Not yet time to fix: Kevin Young

Home buyers and property investors are being warned about fixing loans despite "aggressive" advertising campaigns from the banks.

With latest finance figures showing that the number of fixed loans during July 2013 jumped by 120% compared to July 2012, The Property Club's president, Kevin Young, is warning that investors should not yet give in to the pressure of advertising campaigns.

“During July 2013, a total of 9,932 dwellings were financed though fixed loans compared to just 4,509 during July 2012," said Young.

“In response to marketing campaigns from the big banks to fix, the home lending figures show that the number of fixed home loans in Australia began to spike during April of this year and have remained at around 10,000 every month since that time."

Currently, he said that he believes rates will drop even further, despite the campaigns from banks telling property buyers and owners to fix their rates.

He said that he isn't fixing for the properties in his portfolio either.

“The RBA is under pressure to drop interest rates to stop Australia’s unemployment rate rising even further with predictions it will shortly pass the 6% threshold. The latest job vacancy figures show that job vacancies in the year to August 2013 fell by a massive 20%," Young explained.

He noted that fixing interest rates at the wrong time or too early in the rate cutting cycle is one of the most common mistakes investors make.

{module How are you approaching your rates?}