Velocity Frequent Flyers can earn double the rewards on home loans
Velocity Frequent Flyers can now earn twice as many rewards when applying for a new loan settlement.
Virgin Money entices new signups by doubling the number of Velocity Frequent Flyer Points new borrowers can earn on home loans. If you apply for Virgin Money's Reward Me Home Loans between 15 August 2016 and 31 October 2016 and settle by 28 February 2017, you'll earn 20,000 for every $100,000 borrowed at settlement. This bonus points offer is in addition to the standard offering of 1,000 Velocity points per month for each loan split, plus 30,000 bonus points every three years.
Say you had a mortgage of $400,000, you could earn up to 248,000 points over six years or 410,000 points over 10 years. According to the Velocity Frequent Flyer miles calculator, you could redeem up to a return flight in business class from Sydney to Los Angeles (with points to spare) or 8 return trips in business class from Sydney to Melbourne after six years. These are just a few examples of the rewards you can redeem and, of course, the longer your loan settlement, the more rewards you'll earn.
After launching the Reward Me Home Loans in May this year, this rewards option remains the only settlement to offer Velocity Points on the Australian market. Virgin Money's lowest variable rate is 3.69% p.a. for owner-occupiers after the lender passed on the Reserve Bank's full cash rate reduction earlier this month. If you're already paying off a home loan, earning Velocity Points (especially if they're bonus points) is an easy way to get extra value from your mortgage. As with any rewards scheme though, it's important to make sure the benefits outweigh the cost of the loan before you apply.