Australia's second biggest home loan lender Westpac Banking Corp says its mortgage interest rates are constantly under review, as one of its rivals flagged a rise in mortgage rates.
"We never forecast future interest rate rises or decreases," Westpac spokeswoman Jane Counsel said on Friday.
"Interest rates are something that are constantly under review and we take a number of factors into consideration, one of them being the cost of funds."
Commonwealth Bank of Australia said on Friday it was raising interest rates on its home and business loans by 10 basis points to offset higher funding costs.
The rate on its standard variable loans will rise to 5.74 per cent, from 5.64 per cent, from Monday June 15.
Interest rates on a range of its fixed home loans and its Residentially Secured Better Business Loan will also rise by 10 basis points from Monday.
The increase in fixed rates does not affect existing customers.
Westpac has 26 per cent of Australia's home loan market behind CBA, according to Australian Prudential Regulation Authority data.
AAP