Any Reason Why I Would/Wouldn’t Go with a Qantas Home Loan for Investment Purposes?

morse on 15/06/2024 - 19:26

Looking to buy an investment property and have a specific one in mind. Started talking to banks and brokers this week but also came across Qantas Money as an option. It comes with 100k points each year and the interest rate is the best offered so far. The loan is with Adelaide Bendigo bank but you apply directly through Qantas money. I’d be looking at using the offset facility that is $10/month.

So far in my research I’ve looked at:

Qantas does home loans? Review
https://youtu.be/2EZZt5OrrD4?si=my_bEhxSFhfc5xM5

Big vs small banks for home loans
https://www.ozbargain.com.au/node/496737

So essentially every bank/broker I’ve talked to has said we’re an attractive customer and getting a loan will be no issue. But hoping to get the best deal and not put ourselves at disproportionate financial risk.

I understand Qantas points are not as good as cash, but no one has offered us cash and this mortgage has the best rates even when fees are considered. Previously we’ve enjoyed good use of Qantas points for classic reward flights and upgrades.

I guess I’m asking if there’s something else I’m missing and should consider like any hidden risks or fees that would make another option more attractive.

Thanks for any advice! Particularly if anyone has experience with this product.

Financial Home Loan Loan

Comments

  • Jules855 on 15/06/2024 - 19:43
    +4

    The upfront fees are my biggest issue. They hide them quite well, but you are looking at a minimum of $850 https://www.qantasmoney.com/home-loans/rates-and-fees

    • morse on 15/06/2024 - 20:19

      Thanks! I saw that, but that is less than the difference in interest in one year compared to what I’ve been offered so far. I do still need to go back and negotiate from first offers, but not sure they’ll go that low or even how close to it they will go. Closest is 6.48% from bank or 3.29% through broker but still haven’t looked at fees etc with broker products.

      • GuyfromMelbourne on 15/06/2024 - 20:51

        Too much fees. Have you asked the cashback brokers on ozbargain? That might work out better.

        • morse on 15/06/2024 - 21:35
          +1

          I haven’t, didn’t even know such a thing existed but am generally wary of smaller online businesses when it comes to finances.

          • star-ggg on 16/06/2024 - 08:41
            +1

            @morse: Not sure what you are wary of. Both large and small lenders have various fee structures. You will have to to do your due diligence regardless of the size of the lender.

            Your main risk is the money in the offset account if you have one but this is covered up to $250k by the government:

            "Mortgage offset accounts that are separate deposit accounts are covered under the FCS. However, mortgage accounts with redraw facilities that are not separate deposit accounts are not covered by the FCS. " https://www.apra.gov.au/frequently-asked-questions-about-ban…

            Other than that, you OWE the lender a lot of money. They're the ones taking the risk on you. IF there was a huge Enron scandal and your lender went under then most likely another lender will buy your loan off them but at worst it's just a minor inconvenience for you like switching banks.

            • morse on 16/06/2024 - 09:05

              @star-ggg: Thanks, I’m not sure what I’m wary of either but as it’s a lot of money (we’re putting in a fairly hefty deposit too) and a relatively big financial decision overall so just trying to do my due diligence. On the other thread linked above seraphin7 mentioned that there’s a risk with smaller banks they may push up rates if they are squeezed for funds, that’s something I hadn’t considered, but assume in that instance refinancing might be an option.

              • star-ggg on 16/06/2024 - 09:08

                @morse: Every lender has different rates at any point in time depending on their business strategy. It's in your own financial interest to keep an eye out for good refinancing deals all the time.

  • MrThing on 15/06/2024 - 20:12
    +4

    its qantas branded nuff said

    go with timely (tictoc)

    • MS Paint on 15/06/2024 - 20:21

      Quite A Nice Trap, Any Savings?

    • morse on 15/06/2024 - 20:28

      So what’s the catch with these low interest rates?

      • MrThing on 16/06/2024 - 03:04
        +3

        the catch is you pay less

    • bargainHunterOz on 16/06/2024 - 00:04

      Quantas Home loans and Tictoc, both are whitelabels of Bendigo and Adelaide bank Home which is one of the trusted bank.

      • morse on 16/06/2024 - 02:36

        Is there any issues going with a ‘white label’ that your know of?

        • stratbargain on 16/06/2024 - 06:59
          +1

          No as long as you're aware of all fees and as long as they are covered under the FCS for your offset money.
          Other thing to be aware of is some traditionally have offered low rates to get new users then jacked them off cycle.

          I'm with Up Bank which is also white labeled bendigo/adelaide home loans

          The only other thing to be aware of is some of the traditional loan only offerings have terrible, dated online banking. I was with loans.com.au for years and the main reason i moved to Up was to have all my banking in one place. Their banking side is amazing, and so far the loan has been as well.

          I guess that's one of the reasons people default to comm bank etc. have everything in one spot. But you do pay a premium for it usually.

  • Duckie2hh on 16/06/2024 - 09:54

    What's the rate offered OP?

    • morse on 16/06/2024 - 11:29

      6.24% for principal and interest investment loan with offset facility

      • Duckie2hh on 16/06/2024 - 16:06
        +1

        I just got 6.19, interest only, no offset.

  • screensaver on 16/06/2024 - 15:10

    Check with the main qantas money card page and also Quodos bank as its them direct

  • screensaver on 16/06/2024 - 15:18

    Qantas money has an additional 50000 points upfront for a limited time https://www.qantasmoney.com/home-loans/features-and-benefits

  • screensaver on 16/06/2024 - 15:28
    +2

    Qudos does it this way Earn 150 Qantas Points per annum for every $1000 of your loan balance, credited monthly, rate 6.69 https://www.qudosbank.com.au/products/home-loans/qantas-poin…

  • Bristhrifty on 27/06/2024 - 11:10
    +1

    So I thought this loan looked like a good idea and made an application. The rate is about 0.3% lower than my current rate but my loan is fully offset so the rate doesn'st really matter to me, I just wanted the points. The upfront loan fees are just over $1400, but I am eligible for the 150,000 points because I applied for $500K. During the application process though I was informed of their policy that if your loan is more than 70% offset for 12 months you're not eligible for the additional annual 100,000 points. Also if you're remaining principle is less than 70% of where you should be based on your original payment schedule, you're also not eligible - this is likely to occur after a few years if the offset balance is high.

    At this point I think its probably not really sure if its worth paying the $1400? It seems like the fees and the value of the points might be about the same?

    Thoughts?

    Here is a link to their points policy: https://www.qantasmoney.com/assets/home-loans/points_eligibi…

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