Your mortgage is almost certainly the single largest financial commitment you have. It is also the single largest points-earning opportunity available in Australia—if you understand the math.
The 100,000 Points Per Year Proposition
Lenders such as Qantas Money Home Loans offer up to 100,000 Qantas Points each year for the life of the loan on eligible balances, alongside initial settlement bonuses that can exceed 200,000 to 300,000 points.
The Critical Calculation: Rate vs Points
Never take a higher interest rate solely for the sake of points. Here is the golden rule:
- Value Qantas Points conservatively at 1.2 to 1.5 cents each for business/first redemptions.
- A 100,000 point annual bonus has an effective value of roughly $1,200 to $1,500.
- On an $800,000 loan, a 20 basis point (0.20%) difference in interest rate costs you $1,600 per year in interest.
If the lender’s comparison rate is competitive with the broader market (within 5–10 basis points of top-tier non-points offers), the points bonus is pure arbitrage. If their rate is 30+ basis points higher, the “free flights” are actually costing you money.
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