Navigating Interest Rate Changes

If the interest rate on your home loan has changed, here’s everything you need to help manage your situation.

Virgin Money interest rates update

Following the RBA’s cash rate decrease, we are reviewing what this means for our customers. You can check back here for updates.

 

Your financial future

Tools and tips for managing your home loan and budgeting like a pro.

Prepare yourself

5 ways to restructure your home loan and plan your budget around rate rises.

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Fixed, variable or split?

Find the best interest rate option for your situation.

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How to pay off your loan faster

4 ways to pay off your home loan quicker

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Top money saving tips

Learn 10 easy ways to cut costs every day.

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Offset or redraw?

Top home loan features to look for when rates rise.

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Setting a budget that sticks

5 financial habits to help you stick to your budget.

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Fixed rate ending soon? Know your options

 

With a fixed rate loan, your repayments stay the same for the duration of your fixed period. Once your fixed rate period ends, your loan will revert to a variable rate, and if interest rates have risen during this time, your repayments may increase.

As your fixed rate period nears its end, there are plenty of ways you can prepare yourself to manage the change in repayments.

Crunch the numbers 

In the event of interest rate changes, it’s good to be prepared so you can budget for your new home loan repayments.

Our calculators can help you work out what your new repayments will be, how much you can borrow, and the best home loan for you – whether it's fixed, variable, or split repayments.

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Max your savings

Want to speed up your savings goal? Say no more. Discover our best savings accounts for helping you grow your money faster.

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Financial Difficulty Assistance

If you think you need a hand with payments because you’re worried you can't pay what you owe, won't be able to manage your upcoming repayments, or are having difficulty meeting your repayments, let’s chat. 

For more information, please visit our Financial Difficulty Assistance page. 

 

FAQs

  • What causes changes to my variable home loan rate?

    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.

  • If my interest rate changes, how will I know what my new repayments will be?

    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.

  • Is there any change to my fixed rate 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.

  • When you approved my loan, how did you know I could afford it?

    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.

  • What should I do if I’m having difficulty meeting my home loan repayments?

    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.