Defence Bank began as Defence Force Credit Union in 1975, and changed its name in 2012. Offering financial products - including a range of competitive home loans - to Australian Defence Force personnel and the wider Aussie public, Defence Bank is one of Australia’s largest member-owned banks.
Rates and fees verified as correct at 22 May, 2019. Other information correct at the time of writing.
If you’re after a no-frills home loan solution that will help you plan a monthly budget and stick to it, then the fixed rate option from Defence Bank might be for you. You can borrow between $50,000 and $1,500,000, up to 95% of the property’s value. And to help pay off your home loan quicker, you have the ability to make fee free extra repayments. Just remember to budget for the upfront and monthly service fees attached to this offer!
| Product | Fixed 3 year rate | Comparison Rate* | Service fee | Upfront fee | Monthly repayments ‡ |
|---|---|---|---|---|---|
| 4.39% p.a. | 4.75% p.a. | $8.00 monthly | $901 | ||
| 4.04% p.a. | 4.60% p.a. | $8.00 monthly | $901 |
For a little more flexibility, the variable rate home loans from Defence Bank deliver. Like the fixed rate alternative, you can borrow up to 95% of the property’s value, starting from $50,000. In terms of flexible features, you’ll have the ability to make unlimited fee free extra repayments, free redraws and the use of an offset account. But keep in mind that there are both upfront and monthly service fees to consider.
| Product | Rate | Comparison Rate* | Service fee | Upfront fee | Monthly repayments ‡ |
|---|---|---|---|---|---|
| 4.67% p.a. | 4.83% p.a. | $8.00 monthly | $901 | ||
| 4.59% p.a. | 4.75% p.a. | $8.00 monthly | $901 | ||
| 4.12% p.a. | 4.12% p.a. | $0.00 | $0 | ||
| 3.95% p.a. | 3.95% p.a. | $0.00 | $0 |
To cash in on some great bundling bonuses, take a look at Defence Bank’s fixed rate home loan package. You’ll pay a yearly fee on this offer, and you can borrow up to 95% of the property’s value, starting from $150,000. Along with fee free additional repayments, this home loan package gives you the chance to score perks like discounted insurance premiums, extra interest on term deposits, waived application fees on car and personal loans and an annual fee-free credit card.
| Product | Fixed 3 year rate | Comparison Rate* | Service fee | Upfront fee | Monthly repayments ‡ |
|---|---|---|---|---|---|
| 4.29% p.a. | 4.90% p.a. | $380.00 yearly | $0 | ||
| 3.94% p.a. | 4.75% p.a. | $380.00 yearly | $0 | ||
| 4.29% p.a. | 4.86% p.a. | $380.00 yearly | $0 | ||
| 3.94% p.a. | 4.71% p.a. | $380.00 yearly | $0 | ||
| 4.29% p.a. | 4.93% p.a. | $380.00 yearly | $0 | ||
| 3.94% p.a. | 4.78% p.a. | $380.00 yearly | $0 |
Want all the package discounts and flexible features? Then check out the variable rate home loan package from Defence Bank. You can borrow amounts starting from $50,000, up to 95% of the property’s value. There's also a range of flexible features on offer, including unlimited fee-free extra repayments, a redraw facility (minimum applies) and the use of an offset account. And to sweeten the deal, remember to take advantage of the great bundling bonuses, like waived application fees on both personal and car loans, waived annual fee on your credit card, boosted interest on term deposits and discounted insurance premiums. But don’t forget to also factor the yearly fee into your budget!
| Product | Rate | Comparison Rate* | Service fee | Upfront fee | Monthly repayments ‡ |
|---|---|---|---|---|---|
| 4.62% p.a. | 4.99% p.a. | $380.00 yearly | $0 | ||
| 4.54% p.a. | 4.91% p.a. | $380.00 yearly | $0 | ||
| 4.57% p.a. | 4.94% p.a. | $380.00 yearly | $0 | ||
| 4.49% p.a. | 4.86% p.a. | $380.00 yearly | $0 | ||
| 4.67% p.a. | 5.04% p.a. | $380.00 yearly | $0 | ||
| 4.59% p.a. | 4.96% p.a. | $380.00 yearly | $0 |
‡ Results from this calculation are estimates only as individual lenders apply different formulas. Actual repayments will depend on your individual circumstances and interest rate changes.
| Unlimited free extra repaymentsUnlimited free extra repayments | You can make unlimited fee-free additional repayments to pay your home loan off quicker. Just remember that on fixed rate options, if you pay the entire loan off before the fixed term is up, you might get hit with an early break fee. |
| Low depositLow deposit | Having trouble saving up a deposit for your home loan? No worries. With Defence Bank, you can borrow up to 95% of the price of the property. |
| Package benefitsPackage benefits | Take out a home loan package from Defence Bank, and you can save on other banking products! Get a credit card with no annual fee, bonus interest on your term deposits, discounted insurance premiums and waived application fees on any personal or car loans. |
| Flexible repayment scheduleFlexible repayment schedule | Your repayments can be monthly, fortnightly or weekly - whatever suits your budget. |
To find out what everyday Aussies think of their Defence Bank home loans, read through our customer review section.
Great as far as a bank goes
Great as far as a bank goes
Vanessa, New South Wales, reviewed about 4 years ago
This bank is small, although it has connections with the NAB. Although its interest rates may be higher than some other competitors, the support you receive from staff cannot be found at any other bank.
This bank is small, although it has connections with the NAB. Although its interest rates may be higher than some other competitors, the support you receive from staff cannot be found at any other bank.
Geralyn, Australian Capital Territory, reviewed about 4 years ago
Too many fees, and not competitive compared to other lenders.
Too many fees, and not competitive compared to other lenders.
Hris, New South Wales, reviewed over 4 years ago
They know who you are and are extremely helpful.
They know who you are and are extremely helpful.
Jill, Queensland, reviewed over 4 years ago
Still in the process of applying for a DHOAS home loan. They have taken months and still no decision has been made. Only after threatening to drop the application and go to another bank has any progress been made but they are still missing...
Still in the process of applying for a DHOAS home loan. They have taken months and still no decision has been made. Only after threatening to drop the application and go to another bank has any progress been made but they are still missing their own deadlines they give me. They are useless with non-standard loans. Purchasing off a related party for less than market value with multiple sources of income, forget it. Next time, use a competent bank.
Brian, Victoria, reviewed over 4 years ago
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Anyone can bank with Defence Bank - you don’t have to be a member or employed by the Defence Force. But keep in mind that if your home loan application is approved, you’ll have to become a member before actually securing the loan. You can become a member by filling out and mailing the membership application or by visiting a Defence Bank branch.
When you apply for a Defence Bank home loan, make sure you have:
