The decision to choose floating rate or fixed rate should depend on their difference, various economic factors and outlook. One important factor that can be easily known is the difference between floating and fixed rates and the level of interest rates at the time.

You should also factor in your risk appetite while choosing between fixed and floating rates. If you want stability in terms of cash flow, a fixed loan that remains the same during the entire term might be a good option. However, you need to ensure that the interest rate is low enough to enter into a long-term best home loan loan contract .