Qantas or Velocity points with your mortgage? Here’s what to know

If you know two things about me, they're probably my love for travel and my interest in the home loan market – this is what I do, after all. These two passions converge when frequent flyer rewards are offered on mortgages. 

But are they actually worth it, and which rewards program offers better value: Qantas Frequent Flyer or Virgin's Velocity Frequent Flyer?

Keep reading as I break down the real value behind frequent flyer home loans and explore other mortgage perks that could help you take off sooner.

What are frequent flyer home loans?

If you're an avid traveller like me and you're thinking about taking out a new home loan or refinancing, your eye might have been caught by one of the few mortgage products linked to frequent flyer programs.

These home loans typically offer Qantas or Virgin points – either as a sign-up bonus, an annual reward, in return for spending on a linked credit card, or a combination of these.

They're often targeted at borrowers who travel regularly and are looking to maximise value beyond interest rates alone.

Quick tip: If you're not a regular flyer, a lower-rate mortgage or one with a cashback offer may offer more value than a rewards mortgage.

Which banks offer frequent flyer points with home loans?

The lender that springs to mind for offering frequent flyer points alongside a home loan is – surprise, surprise – Qantas Money. Historically, Virgin Money also provided rewards-point-powered home loans but applications are closed to new borrowers at the time of writing.

Qudos Bank and La Trobe Financial also currently offer Qantas Points on select home loan products, though availability and conditions vary.

Some lenders, like Westpac, have previously run sign-up bonus promotions that included frequent flyer points, although these offers are no longer active.

Fee-free rewards credit cards linked to home loans

Meanwhile, a number of banks offer credit card-linked rewards programs that are bundled with home loan packages. For example, CommBank's Yello includes a fee-free rewards credit card capable of earning points redeemable for flights and other travel experiences. Other lenders offering such packaged home loan deals include:

Lender	Fee-free rewards card**	Points options	In-house points redeemable at***
CommBank	Smart Awards	CommBank Awards Points, Qantas Points	Flight Centre
Westpac	Altitude Rewards	Altitude Points, Qantas Points, Velocity Points	Anywhere Mastercard is accepted (via Pay with Points)
Macquarie Bank	Macquarie Black or Platinum	Macquarie Reward Points	Flight Centre, Webjet, Airbnb, Luxury Escapes, & more

**Offered on select home loan products as of 15 May 2025.

***Travel-related redemptions considered only; outlets listed are examples and not necessarily exhaustive.

A word of caution: While these credit cards can help you earn extra rewards, they also come with risk. If you’re not careful, it’s easy to let balances build up – and interest charges can quickly wipe out any points benefits. Before applying, consider whether a credit card suits your financial habits and whether you’re likely to pay it off in full each month.

How can mortgage borrowers earn frequent flyer rewards?

How frequent flyer rewards are earned in each of the above examples differ.

For instance, Qantas Money currently provides a home loan holder with 100,000 points each year for up to 30 years*.

Qudos Bank hands over 150 Qantas points each year for every $1,000 outstanding on a loan balance, credited monthly*, while La Trobe Financial offers borrowers 50,000 Qantas points on the settlement on an eligible mortgage and 15,000 bonus Qantas points per year for the first five years*.

CommBank's home loan rewards program, however, offers a separate, fee-free Smart Awards credit card that can offer up to 0.6 Qantas points for every dollar spent*. Alternatively, a borrower can earn up to 1.5 Award points (CommBank's own loyalty system) per dollar spent on the linked credit card, and these points can be redeemed at Flight Centre*. Unlike Qantas Money, these credit card-linked options don't award points specifically based on your mortgage, rather on everyday spending.

*Information correct as of 22 May 2025 and subject to change at any given time.

Do frequent flyer mortgages offer good value?

Whether a mortgage that offers airline loyalty points represents good value will depend on the product in question, the home loan market at the time, and your individual needs.

Importantly, mortgages that come with bonus Qantas or Virgin Velocity points don't tend to advertise overly competitive rates, meaning they typically cost more to hold.

An avid traveller might find they save significantly by collecting and redeeming Qantas or Virgin Velocity points, even if it means they're not getting the best home loan deal.

On the other hand, someone who travels infrequently or won't use points effectively might be better off getting a lower rate home loan – they might even choose to put the savings towards future holidays.

Let's say your frequent flyer mortgage charges 0.3% more than a comparable basic loan (6% p.a. vs 6.3% p.a.).

Over five years on a $500,000 loan, you could pay around $5,800 more in interest – would the added value of points offset that?

As always, it's important to check a home loan's comparison rate, as well as its interest rate. A comparison rate that's notably higher than the interest rate could be a sign of exorbitant fees.

Alternatives to frequent flyer home loans: Cashback or lower rates?

If you're looking for a home loan product boasting extra incentives, the promise of bonus frequent flyer points might catch your eye.

The same could be said for cashback offers, tech inclusions, or extremely competitive interest rates.

If any of those spark your fancy, Your Mortgage has compiled a guide on the lenders currently offering cashback incentives, or you might want to look at some of the lowest rates on the market right now:

Important Information and Comparison Rate Warning

For those seeking state-of-the-art tech features, such as digital property valuations, multiple offset accounts, and app-based mortgage management, the likes of Up Bank, ubank, and Tiimely Home might be worth considering.

Qantas vs Velocity: Choosing an airline rewards mortgage

Australian travellers looking to make the most of their mortgage through airline rewards will likely find themselves weighing up Qantas Frequent Flyer against Virgin's Velocity Frequent Flyer program.

Both programs let members earn points through everyday spending, including travel, groceries, and by signing up for partner organisations' financial products – like credit cards, home loans, or insurance. These points can be redeemed for goods, hotels, car hire, flights, and upgrades.

Pro tip: Flights and upgrades generally offer the best value for points redemption.

It's worth noting that Qantas and Velocity points can typically be redeemed for flights operated by Qantas or Virgin respectively and those operated by either airline's partners. Virgin has a number of airline partners, including Qatar Airways, while Qantas is part of the oneworld alliance, which includes the likes of Emirates, American Airlines, Qatar Airways and British Airways.

Which program will offer the most value for you will depend on how you plan to earn and use your rewards points. Here's how the two programs compare on other key considerations:

All information contained is correct at the time of publication and can change at any given time.

How common are Qantas and Velocity points home loan deals?

Let's start by comparing how common it is to find home loans that offer Qantas or Velocity points:

	Qantas	Velocity
Availability via home loans	Somewhat common	Rare at the time of writing

Supermarket loyalty programs exchange

Beyond your home loan though, if you're locked into one program over another, you'll be interested in knowing other ways to earn points. Both airline rewards programs have paired up with Australia's two major supermarket loyalty programs:

	Qantas	Velocity
Supermarket loyalty program partner	Everyday Rewards	Flybuys
Supermarket loyalty points collectable at	Woolworths, Big W, BWS, Petstock, Ampol, MILKRUN, & more	Coles, Bunnings, Kmart, Target, Liquorland, Officeworks, Reddy Express, & more
Supermarket loyalty points earned per $1 spent	At least one	At least one
How many frequent flyer points are redeemable for supermarket loyalty points?	2,000 Everyday Rewards points = 1,000 Qantas points	1,000 Flybuys points = 500 Velocity points
Can you earn airline status points from shopping?	No	Yes, one Velocity Status Credit on every $100 spent at Coles, Coles online, Liquorland and First Choice Liquor Market
Autotransfer available?	Yes	Yes

How many points does it take to fly Sydney to London (one-way, economy)?

	Qantas	Velocity
Cost of Sydney–London one-way flight (economy)	From 55,200 points + taxes, fees, and carrier charges	From 80,000 Velocity points + taxes, fees, and carrier charges

How many points are needed to fly Sydney to Melbourne (return, economy)?

	Qantas	Velocity
Cost of Sydney–Melbourne return flights (economy)	From 12,800 points + taxes, fees, and carrier charges	From 11,800 points + taxes, fees, and carrier charges

How many points can purchase a $100 gift card?

Perhaps the simplest way to vouch for the cash value of Qantas points vs Velocity points is by deducing how many are needed to buy a $100 gift card.

Both programs allow points to be exchanged for a variety of gift cards, in this case I'm comparing the cost of a physical Coles Group & Myer gift card (available via Velocity Frequent Flyer) and a digital Everyday WISH gift card (available via Qantas Frequent Flyer and redeemable at Woolworths and partners).

	Qantas	Velocity
Points needed to buy a $100 gift card	21,810 points	21,387 points

FAQs on frequent flyer rewards home loans

How many frequent flyer points can I earn on my mortgage?

The number of points you can earn on your home loan will depend on the lender, the structure of the offer, and the size and type of your home loan.

Here are a few examples available as of 22 May, 2025:

• Qantas Money: 100,000 Qantas Points per year for the life of your loan (up to 30 years).

• Qudos Bank: 150 Qantas Points per year for every $1,000 of your loan balance, credited monthly.

• La Trobe Financial: 50,000 Qantas Points at settlement, plus 15,000 bonus points per year for five years on eligible loans.

In contrast, fee-free rewards credit cards offered alongside home loans – such as those from CommBank or Westpac – don't award points based on your mortgage directly, but you can earn points on everyday spending by using the rewards card. Though, there are added risks associated with credit card usage. Take the time to consider your personal financial situation before applying for any financial product. 

Do these home loans come with higher interest rates?

Generally, frequent flyer mortgage products offer higher interest rates than no-frills home loans. That's why it's important to weigh up whether the rewards points offer enough value to offset the extra cost.

Frequent flyers who regularly redeem points may find the rewards worthwhile. But homeowners who rarely fly – or who fly routes not easily booked with points – might be better off choosing a lower-rate loan and using the savings to fund future travel.

Can I use a frequent flyer rewards credit card to pay my mortgage?

Most lenders do not allow mortgage repayments to be made via credit card, perhaps since that's essentially using one form of debt to repay another.

However, you can still use a linked rewards credit card for everyday purchases like groceries, bills, and travel – and earn frequent flyer points that way. Just remember: If you don't pay off your credit card in full each month, interest charges could cancel out the benefit of any points you earn.

_{Image by Sam Carter on Unsplash}