Virgin Money - Bonus Velocity Points for new home loans or refinancing

[knightfall88]

Hi,

Noticed this deal from Virgin Money. From the ozbargain page:

This means a customer borrowing $500,000 will receive 100,000 Velocity Points after settlement, enough Points for a return economy flight from Sydney to Los Angeles.
In addition, you will earn a further 1,000 Velocity Points every month (per loan account).
Also, receive 30,000 Velocity Points every 3 years you are a continuous Reward Me Home Loan customer, when your loan balance remains above $50,000.
You could receive 304,000 Velocity Points over 6 years with a $500,000 loan:
100,000 Points after settlement
144,000 monthly Points (across 2 loan accounts)
30,000 Points every 3rd year anniversary

This sounds tempting. Has anyone had experience dealing with Virgin Money on refinances?

Virgin Money - New Home Loans (Including Refinancing) - Double Bonus Velocity Points

 

[Ains]

I’m keen to hear more about this too as I want to refinance very soon.

 

[33kft]

What are their rates like? Establishment fees? Monthly fees?

300K points is not that much in the scheme of things (and that's after 3 years), certainly not enough to make a financial decision that adds recurring, compounding fees on to your mortgage. Cheaper, faster and safer to go chasing credit card sign on fees I would say.

 

[knightfall88]

What are their rates like? Establishment fees? Monthly fees?

300K points is not that much in the scheme of things (and that's after 3 years), certainly not enough to make a financial decision that adds recurring, compounding fees on to your mortgage. Cheaper, faster and safer to go chasing credit card sign on fees I would say.

It's a $150 settlement fee
and $10/month account fee but it includes offset account and redraw facilities which most lenders charge an annual package fee for anyway.

3.73% for variable and 3.69% for 2 year fixed

The rates are good and if you haven't refinanced recently, you will likely be paying a hell lot more given lenders have increased the rates for existing customers recently.

I think it's worthwhile if you already need to refinance to a cheaper rate

 

[maccaisking]

I have been with VM for 2.5 years, we refinanced on a double points promo and then bought a 2nd property during a triple points promo. We were looking around to get a better rate and they were the same as ING, so the points were the deciding factor. For us the $10/month fee is offset by the 1k VFF points/month. A few notes:

• The online banking platform is awful, and no debit card available so a 2nd account is required (we use ING for this)
• Although I’ve had very few occasions to call them phone support is good and I have always had Aus call centers
• I think they only deal with brokers and the process was quite slow the first time around, so if buying with 30 day settlement I would be cautious, but to refinance this isn’t a big issue

Needless to say do your own research on rates, suitability, etc but I have been quite happy with them

 

[knightfall88]

I have been with VM for 2.5 years, we refinanced on a double points promo and then bought a 2nd property during a triple points promo. We were looking around to get a better rate and they were the same as ING, so the points were the deciding factor. For us the $10/month fee is offset by the 1k VFF points/month. A few notes:

• The online banking platform is awful, and no debit card available so a 2nd account is required (we use ING for this)
• Although I’ve had very few occasions to call them phone support is good and I have always had Aus call centers
• I think they only deal with brokers and the process was quite slow the first time around, so if buying with 30 day settlement I would be cautious, but to refinance this isn’t a big issue

Needless to say do your own research on rates, suitability, etc but I have been quite happy with them

Thanks. Good feedback