Australian Military Bank Home Loans: The 2026 Review

Established in 1959, Australian Military Bank is Australia's longest-serving financial institution dedicated to the Defence community. Originally founded as a credit union, the bank was created to provide tailored financial services to Australian Defence Forces personnel and their families. Over the years, it has transitioned into a fully-fledged bank, maintaining its core mission of supporting military members with specialised financial products.

Today, Australian Military Bank operates as a community-owned entity, independent of the Big 4 banks, and is headquartered in Sydney, New South Wales. With a strong national presence through both physical branches and digital platforms, the bank offers 21 products with 46 variations, focusing on the unique needs of Defence personnel. Its business model is centred around reinvesting profits to benefit its member base, ensuring competitive rates and personalised service.

The bank's target market includes active and retired Defence personnel and their families across Australia. It is particularly known for its Defence Home Ownership Assistance Scheme (DHOAS) loans, which provide significant benefits such as no monthly fees and a redraw facility. By focusing on the specific needs of the Defence community, Australian Military Bank continues to uphold its reputation as a trusted financial partner, offering tailored solutions and exceptional customer service.

• Legal Name: Australian Military Bank Ltd
• ABN: 48087649741
• ACN: 087649741
• Established: 1959
• Headquarters: Sydney, New South Wales
• Type: Community-Owned Bank
• Ownership: Independent

• Website: https://www.australianmilitarybank.com.au
• Phone: 1300 13 23 28

Australian Military Bank offers tailored financial solutions for Defence personnel, featuring flexible loan options and competitive benefits such as no monthly fees and DHOAS subsidies.

• Split Loan: The Split Loan feature allows borrowers to divide their home loan into fixed and variable interest rate portions. This provides flexibility and control over interest costs, enabling borrowers to benefit from both rate stability and potential interest rate decreases.
• Extra Repayments Without Fees: Borrowers can make unlimited extra repayments on their loans without incurring fees. This feature supports faster loan repayment and interest savings, offering flexibility for those using BNPL or line of credit services.
• Points-Based Loyalty Program: The bank offers a points-based loyalty program that rewards borrowers for their financial commitments. This program provides additional value through redeemable points, enhancing the overall borrowing experience.
• Redraw Facility: The Redraw Facility allows borrowers to access additional repayments made on their loan. This feature provides financial flexibility, enabling access to funds when needed, with a $10 fee per redraw.
• Offset Account: An offset account can be linked to the home loan, reducing the interest payable by offsetting the loan balance with the account balance. This feature helps in saving on interest costs over the life of the loan.
• Principal and Interest Repayments: Available on all loans, this option allows borrowers to pay down both the principal and interest, reducing the overall loan balance over time. It supports long-term financial planning and debt reduction.
• DHOAS RateSaver Home Loan: This loan offers no monthly or annual fees and unlimited additional repayments, tailored for Defence personnel. Eligible members can receive DHOAS subsidies up to $936 per month, enhancing affordability.
• First Home Buyer Support: The bank supports eligible first home buyers through the Australian Government 5% Deposit Scheme, which provides a government guarantee, reducing the deposit requirement and facilitating home ownership.

Australian Military Bank provides a transparent fee structure, offering clarity on costs associated with their home loan products, including both upfront and ongoing fees.

• RateSaver Processing Fee: $450 - Applicable when borrowing in excess of 80% Loan-to-Value Ratio (LVR).
• Property Valuation Fee: Variable - Charged at cost with a minimum of $250, required for property assessment.
• Consent Fee: $250 - Applies for second or subsequent mortgages or lease registrations.
• Mortgage Discharge Fee: $120 + 3rd party costs - Charged when the mortgage is fully repaid and discharged.
• Redraw Fee: $10 (Per redraw) - Applies each time funds are redrawn from the loan.
• Arrears Notice Fee: $20 (Per notice) - Charged for the second and subsequent reminders for overdue payments.
• Paper Statement Fee: $2 (Per statement) - Charged for each paper statement issued.
• Audit Certificate Fee: $50 (Per certificate) - Charged for each audit certificate requested by the borrower.

Australian Military Bank primarily lends to members of the Australian Defence Forces and their families, offering tailored financial solutions with specific eligibility requirements.

• Applicants must be at least 18 years old.
• Applicants must be Australian citizens or permanent residents.
• Applicants must be natural persons, not legal entities.
• Applicants must be currently employed or receiving a regular income.
• Self-employed applicants should contact the bank before applying.
• A minimum loan amount of $150,000 is required.
• Lenders Mortgage Insurance (LMI) is required for loans with less than a 20% deposit.
• The loan is not available for construction purposes or interest-only options.

• LMI is required if the deposit is less than 20%.
• Eligible Defence members may receive DHOAS subsidies up to $936 per month.
• The bank supports first home buyers through the Australian Government 5% Deposit Scheme.