u/B0ree

We are looking at mortgages and I keep getting stuck on capzero variable loans.

We got two offers (both 25 years):

• Fixed: 3,56%
• Variable cap-zero 5/5 (+0 / -2): 3,44%

What is the catch here?

The variable starts lower and (as far as I understand) can only go down or stay capped. Even in the worst case it seems to stay at 3,44% which is still better than the fixed one.

So what am I missing? Why would a bank even offer this? And are you free to refinance both later or does the variable one lock you in somehow?