Virgin Money interest rates update
Virgin Money Australia regularly reviews rates on our savings and home loans following each Reserve Bank of Australia’s (RBA) decision to ensure they balance the needs of savers and borrowers and are competitive in the market.
Keep checking this page, as we will keep it up to date with the latest information.
For more information, view our media release here.
Your financial future
Tips and tools to help you plan and budget for interest rate increases.
5 ways to restructure your home loan and plan your budget around rate rises.
Fixed, variable or split?
Find the best interest rate option for your situation.
How to pay off your loan faster
4 ways to pay off your home loan quicker
Top money saving tips
Learn 10 easy ways to cut costs every day.
Fixed rate ending soon? Know your options
In the last two years, many Australians have enjoyed a level of certainty locking their home loan to a fixed rate at or below 2 per cent. In fact, at the start of 2022, nearly 40 per cent of Australian homeowners had a fixed rate – up from 20 per cent in early 2020.
If your fixed rate loan is getting closer towards its maturity date, there are plenty of ways you can prepare yourself to manage the change in repayments.
Crunch the numbers
In the event of interest rates rising, it’s good to be prepared so you can budget for your home loan.
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 out of fixed, variable, or split repayments.
Financial Difficulty Assistance
If you’re concerned about your financial position and feel you won’t be able to meet your financial obligations, we may be able to assist you. Get in touch with our Customer Assistance Team as soon as you can on 1 800 701 997.
For more information, please visit our Financial Difficulty Assistance page.
Q. Who is the RBA and why are interest rates rising?
The RBA is Australia's central bank and is responsible for making monetary policy decisions, including setting the cash rate. They can either raise, hold or cut the official cash rate target to manage the Australian economy.
The RBA describes the cash rate as the interest rate that banks pay to borrow funds from other banks in the money market overnight. It influences all other interest rates, including mortgage rates and banks can pass these costs down to their borrowers.
Changes to the cash rate are announced on the first Tuesday of every month (except in January).
Q. Will interest rates continue to rise?
There’s no guarantee whether interest rates will increase or decrease.
Although there is uncertainty around whether rates will continue to rise, the RBA sets the cash rate each month, so any changes in the rate will occur on the first Tuesday of every month (apart from January).
Q. Why does Virgin Money sometimes pass on a cash rate rise?
While the RBA’s monetary policy has been to keep the cash rate low, the central bank is now raising rates to combat rising inflation.
When the RBA lifts rates, the amount it costs Virgin Money to acquire the funds we lend to our customers also increases. This increased cost needs to be factored into the interest rates we charge and, sometimes, this will result in an increase to our interest rates for home and business lending customers.
Virgin Money regularly reviews interest rates to ensure they balance the needs of savers and borrowers and are competitive in the market.
Q. What were the recent changes to Virgin Money’s variable rates?
Month Rate increase Effective date June 2023 0.25% p.a 16 June 2023 May 2023 0.25% p.a 9 May 2023 March 2023 0.25% p.a 14 March 2023 February 2023 0.25% p.a 10 February 2023 December 2022 0.25% p.a 9 December 2022 November 2022 0.25% p.a 11 November 2022 October 2022 0.25% p.a 14 October 2022 September 2022 0.25% p.a 16 September 2022
Q. How much extra will I need to pay on my home loan? And when? How do I find this out?
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.
Q. 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.
Q. 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.
Q. What if I can’t afford any increases to my loan?
We’re here to help. If you are having trouble making loan repayments, the best thing you can do is get in touch with our Customer Assistance Team as soon as you can once you know what your new repayments are.
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.