Virgin Money's push into the mortgage market in Australia is pretty straightforward. The distribution model is a "direct" one, with loan applications made either over the internet (using systems developed by Virgin or through a contract centre, contracted out to Teletec).Macquarie Bank will fund the mortgages and provide some risk management services. Macquarie says the terms provided to Virgin are the same as those provided to other funders.While Macquarie owns a 10 per cent stake in Virgin Money in Australia, the bank says the terms are no better. Macquarie also owns stakes in other distributors of its mortgage product, including Australian Finance Group and Mortgage House.Virgin yesterday attempted to portray its pricing as cheap, with a comparison rate on its variable rate home loan of 6.61 per cent. On low doc loans the rates start at 7.25 per cent and slide down to the prime rate after four years.The pricing on Virgin's variable rate home loans is at the low end of what is a wide range of advertised interest rates in a crowded market. However, the discount of Virgin's mortgage is minimal at best.Banking monitor Infochoice lists dozens of cheaper home loan products, though features vary.Virgin Money is making a pitch about "flexible banking", though the pricing on the transaction card products offered as part of the product bundle (courtesy of Macquarie Bank) appears to be in line with the market and is not simple.There's a break fee of $1500, which is also in line with the market.