While speculation continues about whether the banks will make out-of-cycle increases to their mortgage interest rates, lenders have been achieving the same result by other means. In recent months the market has seen more risk pricing based on loan to valuation levels, differential pricing and LVR limits for new-to-bank customers, adjustment to package discounts and loyalty discounts for loans that stay on the books long term.JP Morgan Banking analyst Scott Manning said there was still a likelihood that a big bank, most likely the Commonwealth, would lead the way with an out-of-cycle increase but in the meantime lenders have been improving their margins using risk pricing.National Australia Bank offers a package discount of 80 basis points (10 basis points more than its regular discount) on loan amounts of more than $250,000 and LVRs below 75 per cent.BankWest's Rate Cutter home loan starts with a 40 basis points discount off the standard variable rate and then increases by 10 basis points for the next four years. Loans that stay on the books longer are more profitable.Manning was speaking at the launch yesterday of the latest JP Morgan Fujitsu mortgage industry report. He said the mortgage market would continue with its current growth rate, in the low single digit range, in the year ahead.Manning said funding constraints were operating differently on the big four. Westpac and CBA, which have the biggest refinancing task, have matched system growth this year, while ANZ and National Australia Bank have not been so constrained.Manning said that trend would continue: "ANZ and NAB can put more of their new funding to growth and not refinancing. "ANZ is getting deposits from Asia that can go towards home lending here. NAB has had a big de-gearing in its institutional business and weaker demand for credit in the United Kingdom, giving it more scope to write home loans."Fujitsu Consulting executive director Martin North said mortgage margins were still under pressure but profitability had improved because loans were staying on the books longer.