You might think your home loan is just a drain on your bank accounts but if used wisely a home loan can also have its perks – such as free travel.
While home loan repayments are a burdensome cost for many, you are building up your home equity as you pay off your mortgage — so while homeownership can seem expensive, you’re also increasing your interest in a very valuable asset.
And with a little digging and know how, you could make your home loan and credit cards work for you. Many lenders are offering sweet travel deals when you borrow to buy so purchasing a home could lead to an exotic holiday.
Jump on a plane
Macquarie Bank is just one example of an Australian lender that’s wooing customers with its travel deals.
The Macquarie Bank Flyer Home Loan is perfect for property owners who consider themselves jet setters. But what do you have to do to earn free travel?
When you purchase a house, you’ll need to draw down funds on settlement day — your legal representative will liaise with your bank about this. For every $100,000 that’s drawn down (borrowed) on a Bank Flyer Home Loan, you’ll get 10,000 Qantas Points.
Plus, you’ll get 1000 points every single month for your loan term, provided there’s a balance of at least $150,000. Going off this figure, you’ll also get 25,000 extra points on your third and fifth loan anniversaries!
If you fly from Sydney, you can get to food-haven Singapore with 60,000 points, plus just under $300. Head to eclectic Tokyo with 72,000 points and just over $250 or to culture capital New York with 128,000 points plus a little over $500.
Lesley Grant, Qantas Loyalty Chief Executive Officer, said the airline’s online frequent flyer hub is in high demand.
“Redeeming points for flights is by far the most popular choice for members.”
So – will you be one of them?
Keep flying high
It’s not just Macquarie Bank that offers free travel to homeowners.
When you secure a home loan through an Aussie Mortgage Broker, you’ll get 75,000 Virgin Velocity Points!
This is a good option for those who want to get the best deal possible by seeing what different lenders are offering at any one time. Another way to secure a flexible mortgage with a favourable interest rate is to use a home loan comparison tool.
Swipe your way to the clouds
Are you dreaming of an exotic overseas trip? It’s not just a home loan that could help you get there that much faster.
Many credit card providers offer travel perks for those who swipe the plastic. If you can put your everyday spending on your credit card and pay it off in full every month, then you’re effectively getting rewarded for nothing! Just remember to keep tabs on when your repayments are due — there’s no point getting bonus travel points if you’re being charged hefty interest.
Commonwealth Bank‘s Gold Awards Credit Card gives users awards points, which can be redeemed at Flight Centres, among other stores. American Express‘ Velocity Escape Card and National Australia Bank’s Velocity Rewards Premium Card could help you jump on a plane that much quicker.
Plus, many lenders offer travel insurance — check the fine print, as you often need to activate the cover and use the lender’s credit card for a certain proportion of your travel costs, from flights to accommodation.