Home loan offering takes off at Qantas

The financial services offering for Qantas Frequent Flyer members — Qantas Money — has rolled out its first branded home loan offering.

While Qantas Money has previously offered points for lender partner loans, it rolled out its first white label mortgage suite on Monday (6 February).

Qantas Money Home Loans offer Qantas Frequent Flyer members (or those willing to sign up to become one) mortgages of between $300,000 and $3 million.

Funded by Bendigo and Adelaide Bank, the loans are available to both PAYG and self-employed Australians (or permanent residents) purchasing a home or investment property in a capital city or major regional centre.

The mortgages only cover established properties (not those off the plan or under construction).

On settlement, borrowers can earn 100,000 Qantas Points and an annual bonus of 100,000 Qantas Points (which accrue three months after the settlement anniversary of their Qantas Money Home Loan for up to 30 years, provided the loan is not in arrears).

The Qantas Money Home Loan is powered by Bendigo-funded fintech Tic:Toc Enterprise and is therefore currently only available direct. It utilises the fintech’s technology to confirm borrower details in real time and “get an answer in minutes”. 

According to Qantas Money, by offering a “streamlined online process that assesses your application as soon as you complete it”, the time and cost of origination and assessment are cheaper and therefore “lowers the overall cost of securing a home loan and allows [Qantas Money] to offer competitive rates at low fees”.

Rates currently start at 4.67 per cent (4.73 per cent comparison) for a variable loan with principal and interest repayments. An application fee, loan processing fee, and settlement service fee also apply.

Noting the launch of Qantas Money Home Loans, Bendigo and Adelaide Bank’s chief customer officer, Richard Fennell, stated: “Qantas is an iconic Australian company. 

“We are proud of this association and the opportunity to work with them in bringing this product to market.”  

A spokesperson from Bendigo and Adelaide Bank added: “Qantas and Bendigo and Adelaide Bank are both unique Australian companies with long histories.

“From time to time, Bendigo and Adelaide Bank forms partnerships with companies that share our values and are attracted to our products and services.”

Anthony Baum, founder and chief executive of Tic:Toc, stated: “Our partnership with Qantas Loyalty demonstrates how customer-focused brands can now leverage technology and balance sheet partners to enter traditionally complex parts of the financial services industry, and create further value for their customers.”

[Related: Tic:Toc raids ASX board for new chair]