Earning frequent flyer points for paying off your mortgage is an enticing perk. You have to make mortgage repayments, so why not get points to spend on flights and hotels on the side?
You can check out a range of home loan offers with frequent flyer points in the table below and read more on how these offers work.
But keep in mind that home loan comparison is really about getting a lower interest rate, avoiding fees and finding a loan that suits your specific needs. Don't settle for the wrong home loan just because of a points offer.
How do you earn flyer points with a mortgage?
The way you earn points differs by home loan product and lender. Here are a few examples currently on the market:
Virgin Money Reward Me home loans with Velocity Points. You earn points for every $100,000 you borrow plus "anniversary" points every three years.
Qudos Bank Qantas Points Home Loan. You can earn 150 points per $1,000 borrowed every year of the loan.
While you can't earn points on your ANZ Breakfree Package home loan you can avoid the account fee on the ANZ Frequent Flyer Platinum credit card, making it cheaper to earn points.
Be aware: Many of these offers come with package fees or require you to join a rewards program. While the points can be enough to pay for multiple international flights you should always look at how competitive the interest rates are.
Finder survey: Would Australians in different states package a home loan with a credit card?
Response
WA
VIC
SA
QLD
NSW
No
44.63%
41.91%
45.16%
40.09%
39.14%
Yes
33.06%
37.95%
30.11%
36.87%
39.45%
Unsure
22.31%
20.13%
24.73%
23.04%
21.41%
Source: Finder survey by Pure Profile of 1112 Australians, December 2023 Data for ACT, NT, TAS not shown due to insufficient sample size. Some other states may also be excluded for this reason.
Should I get a frequent flyer home loan?
Are you a frequent flyer? Seriously, it's an important question. If you travel a lot and are already a member of a rewards program you'll gain a lot more mileage out of a frequent flyer mortgage offer. If you don't, then consider how useful this benefit will really be.
Ask yourself the following:
Do I fly a lot? The key question is will you really use these points? Do an honest assessment. Rewards points aren't very useful if you accumulate them and never use them. Some programs will let your points expire if you haven't used your account in 18 months.
Am I likely to read into the fine print? Points work best when you spend the time working out and learning how to really get the most out of them (finder can help with that).
Am I borrowing enough money to make the points worthwhile? Many frequent flyer offers give you more points for borrowing a large amount of money. Calculate what you can actually earn and what those points will get you.
Have I truly compared all my options. At finder our advice is to always compare your home loan options and don't choose based on points alone. The real costs of the loan might outweigh the points benefits.
So what can I really get with my frequent flyer points?
To give you an idea of what your points could be worth, here's a table with some flights you can get with 200,000 Velocity Points.
No. of travellers
Destination
Class
Points required
2
Singapore to Sydney (return)
Premium Economy
178,800
2
Auckland to Sydney (return)
Business
142,000
1
Bali to Sydney (return)
Business
99,000
1
Hong Kong to Sydney (return)
Premium Economy
89,400
Note: The flight offers above are examples only based on the Velocity Points table. Some of these flights will incur additional costs such as taxes or airline surcharges. More flights are available with partner airlines.
Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification.
If you need access to a sum of cash and you've already built equity in your home, you can refinance your home loan to a higher amount and withdraw the difference in cash. Here's how it works.
Home loan cashback deals can help you refinance to a cheaper interest rate and get a lump sum cash payment. Compare the latest deals and check your eligibility today.
While we are unable to make a specific recommendation on this, you can make use of the information on our Qantas vs Virgin review page to decide which frequent flyer program offers better value for you based on your personal circumstances.
In making a decision, you may want to take into consideration factors such as airline partnerships, the flexibility of redeeming rewards, earning and using points, and the value of the points.
Government regulations banned lenders from charging exit fees for all variable rate home loans taken out after 1 July 2011. However, please note that lenders may still charge you legitimate administrative fees such as early termination fees. You need to check with your lender directly regarding the fees they charge.
Since you are thinking of switching to a different bank for your variable home loan, you may find this page on transferring home loans to another bank helpful. Feel free to utilize our comparison table displaying available lenders which you can consider for a home loan. When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.
You can also consider speaking with a mortgage broker for expert help on home loan.
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My wife and I want to refinance $1 million but also get some Frequent Flyer points. Which is best Qantas or Virgin?
Hi Barry,
Thanks for reaching out to Finder.
While we are unable to make a specific recommendation on this, you can make use of the information on our Qantas vs Virgin review page to decide which frequent flyer program offers better value for you based on your personal circumstances.
In making a decision, you may want to take into consideration factors such as airline partnerships, the flexibility of redeeming rewards, earning and using points, and the value of the points.
I hope this helps.
Cheers,
Charisse
I want to change my complete variable home loan from one bank to another . Will i pay exit fees.
Hi Lucille,
Thank you for reaching out to Finder!
Government regulations banned lenders from charging exit fees for all variable rate home loans taken out after 1 July 2011. However, please note that lenders may still charge you legitimate administrative fees such as early termination fees. You need to check with your lender directly regarding the fees they charge.
Since you are thinking of switching to a different bank for your variable home loan, you may find this page on transferring home loans to another bank helpful. Feel free to utilize our comparison table displaying available lenders which you can consider for a home loan. When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.
You can also consider speaking with a mortgage broker for expert help on home loan.
Cheers,
Charisse