This week, Virgin Money increased its rates for owner-occupier variable principal and interest (P&I) home loans with loan-to-value (LVR) ratios below 80 per cent.
For home loans under $500,000, the rate has been increased by 5 basis points from 3.68 per cent p.a. to 3.73 per cent p.a.
The comparison rate for home loans below $500,000, meanwhile, has been raised to 3.87 per cent p.a.
The variable and comparison rates for loans between $500,000 and $749,999 remain unchanged at 3.68 per cent and 4.23 per cent, respectively.
Similarly, the variable and comparison rates for loans of $750,000 and above have not been changed, remaining at 3.64 per cent and 4.23 per cent, respectively.
The new rates came into effect on Monday, 27 August.
Over the last several months, a number of non-major lenders — including Macquarie Bank, AMP, ING, Bank of Queensland, Heritage Bank and Auswide Bank — announced increases to their home loan interest rates, with most attributing their decision to a rise wholesale funding costs.
Conversely, ANZ Bank earlier this month bucked the trend, announcing that it was cutting its owner-occupier P&I rate on its basic home loan by 34 basis points to 3.65 per cent, while reducing some fixed mortgage rates by up to 24 basis points. It also slashed its rates for investor P&I loans by up to 13 basis points.
Commonwealth Bank similarly cut some of its fixed rates by 10 basis points.
However, economists believe the major banks will follow the lead of non-majors and increase rates out of cycle, according to a recent survey by financial services comparison site finder.com.au.