Would like to know about 3-year variable rate mortgage. I'm planning to start a business and my friend asked me to secure a 3-year mortgage. While searching the internet for more details, I could find the posted rate of 3-year variable rate is lower than that of a 2-year to the 10-year closed mortgage.

I have seen the posted rate for a 3-year variable rate mortgage to be 3.45% on one of the sites and it varies from 3.49% to 5.2% in case of 1-year to 10-year closed mortgage.

So, I believe it would be a better idea to choose the one with the lowest interest. And another advantage is, we can switch the mortgage type after 3 years and do not have to wait for a long time. So, I want to know about the risks if any. Those who are experienced, please let me know the details at the earliest. Thanks in advance!