CBA reincarnates sign-up sweeteners – with a twist

Australia’s biggest bank, CBA, has rolled out a new home loan perk, offering up to 300,000 Qantas Frequent Flyer points for new customers taking out its lowest variable rate home loan.

Available on the bank’s Digi Home Loan with a lowest advertised variable rate of 5.34% for owner-occupiers with a 40% deposit (comparison rate of 5.47%*), the number of points on offer depends on the loan size being taken out.

CBA Digi Home Loan: Qantas points on offer for new customers

• 100k for loans between $300k-$499k

• 200k for loans between $500k-$999k

• 300k for loans of $1 million and over

The catch? The points are only available on the bank’s digital-only mortgage, which is not available via a broker.
The launch of the new sign-up incentive comes on the back of an increase in the number of borrowers refinancing, spurred on by this year’s cash rate cuts, which has seen the value of refinancing hit a new record high.

The latest Australian Bureau of Statistics (ABS) Lending Indicator data shows a total of $61.9 billion in mortgages switched to a different lender in the June 2025 quarter in seasonally-adjusted terms, surpassing the former peak in March 2023 when the number of cashback incentives was at a record high.

How common are frequent flyer home loans?

Canstar Research shows there are currently four lenders offering Qantas Frequent Flyer points with a home loan (see full details of offers below):

• CBA

• Qantas Money

• Qudos Bank

• La Trobe Financial

Do lenders still offer cashback?

Home loan cashback deals peaked in 2023, when over 30 lenders offered a cashback deal as banks fought tooth and nail to steal refinancers from their competitors.

CBA was the first of the big banks to turn its back on these cash incentives, pulling them from the market on 31 May 2023. NAB and Westpac followed shortly after, along with dozens of other lenders, stopping the refinancing boom in its tracks.

However, cashback deals are by no means dead and buried. Analysis from Canstar Research shows 13 lenders currently offer a cash incentive on mortgages, including big four bank, ANZ (see full table below).

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Are frequent flyer home loans worth it?

Sign-up incentives can often offer refinancers a financial sugar hit, however, how long a borrower ends up ahead, compared to if they had gone with a lower-rate alternative, will depend on the value of the perk, what interest rate they’re paying, the fees, the loan term and the loan size.

Canstar Research put this to the test, sizing up CBA’s Digi Home Loan at 5.34%, versus one of the lowest rate loans in the market, at an estimated variable rate of 5.17% (based on the average of five of the lowest comparison rates in the Canstar database).

A borrower with a $600,000 mortgage, 40% deposit and 25 years remaining who refinances to CBA’s lowest rate, instead of opting for one of the most competitive rate loans in the market, could potentially end up ahead in the first two years, based on interest and fees paid, minus the value of the points redeemed. This assumes they redeem their points for Sydney-to-Melbourne Qantas flights.

After the third year, however, the total cost of the loan would be more, and after five years, the total cost could be as much as $3,125 extra.

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Source: www.canstar.com.au. Calculations are estimates based on an owner-occupier paying principal and interest with 25 years remaining on their mortgage, refinancing to CBA’s Digi Home Loan vs one of the lowest variable rate loans on the market. Cost includes the switch fees and ongoing fees minus the value of the perk offered. Does not include optional costs such as an optional offset account, or CBA’s Yello cashback offer. The low rate option is based on the average of 5 of the lowest variable comparison rates on the Canstar database, excluding specials and eco loans. Assumes the cash rate changes in line with CBA’s current cash rate forecast and that lenders only change variable rates in line with the RBA. The value of Qantas points is based on redeeming Syd – Mel (Tullamarine) Qantas economy flights, booking 6 months ahead based on the cheapest fare available, or the lowest point option (i.e. Classic Award flights).

Note: the calculations are estimates for illustrative purposes only and will vary depending on each borrower’s personal circumstances and how and when the points are redeemed. International flights may have a higher value, depending on the cost of the fares at the time.

Canstar’s Data Insights Director, Sally Tindall says, “Refinancing just hit a new record high and so it’s no surprise Australia’s biggest bank is looking for new ways to capitalise on this resurgence.”

“CBA might have moved away from handing out cold hard cash, but it’s still hungry for new customers. This time, it’s dangling frequent flyer points to reel borrowers in.

“Interestingly, the lender is only offering the points on its digi-only home loan, in a move to push its direct-to-bank home loan offering.

“If this points play pays off for CBA, we could see more lenders coming up with fresh new ways to stand out in a fiercely competitive refinancing market.

“While hundreds of thousands of frequent flyer points can potentially fly you around the world, borrowers should think practically when refinancing their home loan because a flashy sign-up bonus can lose its shine in the longer term if the loan doesn’t suit your needs.

“At 5.34 per cent, the lowest rate on CBA’s Digi Home Loan is actually relatively competitive, however, if you’re someone whose primary objective is to pay less interest on your mortgage, know there’s more than 40 lenders offering sharper variable rates to owner-occupiers.

“Before you jump at a big points haul, do the maths. Make sure the value of the sign-up bonus isn’t wiped out by higher rates and fees before you’re next likely to refinance.

“However, if you haven’t refinanced or renegotiated your mortgage in a number of years, know that doing something is probably going to be better than doing absolutely nothing. Switching to a more competitively-priced loan has the potential to bring real relief into your budget, with or without a sign-up perk.”

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Source: www.canstar.com.au. Notes: La Trobe Financial’s lowest advertised variable rate is for emergency service workers only. Lowest rates are for owner-occupiers paying principal and interest. LVR and other requirements apply.

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Source: Canstar.com.au. Notes: Lowest rates are for owner-occupiers paying principal and interest. LVR and other requirements apply.

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Comparison rate note

A comparison rate is a rate that all lenders by law must display next to their advertised interest rates. It’s a rate which takes into account some of the fees and charges of a home loan to give you a more accurate representation of a loan’s interest rate once the costs are taken into account. The comparison rate for all home loans and loans secured against real property are based on secured credit of $150,000 and a term of 25 years. *This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.