Qantas Money has recently launched its home loan product offering that will reward borrowers with frequent flyer miles annually over the life of the loan.
Qantas Money partnered with Bendigo and Adelaide Bank in this venture — the latter will be providing funds for the home loans being offered under the Qantas Money brand.
What home loans does Qantas Money offer?
Qantas Money offers owner-occupier and investors loans with variable- and fixed-interest options. The brand carries a fixed-rate terms of up to five years.
Both owner-occupier and investor home loans can be settled on either principal-and-interest or interest-only terms.
Qantas Money claims that they are offering home loans at low rates — they are able to do so as they “benefit from a streamlined online process that reduces the time and cost of assessing and approving applications.”
What are the features of Qantas Money Home Loan?
Here are some of the features being offered for home loans under the Qantas Money brand:
- Ability to apply with as little as 10% deposit (subject to eligibilities)
- Offset accounts on fixed and variable loans
- Application options for self-employed individuals
- Ability to make additional repayments
- Access to redraw facilities
- Secure online banking
- 100,000 Qantas Points annually
How the Qantas Frequent Flyer Miles reward for home loan works?
One of the major features of Qantas Money Home Loans is the frequent flyer miles reward.
Eligible applicants earn 100,000 Qantas Points per property upon settlement. Refinancing multiple properties with Qantas allows applicants to earn 100,000 Qantas Points every year for every property.
According to Qantas, 100,000 points will be more than enough to pay for these trips:
- Return flights for one — Sydney to Honolulu; Sydney to Wellington; and Brisbane to Perth
- Return flights for couples — Sydney to Nadi; Sydney to Alice Springs; and Sydney to Cairns
- Return flights for four (family) — Sydney to Hobart; Sydney to Melbourne; and Brisbane to Hamilton Island.
What are the requirements to apply for a Qantas Money Home Loans?
To be eligible for any of the home loans under Qantas Money, borrowers must meet the following requirements:
- Applicants must be a Qantas Frequent Flyer Member. If the applicant has a co-applicant, both must have frequent flyer membership.
- The borrowers must be buying or refinancing an established property. Off-the-plan or homes under constructions are not yet eligible for the home loans.
- The property must be located in a capital city or a major regional centre.
- The loan value must be between $300,000 to $3m. For loans over $2m, a strict requirement of 25% deposit is implemented.
- Sole applicants must be currently employed, either through pay-as-you-go or self-employment.
- Applicants must provide at least one form of government ID that will serve as proof that they are a citizen or a permanent resident living in Australia.
What are the requirements for self-employed applicants?
Qantas Money will be offering home loans for self-employed applicants if they meet the following conditions:
- They must have a good credit history.
- They must be trading for a minimum of two years. They must have an ABN registered for at least two years.
- GST registered if gross revenue > $75,000
- They must be able to demonstrate income via tax returns of financial statements.
- They must provide a year’s worth of up-to-date tax returns or business financial statements.
How can borrowers apply for Qantas Money Home Loan?
Interested borrowers can apply for a Qantas Money Home Loan through the online portal. The application takes around 30 minutes provided that the borrower has all the information at hand.
Once completing the application, Qantas Money will be confirming the details online, verify personal details, run a credit check, and validate the borrowers’ income and expenses.
Approval will be delivered in a matter of minutes, depending on the circumstances of the borrower. Following the approval, loan documents will be auto generated and emailed to the borrower, which will need to be reviewed and signed.
What are the fees that come with the Qantas Money Home Loans?
Aside from interest-rate charges, here are the fees associated with Qantas Money Home Loans:
Establishment Fees – these fees are all deducted from the loan amount at settlement.
- Application Fee - $345
- Loan Processing Fee - $150
- Settlement Service Fee - $345.40
- Mortgage security registration/discharge fee – Varies
- Legal Fees - Varies
Other fees and charges- these fees may be incurred during the life of the loan
- Monthly Offset fee - $10
- Simple loan variation fee - $150
- Complex loan variation fee - $300
- Redraw Free - $50 per branch/manual withdrawal
- Repayment recalculation fee - $50
- Valuation and subsequent valuation fees – Vary
- Loan processing fee for additional lending - $150
- Arrears administration fee - $35
- Direct debit dishonour - $10
- Break costs – Varies
- Discharge administration fee - $325
Photo by Raf Jabri on Pexels.