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

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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