Even a modest rise in interest rates would put more than 10,000 Queensland households at risk of defaulting on their home loans, according to the latest analysis by Digital Finance Analytics (DFA).

More than 144,000 homeowners in the state are currently in mortgage stress, and about one in five are close to default.

A mere 0.5% increase in interest rates would place more than 150,000 Queensland households in mortgage stress, and 10,191 would be close to defaulting on their loans or selling their homes, the DFA said.

Meanwhile, increasing rates by 2% would put more than 12,200 homeowners at risk of losing their homes.

The areas most at risk include Redbank, the Wide Bay-Burnett region, Darling Downs, and Mackay.

Across Australia, it is estimated that a quarter of households (more than 820,000) are currently in mortgage stress, a significant increase from 810,000 in June. Additionally, nearly 53,000 households across the country risk default in the next 12 months.

Martin North, principal of the DFA, said many households aren’t managing their expenses well due to stagnant incomes and the rising cost of living.

“Despite the record low cash rate, many households are only just managing to pay the bills, and rising power and childcare costs are making this more challenging,” North said. “We are on a knife edge, and even small lifts in rates will have a significant impact.”