Citibank had announced it would increase its home loan rate by 0.5 percentage points to 15 per cent.

Other home lenders were yet to follow suit, but a number were said to be keeping their options open.

Westpac was the firmest in rejecting any rise yet.

Interest rates on home loans from most of the major banks last fell to 14.5 per cent in the previous June, although some home lenders had undercut this rate to new borrowers in an attempt to increase market share.

Canberra, which in the past has often had higher than average home loan rates, was one of the beneficiaries of lower rates for new borrowers.

The St George Building Society, Canberra Building Society and Civic Advance Bank had competed for market share.

NAB lifted its benchmark lending indicator rate which applied to major corporate borrowers by 0.25 per cent to 15.75 per cent.

The bank's chief general manager Lloyd Smith said they would hold the housing loan rate at 14.5 per cent.

This was unless it became necessary to increase deposit rates to attract sufficient funds into the saving bank, he said.

Citibank's increase applied to its six monthly variable rate mortgage.

Borrowers who have been on their existing rate for less six months would continue on it.

See more https://trove.nla.gov.au/newspaper/article/102013053/11021438