Virgin Money announces interest rate changes for borrowers and savers

Following the Reserve Bank of Australia’s (RBA) decision to increase the cash rate by 0.50%, Virgin Money has today announced a range of interest rate changes for home loan and deposit customers.

From 9 July, Virgin Money will lift variable home loan interest rates by 0.50% per annum (p.a.) for new and existing customers.   

To support savings customers, Virgin Money will also lift rates on its popular online savings accounts, the Boost Saver Account and the Grow Saver Account from 15 July, with Lock Saver rates that will help customers smash their savings goals sooner.    

Virgin Money CEO, Greg Boyle said: "We don’t make these decisions lightly and are acutely conscious of how these changes affect household budgets differently.  

“We are keen to ensure we balance the needs of both borrowers and savers and are pleased to offer a 0.80% p.a. rate increase for our Boost Saver Account customers, along with a growing suite of loyalty options that all our customers benefit from every day."

Support available for customers

To help customers manage rate rises, Virgin Money has a range of online resources available including a Mortgage Repayment Calculator. For customers experiencing financial hardship, we encourage them to contact our dedicated support teams.

For existing home lending customers on a variable rate, Virgin Money will inform customers of their new monthly repayment amount. For further assistance or support customers should reach out to our Virgin Money team on 13 81 51.

Tips to get the most out of your home loan rate:

1.       Reduce interest with an offset account: An offset account is a stand-alone savings account that’s linked to a home loan, with the same lender. Make regular or one-off deposits to an offset account and withdraw from it as needed, so it operates like a normal transactional savings account. It even comes with a debit card to withdraw cash from an ATM.

2.       Get the flexibility of a redraw facility: A redraw facility isn’t a separate account from a home loan. Instead, it’s a feature of a variable rate mortgage that enables making additional repayments into a home loan, above the minimum payment amount. This reduces the balance owing on a home loan, which means paying less interest and can paying the loan off faster.

Understanding the practical differences between these options can help customers make the best decision for their circumstances. Find out more here

Legal notes:

Interest rates expected at 15 July are subject to change’. Terms, conditions, fees and charges apply. This is general information only and you should consider if these products are appropriate for you.