a bad choice. At least in the past, sticking to LIBOR/SARON was the cheapest option on average. But of course, if you can't handle the risk of rate increases, you shouldn't do it. (One option to reduce the risk is to pay the difference between SARON and the current fixed rates onto a dedicated savings account.)

But of course, if had gotten the chance to get a <1% 15-year deal, I'd have done it :) I'm slightly late to the party.