based on 265 Defence Bank banking product reviews as rated by Mozo community

Defence Bank home loans

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 larger member-owned bank with 33 branches around Australia. And in 2021, Defence Bank took out a Mozo Experts Choice Home Loan Award in the Fixed Investor Home Loan category.

What home loans do Defence Bank offer?

Rates and fees verified as correct at 20 October, 2021. Other information correct at the time of writing. Advertiser disclosure.

Fixed Rate Home Loans

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!

Home loan repayments calculator

years

Product Fixed 3 year rate Comparison Rate Service fee Upfront fee Monthly repayments

2.49% p.a.

3.42% p.a.

$8.00 monthly

$901

2.59% p.a.

3.67% p.a.

$8.00 monthly

$901

2.49% p.a.

3.42% p.a.

$8.00 monthly

$901

Variable Rate Home Loans

For a little more flexibility, the variable rate home loans from Defence Bank deliver. With its Essentials Home Loan option, you can borrow up to 95% of the property’s value, starting from $50,000, while its Premier Home Loan allows you to borrow up to 80% of the property's value, starting from $250,000. 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. The Premier loan comes with none of the pesky upfront and ongoing fees, but the Essentials loan has a number of fees to factor in including legal, valuation, settlement and monthly service fees. 

Home loan repayments calculator

years

Product Rate Comparison Rate Service fee Upfront fee Monthly repayments

3.52% p.a.

3.68% p.a.

$8.00 monthly

$901

2.99% p.a.

2.99% p.a.

$0.00

$0

2.65% p.a.

2.65% p.a.

$0.00

$0

3.82% p.a.

3.98% p.a.

$8.00 monthly

$901

3.52% p.a.

3.68% p.a.

$8.00 monthly

$901

2.99% p.a.

2.99% p.a.

$0.00

$0

Fixed Package Home Loan

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. 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.

Home loan repayments calculator

years

Product Fixed 3 year rate Comparison Rate Service fee Upfront fee Monthly repayments

2.39% p.a.

3.59% p.a.

$380.00 yearly

$0

2.39% p.a.

3.55% p.a.

$380.00 yearly

$0

2.39% p.a.

3.62% p.a.

$380.00 yearly

$0

2.39% p.a.

3.59% p.a.

$380.00 yearly

$0

2.49% p.a.

3.76% p.a.

$380.00 yearly

$0

2.39% p.a.

3.55% p.a.

$380.00 yearly

$0

2.49% p.a.

3.72% p.a.

$380.00 yearly

$0

2.39% p.a.

3.62% p.a.

$380.00 yearly

$0

2.49% p.a.

3.79% p.a.

$380.00 yearly

$0

Variable Package Home Loan

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 personal loan, 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!

Home loan repayments calculator

years

Product Rate Comparison Rate Service fee Upfront fee Monthly repayments

3.47% p.a.

3.86% p.a.

$380.00 yearly

$0

3.42% p.a.

3.81% p.a.

$380.00 yearly

$0

3.52% p.a.

3.91% p.a.

$380.00 yearly

$0

3.47% p.a.

3.86% p.a.

$380.00 yearly

$0

3.82% p.a.

4.20% p.a.

$380.00 yearly

$0

3.42% p.a.

3.81% p.a.

$380.00 yearly

$0

3.52% p.a.

3.91% p.a.

$380.00 yearly

$0

Defence Bank home loan features in a glance

Free icon

Unlimited 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.

Deposit icon

Low deposit

Having trouble saving up a deposit for your home loan? No worries. With most Defence Bank homes, you can borrow up to 95% of the price of the property, although you may have to budget for an extra cost known as Lenders Mortgage Insurance

Free icon

Package 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.

Schedule icon

Flexible repayment schedule

Your repayments can be monthly, fortnightly or weekly - whatever suits your budget.

How are Defence Bank home loans rated?

Mozo users have rated Defence Bank home loans on price, features, convenience, trust and customer service so you can see what real Aussies have to say about their experiences.

Icon of home-loans
Defence Bank home loans
Overall
Price
Features
Customer service
Convenience
Trust

28 Reviews

Recent Defence Bank home loan reviews

Defence Bank Essentials Home Loan (Fixed)
Overall 10/10
Great customer service.

Great customer service and always willing to help.

Read full review

Great customer service and always willing to help.

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Craig, Victoria, reviewed 12 months ago
Defence Bank Essentials Fixed Home Loan (Ultimate Package)
Overall 3/10
Ultimate rip off package.

I have banked with them for over 15 years. When I took out my third home loan with them I was not informed of several issues that were to cause me disadvantage. I was moved from my no additional fee package to the 'new' ultimate package that saw my account attract several penalty fees. I had discussed fixing my home loan and having an offset during my loan officer interview and at no time was I told by the officer that the two features were not compatible. Once the loan was approved and I attempted to set this up as it was not done on initiation. I realised the loan officer had obfuscated to get the sale knowing that the product would not provide what I believed it would. This gave me a false financial analysis of the product and caused me to accept this loan over the loan of another bank. When my 2nd loan came out of a fixed rate period I was put into the variable rate. This was a rate higher than their standard variable rate. When I questioned why my rate was higher than the variable rate that should have been applicable to my loan under their ultimate package. They nearly changed it effective the date I called and kept the incorrectly charged interest from previous periods and pretended like what they were doing was fine.

Read full review

I have banked with them for over 15 years. When I took out my third home loan with them I was not informed of several issues that were to cause me disadvantage. I was moved from my no additional fee package to the 'new' ultimate package that saw my account attract several penalty fees. I had discussed fixing my home loan and having an offset during my loan officer interview and at no time was I told by the officer that the two features were not compatible. Once the loan was approved and I attempted to set this up as it was not done on initiation. I realised the loan officer had obfuscated to get the sale knowing that the product would not provide what I believed it would. This gave me a false financial analysis of the product and caused me to accept this loan over the loan of another bank. When my 2nd loan came out of a fixed rate period I was put into the variable rate. This was a rate higher than their standard variable rate. When I questioned why my rate was higher than the variable rate that should have been applicable to my loan under their ultimate package. They nearly changed it effective the date I called and kept the incorrectly charged interest from previous periods and pretended like what they were doing was fine.

Price
7/10
Features
1/10
Customer service
1/10
Convenience
7/10
Trust
1/10
Less
Todd, Western Australia, reviewed 3 months ago
Defence Bank Premier Low Rate Home Loan
Overall 8/10
One on one contact for all home loan needs

We speak to the same account manager every time, our emails go to the same person everytime. It is refreshing to have a single point of contact at our bank to discuss our financial affairs.

Read full review

We speak to the same account manager every time, our emails go to the same person everytime. It is refreshing to have a single point of contact at our bank to discuss our financial affairs.

Price
8/10
Features
8/10
Customer service
9/10
Convenience
7/10
Trust
10/10
Less
Alexander, New South Wales, reviewed over 1 year ago
Defence Bank Home Loan
Overall 10/10
Great!

Handy locations, great staff.

Read full review

Handy locations, great staff.

Price
10/10
Features
9/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Greg, Australian Capital Territory, reviewed almost 2 years ago
Defence Bank Essentials Fixed Home Loan (Ultimate Package)
Overall 10/10
A bank that's highly recommended

Great as far as a bank goes

Read full review

Great as far as a bank goes

Price
9/10
Features
9/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Vanessa, New South Wales, reviewed over 6 years ago

What do you need to apply for a Defence Bank home loan?

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 an application online or by visiting a Defence Bank branch.

When you apply for a Defence Bank home loan, make sure you have:

  • Identification documents, e.g. driver's licence, passport 
  • Employment details
  • Asset details (including, savings shares or property)
  • Debt details (including other loans, or credit cards)

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