Kworld trend / Qantas money home loans, Qantas Money recently launched its home loan product offering that will reward borrowers with frequent flyer miles annually over the life of the loan.
The Qantas Money has partnered with Bendigo and Adelaide Bank on this project – the latter will provide funds for home loans offered under the Qantas Money brand.
Qantas Home Loans
Qantas has launched a white-label mortgage offer through its Qantas Money service, giving borrowers up to 100,000 Qantas points annually. And Qantas Money, the financial services offered to Qantas frequent flyer program members, has offered its first branded home loan offer.
While Qantas Money previously offered points for loans from partner lenders, it launched its first white-label mortgage pool on Monday (February 6).
Qantas Home Finance offers Qantas Frequent Flyer Program members (or those who wish to sign up to become one) home loans from $300,000 to $3 million.
Funded by Bendigo and Adelaide Bank, the loans are available to both PAYG and self-employed Australians (or permanent residents) purchasing a home or investment property in a major capital or regional centre.
The mortgage covers only established properties (not off-plan or under construction).
Upon settlement, borrowers can earn 100,000 Qantas Points and an annual bonus of 100,000 Qantas Points (which accumulates three months after the Qantas Home Loan settlement anniversary for up to 30 years, provided the loan is not in arrears).
Qantas Cash Home Loan is supported by Fintech Tic: Toc Enterprise funded by Bendigo and is therefore currently only available directly. Fintech technology is used to confirm borrower details in real time and “get an answer in minutes”.
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According to Qantas Money, by offering “a streamlined online process for evaluating your application once it’s completed,” the time and cost of origination and valuation are cheaper and thus “reduces the overall cost of securing a home loan and allows Qantas Money to offer competitive rates with low fees.”
Rates currently start at 4.67 percent (compared to 4.73 percent) for a variable loan with principal and interest paid off. Application fees, loan processing fees, and settlement service fees also apply.
Referring to the launch of Qantas Money Home Loans, Bendigo and Bank of Adelaide Senior Client Richard Fennell said: “Qantas is a popular Australian company.
“We are proud of this association and the opportunity to work with them in bringing this product to market.”
However, A Bendigo and Adelaide Bank spokesperson added: “Qantas, Bendigo and Adelaide Bank are both unique Australian businesses with a long history.
“From time to time, Bank of Bendigo and Adelaide forms partnerships with companies that share our values and are attracted to our products and services.”
Anthony Baum, Founder and CEO of Tic:Toc, states: “Our partnership with Qantas Loyalty demonstrates how customer-focused brands can now leverage technology and balance sheet partners to enter traditionally complex parts of the financial services industry, creating additional value for their customers. “
Qantas launches a home loan with variable interest rates
Australia’s leading airline has launched ‘Qantas Financial Home Loan’, a variable rate product for both owners and investors.
On principal and interest payments to owners occupants, the rate is currently 4.67% per annum compared to a comparable rate of 4.73% per annum*.
For investors, the rate is 5.02% per annum (5.08% yoy*).
The minimum loan amount is $300,000 while the maximum is $3 million – For loans less than $2 million a minimum deposit of 10% is required, while for loans above this amount a minimum deposit of 25% applies.
The credit provider is Bendigo & Adelaide Bank, which also guarantees Tic: Toc and Up Bank loans.
The airline turned credit provider also offers 100,000 Qantas Points each year with the product – new customers have to sign up for the frequent flyer program in order to apply for a Qantas Money home loan.
Moreover, Qantas already offers frequent flyer rewards credit cards through its American Express and Mastercard platforms – the latter being insured by Citi.
However, Qantas home insurance products are guaranteed by Auto & General, the parent company of Budget.
Qantas Cash Home Loan Features
- Offset Accounts: 100% offset accounts offered for $10 per month, which includes a Visa debit card and BPAY facility. If the offset is added after the home loan is settled, it attracts a $150 fee — the same if they remove the offset.
- Unlimited additional repayments on variable rate home loans, and $20,000 per year on fixed rate home loans.
- Free repaint.
- However, Frequent Flyer Points: 100,000 points upon settlement, plus 100,000 each year for the life of the loan. Applies to one owner occupying the property and a maximum of five investment properties at a time.
What are the mortgages offered by Qantas Money?
Qantas Money offers loans to owners, occupants and investors with variable and fixed interest options. The brand carries fixed terms of up to five years.
Moreover, Home loans can be settled from both owner-occupier and investor on principal and interest or interest only terms.
However, Qantas Money claims to offer home equity loans at low rates – it is able to do so because it “benefit from a streamlined online process that reduces the time and cost of evaluating and approving applications.”
What are the features of Qantas Home Cash Loan?
Here are some of the features that are offered for home loans under the Qantas Money brand:
- Ability to apply with a deposit not exceeding 10% (subject to eligibility)
- Offset accounts on fixed and variable loans
- Application options for self-employed individuals
- The ability to pay additional installments
- Access to redrawing facilities
- Online banking insurance
- 100,000 Qantas Points per year
How does Qantas Frequent Flyer Miles work on a Home Loan?
One of the main advantages of Qantas Home Finance is the bonus of frequent flyer miles.
Moreover, Qualified applicants will earn 100,000 Qantas Points per hotel upon settlement. Refinancing multiple properties with Qantas allows applicants to earn 100,000 Qantas points per year on each property.
According to Qantas, 100,000 points will be more than enough to pay for these flights:
- One-person return flight – Sydney to Honolulu; Sydney to Wellington; and Brisbane to Perth
- return trips for couples – sydney to nadi; Sydney to Alice Springs; And Sydney to Cairns
- However, Return flights for four (family) – Sydney to Hobart; Sydney to Melbourne; and Brisbane to Hamilton Island.
What are the requirements to apply for Qantas cash home loans?
To be eligible for any of the housing loans under Qantas Money, borrowers must meet the following requirements:
- Applicants must be members of the Qantas frequent flyer programme. If the applicant has a co-application, both must have frequent flyer memberships.
- Borrowers must purchase or refinance an existing property. Off-plan or under construction homes are not yet eligible for housing loans.
- The property must be located in a major metropolitan or regional center.
- Moreover, The loan amount should be between $300,000 and $3 million. For loans over $2 million, a strict requirement of a 25% deposit applies.
- Individual applicants must be currently employed, either through pay-as-you-go or self-employment.
- However, Applicants must provide at least one form of government identification which will serve as proof that they are citizens or permanent residents living in Australia.
What are the requirements for self-employed applicants?
Qantas Money will provide mortgage loans to self-employed applicants if they meet the following conditions:
- They must have a good credit history.
- They must have been trading for a minimum of two years. They must have had a registered ABN for at least two years.
- GST registered if the total revenue is greater than $75,000
- However, They must be able to prove income through tax returns for financial statements.
- They must provide a year’s worth of updated tax returns or business financial statements.
How can borrowers apply for a Qantas Home Cash Loan?
Interested borrowers can apply for a Qantas cash home loan via the online portal. Moreover, The application takes about 30 minutes, provided that the borrower has all the information on hand.
Once the application is completed, Qantas Money will confirm the details online, verify personal details, perform a credit check, and check the borrowers’ income and expenses.
However, Approval will be delivered within minutes, depending on the borrower’s circumstances. After approval, loan documents will be automatically generated and emailed to the borrower, which you will need to review and sign.
What Fees Come With Qantas Money Home Loans?
Apart from the interest rate fee, the following are the fees associated with Qantas Financial Home Loans:
Initiation Fee – All these fees are deducted from the loan amount upon settlement.
- Application fee – $345
- Loan processing fee – $150
- Settlement Service Fee – $345.40
- Mortgage registration/discharge fees – vary
- Legal fees – vary
Fees and other costs – These fees may be incurred during the life of the loan
- Monthly offset fee – $10
- Simple Loan Change Fee – $150
- Complex loan changeover fee – $300
- Free Re-Withdrawals – $50 per branch/manual withdrawal
- Reimbursement recalculation fee – $50
- Appraisal and subsequent appraisal fees – vary
- Loan processing fee for additional lending – $150
- Administrative fee for arrears – $35
- Direct Debit Shame – $10
exit fee
- Breaking costs – varies
- Administration fee at checkout – $325
