RBA rate changes

When the Reserve Bank of Australia’s (RBA) increases the cash rate Virgin Money  may also consider increasing rates on variable home loans and saving and deposit accounts.

In making this decision we carefully consider our customers, our business and the broader economic environment.

If you're a customer with us and your loan rate increases, rest assured we will write to you to advise you of your new repayment amount and when it takes effect.

Frequently asked questions (FAQs)

  • Who is the RBA, what is the cash rate and what does it all mean?

    The RBA is Australia's central bank. The RBA is responsible for making monetary policy decisions, including setting the cash rate, announced on the first Tuesday of every month (except January).  

    Depending on a range of domestic and global factors, the cash rate may change often, or remain the same for an extended period. In this case, rates have not increased for almost 12 years.   

    The RBA increases the cash rate to manage the performance of the Australian economy. One key factor they consider is the inflation rate. When inflation is on the way up, it means the cost of living goes up too and things are more expensive.  

    The price of food, materials and fuel has surged in recent months along with the rising cost of new dwelling purchases by owner-occupiers.  

  • Why has the RBA lifted rates?

    The RBA increases the cash rate to manage the performance of the Australian economy.  
       
    Virgin Money acknowledges that any change to household budgets is difficult, and that is why we will have our Customer Assistance Team on hand to support our customers.

  • 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. 

  • 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.

  • 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. 

  • 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 Assist Teams as soon as you can once you know what your new repayments are.

    Further details on the Virgin Money's assistance for those experiencing financial difficulty, can be found here.

    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.

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