Frequent Flyer Home Loans

By Matthew Kenworthy | Finance Tips

Frequent Flyer programs and other reward programs are extremely popular among consumers. Some common points-based programs include:

  • Flybuys
  • Velocity Frequent Flyer
  • Woolworths Everyday Rewards
  • Qantas Frequent Flyer program.

Many lenders offer the ability to earn frequent flyer points with your home loan. In some instances, these are upfront bonuses for taking out the home loan with them. In other cases the points benefits are ongoing and linked to your loan balances

It is common for lenders to provide a rewards credit card in a home loan package. These allow you to earn extra points on your everyday transactions.

Qantas Frequent Flyer Home Loan

One of our Lenders offers the ability to earn Qantas Frequent Flyers points as part of the home loan package. They offer this as part of their professional package, basic or line of credit home loan options.

They award Qantas Frequent Flyer points on the settlement of the loan, every month provided the balance is over $150,000 as well as additional bonus points on the 3rd and 5th year loan anniversaries.

They also provide a credit card with the ability to earn bonus points on your credit card spend.

Velocity Frequent Flyer Home Loans

Virgin Money also offer the ability to earn Velocity points via their Reward Me Home Loans.

They offer 10,000 points for every $100,000 drawn at settlement. For every home loan account you hold you can earn an 1,000 points every month. An anniversary bonus of 30,000 points is available every 3rd year. There are certain conditions attached to the anniversary bonus.

They also offer a credit card that allows you to earn extra points on your credit card spend. While there are a dditional fees applicable, the fees are discounted if held in conjunction with a home loan.

Property Investors

It is important to note that the interest rates on frequent flyer home loans may be slightly higher. Despite this, the loan product is still popular with many property investors. These investors see the points value as being more than the cost of deductible interest.

We recommend seeking tax advice from your Accountant when looking at your investment loans.

Are They Worth It?

Ultimately, there is no such thing as a free lunch. It may be good to earn frequent flyer points but it is important to know what the extra cost is when compared to a standard home loan.

When evaluating your home loan options, it is important to consider the dollar value of a point to you. This will assist in finding the most suitable home loan option for your situation.

About the Author

Matthew Kenworthy is a specialist in all aspects of Residential & Commercial Finance. He can assist all borrowers from First Home Buyers to Property Investors with Large Portfolios.