Home loans poised to take off with frequent flyer points

Home loans linked to frequent flyer programs aren't that new - although, with Macquarie Bank having just relaunched a new suite of home loan products that reward you with Qantas points, it looks as if they are back on the radar.

You'll earn 10,000 Qantas points for every $100,000 drawn down at settlement, 1000 Qantas points each month if the outstanding loan balance is at least $150,000 on the last business day of the month and 25,000 bonus Qantas points on the third and fifth anniversaries of the loan.

On a $400,000 home loan over five years, you could earn 150,000 frequent flyer points.

As with any product linked to a rewards program, make sure that it stacks up on its own merits.

In this, case Macquarie's home loans are well priced at 4.9%pa for mortgages less than $500,000 and with an loan-to-valuation ratio (LVR) less than 80%.

It's worth looking into the terms and conditions further if you are a frequent flyer.

-Effie Zahos

Low-cost broking

There hasn't been a new online broker since 2007, but OpenMarkets is set to change that. The recently launched low-cost service is charging $13.95 or 0.07% per transaction.

It trades on the Australian Securities Exchange, National Stock Exchange of Australia and SIM VSE.

OpenMarkets' retail services include a simple no-frills web trading platform together with an advanced trading platform, according to chief operating officer Andrea Marani. He believes OpenMarkets' transaction cost is lower than the fee schedules of its bank competitors.

"Our focus is very much on providing a low-cost, personalised, online, independent broking service," says Marani.

-Susan Hely

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