The Virgin Money RewardMe Home Loan Offer from Virgin Money offers Velocity Points which vary by the size of the loan and how long you hold it. When taking up the RewardMe Home Loan until 30 November, you’ll also receive double Velocity Points on settlement.
The Virgin Money Home Loan offers:
- The ability to earn Velocity Points upfront at settlement and ongoing for the life of the loan
- Receive double Velocity Points when you apply for a home loan with a loan to value ratio (LVR) below 90%
- Competitive rates from 3.64% p.a.
- Offset account and additional repayments
You may find the Virgin Money home loan through other mortgage brokers and finance professionals too. This guide is intended to cover the points-earning features and capability of the loan and is not a general recommendation of this product. Please review all the necessary information about this home loan to ensure it meets your personal circumstances.
To be eligible for the offer, simply apply for an eligible Reward Me Home Loan by 30 November 2018 and settle by 28 February 2019.
Once approved, customers will earn the following:
- 20,000 Velocity Points for every $100,000 borrowed at settlement
- 30,000 Velocity Points every three years the loan is held
- 1,000 Velocity Points per month for each ‘loan split’—a split loan means you split your borrowings into more than one loan, e.g. a variable rate loan and a fixed rate loan
As an example, for an average Sydney or Melbourne home loan of $750,000, this current double points offer would earn you 282,000 Velocity Points over six years without a split loan, or a 354,000 Velocity Points if the loan is split on inception. That is enough points for a return Business Class award seat from Sydney to Los Angeles or Melbourne to London.
To get an estimate of the number of Velocity Points you are likely to earn based on your circumstances, you will find the Velocity Points calculator handy.
Virgin Money Mortgage customers can also access additional benefits that include:
- RewardMe Home Loan customers will receive 10,000 Velocity Points when they buy Virgin Home Insurance, Virgin Contents Insurance or both
- 50% discount on the annual fee on the Virgin Money High Flyer Velocity Card, as long as you remain a home loan customer, which comes with $129 Virgin Australia flight voucher and two complimentary lounge passes to Virgin Australia lounges—this represents a discount of $145 each year
In our research, we found that interest rates and fees for Virgin Money Home Loans were generally competitive with its major rivals. However, this is only one factor to consider, and it may be prudent to seek professional financial advice for your personal financial circumstances.
Further information can be found at Virgin Money Home Loans.
Things to consider
The home loan interface and apps are fairly basic, so do not expect the same level of online and app capabilities that you may find with the larger banks. This basic functionality also extends to the Virgin Money High Flyer credit card app and website. This is the cost-benefit trade-off between accessing lower interest rates and getting more interactive and useful IT applications and services.
If you take up the Virgin Money High Flyer card when applying for the Virgin Money RewardMe Home Loan, you will likely get excluded from any non-home-loan-related card offer for bonus points, such as an 80,000-Velocity Points sign-up bonus. You will, however, get offered something lesser like 20,000 points in bonuses (in addition to half the annual fee for the life of the home loan with them) if you meet their minimum spend requirement and applicable terms and conditions.
Having another choice in the market for a points-generating home loan is always a welcome addition, however, as tempting as earning a bundle of Velocity pPints may be, note that this is only one factor in your home loan decision.
Others should include the interest rates offered, loan features and customer service and applications, with this list not being exhaustive. Seeking the advice of a financial professional to discuss these factors along with your personal financial circumstances may be something you may wish to consider.
If, however, you do come to the decision that a Virgin Money RewardMe Home Loan does meet your financial needs, then this is a great way to earn Velocity Points while at the same time building your future nest egg.