first_imgDemand for fixed rate home loans is on the rise, according to Mortgage Choice. Picture: iStock.QUEENSLANDERS are driving a surge in demand for fixed rate home loans, amid the threat of further interest rate rises.Fixed rate home loans accounted for nearly 30 per cent of all home loans written in the state during the month of April, according to Mortgage Choice.Nationally, 26.5 per cent of all loans written last month were fixed — the highest number in 2.5 years.Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:51Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:51 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p360p360p270p270pAutoA, selectedAudio Trackdefault, selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenHousehold Debt00:51Mortgage Choice chief executive John Flavell said he wasn’t surprised to see a greater proportion of borrowers opting for the security of a fixed-rate loan.“Over the last couple of weeks, we have seen many of Australia’s lenders increase the interest rates across their suite of home loan products,” he said.More from news01:21Buyer demand explodes in Townsville’s 2019 flood-affected suburbs12 Sep 202001:21‘Giant surge’ in new home sales lifts Townsville property market10 Sep 2020“Some lenders have increased their variable rates by as much as over 20 basis points.”Mr Flavell said he expected to see further increases in fixed rate demand as interest rates continued to rise over the coming weeks and months.“With Australia’s lenders making changes outside the Reserve Bank’s monthly Board meetings, we may see more borrowers choosing to fix their mortgage in a bid to avoid further rate hikes and ultimately give themselves a level of certainty and stability around their mortgage repayments,” he said.But variable home loan rates are still the most popular product among borrowers in Australia.In particular, ongoing discount home loans are the most sought-after — accounting for 43 per cent of all loans written.“As we have seen over the past several weeks, the lending space is rapidly changing, but it is important to remember that home loan rates are still low by historical standards,” Mr Flavell said.last_img