Banks may be testing the waters for more risk-based pricing of home loans, and as one way of managing their margins more effectively without having to lift margins for all borrowers.In an interview with The Australian, ANZ's Australian chief executive, Phil Chronican, said major banks could end discounts on mortgage rates offered to customers to soften the impact of increased wholesale funding costs.Chronican told the newspaper banks were already beginning to make changes to mortgage packages, particularly reducing brokerage fees, to ease the current margin squeeze.In an interview Chronican said it was likely the local banks would restructure the "value-based pricing" of mortgages, which could include reducing the discounts on the average standard variable rates offered to some new and existing customers. "The banks offer discounts based on the valuation characteristics of a loan. In the future we may see that being used differently by banks as they fine tune their home loans," Chronican said. Chronican told the newspaper ANZ, and its rivals, were prepared to suffer the margin squeeze to maintain market share.Chronican said he was keen for ANZ to maintain its mortgage momentum but not to expand the loan book too rapidly."Our home loans have been growing at more than system. I don't want it to get too fast," Chronican said."I don't want a boom and bust lending cycle where you lend too much this year and you have to cut back later. It's important to lend to your core customers. You can always add more volume through the broker network but in the long run it's important to build your customer base."