Demand for fixed-rate home loans increased during July in response to banks increasing interest rates, Mortgage Choice says. According to the latest data, fixed-rate home loans accounted for 18.46% of all loans written across Australia in July, up from 17.58% in June.

Mortgage Choice chief executive John Flavell said this shift in loan type preference could be in response to interest rate changes made by banks following APRA’s crackdown on investor lending.

“The price increases come as many of Australia’s lenders continue to make some significant changes to their lending practices in a bid to curb investment lending growth,” he said.