The Reserve Bank has cut the official cash rate to a low 1.50% and we’re heading in to spring buying season. Having passed on the full 25 basis point cut to its customers with a Reward Me owner-occupied variable home loan (and being one of the few financial institutions to pass on the full rate cut), Virgin Money is also set to rewards new loan applicants who apply for a Reward Me Home Loan by 28th October 2016 and settle by the end of February 2017 with double rewards points.
“Having a home loan doesn’t have to mean that holiday dreams go on hold,” said Virgin Money General Manager, Lending, Cards & Deposits, Johnny Lockwood.
Virgin Money, which is owned by Bank of Qld (BOQ), launched its Reward Me home Loans in May 2016 as the only home loans in the market to offer Velocity points on settlement, each month and on regular anniversaries.
How many Velocity points could you earn? According to Virgin Money, borrowers will earn 20,000 Velocity points per $100,000 borrowed, in addition to 1,000 points per month for each loan split plus 30,000 bonus points every 3 years. On a $400,000 mortgage split across fixed and variable, Virgin Money advises that this could equate to 410,000 bonus points over 10 years, all things remaining equal.
So what could 410,000 Velocity points equate to? Based on current redemption rates, CANSTAR has calculated that 410,000 Velocity points in your hand at time of writing could potentially get you:
- $2,250 in Myer or David Jones gift cards (cost – 405,000 Velocity Points)
- 52 one-way Sydney-Melbourne economy flights (cost – 405,600 Velocity Points + $21.11 in taxes per flight)
- 9 one-way Sydney-Los Angeles economy flights (cost – 403,200 Velocity Points + $137.67 in taxes per flight)
- 2 Sydney-London one-way flights in First Class Suite (cost – 304,088 Velocity Points + $482.95 in taxes per flight). Redeemed by transferring Velocity Points to Singapore Airlines Krisflyer and includes online discount.
Learn more about Home Loans
- How do I refinance my home loan?
- What is negative gearing?
- What is mortgage protection insurance? Why you probably don’t need it
Featured image by chameleonseye (istock)