The Reserve Bank of Australia (RBA), the nation’s central bank, sets the cash rate to help manage the Australian economy. This rate determines the interest banks pay to borrow funds overnight and directly impacts mortgage rates. The RBA reviews the cash rate eight times a year, deciding whether to raise, hold, or cut the rate. Lenders may pass these changes on to their borrowers.

Lenders may also adjust home loan rates independent of the RBA. These changes are often influenced by factors such as shifts in funding costs, market conditions, or the need to balance the interests of savers and borrowers while staying competitive.

For existing home lending customers on a variable rate, Virgin Money will send you a letter to inform you of the new monthly repayment amount, and when this will take effect.

You can use Virgin Money’s Loan Repayment Calculator to calculate how your repayments may change.

For existing home loan customers currently on a fixed rate, your loan repayment amount will not change for the duration of the period you have chosen to fix the rate of your loan.

For our existing home loan customers currently on a fixed rate, your loan repayment amount will not change for the duration of the period you have chosen to fix the rate of your loan.

Virgin Money applies a number of ‘tests’ when assessing customers’ ability to repay a loan.  

These ‘tests’ include consideration of potential movements in interest rates over the life of the loan and evaluate a customer’s living expenses against their income.

Along with requirements by Australia’s banking regulators, these ‘tests’ are put in place to assess if a customer can still meet repayments in a higher interest rate environment before approving a loan.

We’re here to help. If you’re having trouble making loan repayments, the best thing you can do is get in touch with our Customer Assistance Team as soon as possible.

You can find further details on our Financial Difficulty Assistance page. 

The Australian Banking Association’s Financial Assistance Hub is also an excellent resource to help you understand the options that may be available if you are in financial difficulty.