taking a sanity break to talk Mortgages for a minute! BNZ offer a GlobalPlus mortgage – you get Airpoits Dollars based on a rate of $100 Airpoints Dollars for every $100,000 of mortgage, per year.
They also do a FlyBuys mortgage, which for ease I will tell you now is pretty much equivalent in terms of cost and reward. You can use flybuys to buy flights and “stuff” including the ubiquitous Stick Blender, or you can convert FlyBuys to Airpoints Dollars at Air New Zealand. Airpoints Dollars simply sit on your account, and you use them as cash to go towards the cost of a flight.
Easy Peasy. Ish.
Back to the mortgage.
The thing to note here is that on a 2 Year Fixed mortgage – you could actually pay less interest if you went with the Classic Mortgage.
- A 0.25% mortgage discount will save you $250 per $100,000 of mortgage per year.
- Which means on a 2 year rate, you are actually paying an extra $250 right now, in order to get $100 “free” airpoints.
- You might as well pay less interest and save say $20 a month into a Holiday Savings account, and actually get $240 dollars a year for your holidays instead of just $100.
Does this make sense to anyone?
Sure on any of the other years rates it works out the same interest, so yeah – take the Airpoints Dollars!
But CHECK! I have a sinking suspicion that many people don’t and are actually pay more money than the Airpoints dollars are worth.