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Fixed or variable mortgage? The choice of home loan isn't as simple as you might think

Written by Kevin Davis, Emeritus Professor of Finance, The University of Melbourne

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In times like these, when there is great uncertainty about what will happen to interest rates, borrowers get lots of advice about whether to go fixed or variable. Unfortunately, a lot of it is not well founded.

For example, anyone who tells you to lock a fixed rate mortgage now before rates rise, is basically talking rubbish.

The idea...

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