Australian Military Bank Home Loans: The 2026 Review

Founded in 1959, Australian Military Bank is Australia's longest-serving Defence financial institution. It was initially established to address the financial needs of the Defence community, evolving from a credit union into a fully-fledged bank. Over the years, it has maintained its commitment to military personnel, ensuring that its services are tailored to meet the unique requirements of its members.

Today, Australian Military Bank operates as an independent, community-owned entity, distinct from the Big 4 banks. Headquartered in Sydney, New South Wales, it offers a blend of branch and online services, with branches strategically located on military bases to enhance accessibility. The bank's business model focuses on providing personalised service and competitive financial products, particularly for Defence personnel.

The bank's primary target market includes Australian Defence Force personnel and their families. Its offerings, such as the Defence Home Ownership Assistance Scheme (DHOAS) loans, provide significant subsidies, making home ownership more accessible for military members. With competitive rates and flexible loan features, Australian Military Bank is positioned as a preferred financial partner for those serving in the Defence community, offering tailored solutions and a deep understanding of their unique needs.

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

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

Australian Military Bank offers tailored home loan solutions for Defence personnel, featuring competitive rates, flexible repayment options, and unique benefits like the Defence Home Ownership Assistance Scheme (DHOAS). These features provide significant cost savings and financial flexibility to borrowers.

• Split Loan: The Split Loan feature allows borrowers to divide their loan into fixed and variable rate components, offering the stability of fixed rates with the flexibility of variable rates. This can help manage interest rate fluctuations and optimise repayment strategies.
• Redraw Facility: The Redraw Facility enables borrowers to access extra repayments made on their loan, providing financial flexibility for unexpected expenses. A fee applies for redraws, but it offers a convenient way to manage cash flow without taking out a new loan.
• Extra Repayments: Borrowers can make unlimited extra repayments without incurring fees, allowing them to pay off their loan faster and reduce interest costs. This feature is particularly beneficial for those using Buy Now, Pay Later (BNPL) services or lines of credit.
• 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 is available on select products and can significantly decrease the overall interest paid over the loan term.
• Points-Based Loyalty Program: The bank offers a points-based loyalty program, rewarding borrowers for their financial commitment. Points can be redeemed for various benefits, providing added value and incentivising long-term customer relationships.
• Principal and Interest Repayments: Loans are available with Principal and Interest repayments, ensuring borrowers steadily reduce their loan balance over time. This repayment option is available on all products, promoting disciplined financial management.
• Interest-Only Loans: Interest-Only Loans are available for a maximum of five years, providing lower initial repayments. This option is ideal for investors seeking to maximise cash flow, though it requires careful consideration of long-term repayment strategies.
• Defence Home Ownership Assistance Scheme (DHOAS): The DHOAS provides subsidies up to $1,031 per month for eligible Defence personnel, making home ownership more affordable. This significant financial support underscores the bank’s commitment to serving military members.
• No Monthly or Annual Fees: Certain home loans come with no monthly or annual fees, reducing the overall cost of borrowing. This feature enhances affordability and makes managing finances more straightforward for borrowers.

Australian Military Bank provides a transparent fee structure, offering clarity on costs associated with home loans, particularly for Defence personnel.

• 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, covering property valuation expenses.
• Consent Fee: $250 - For registering a second or subsequent mortgage or lease.
• Mortgage Discharge Fee: $120 + 3rd party costs - Payable upon discharge of the mortgage, additional third-party costs may apply.
• Redraw Fee: $10 (Per redraw) - Charged for each redraw from the loan, applicable to loans with redraw facility.
• Switch/Variation Fee: $100 + 3rd party costs - Applies to home and investment loans when switching or varying loan terms, additional break costs may apply for fixed-rate loans.
• Paper Statement Fee: $2 (Per statement) - Charged for each paper statement issued.
• Arrears Notice Fee: $20 (Per notice) - Charged for the second and subsequent arrears notices sent by letter or phone.

Australian Military Bank caters primarily to Defence personnel, offering accessible home loan options with unique benefits tailored to their needs.

• Applicants must be at least 18 years old.
• Applicants must be citizens or permanent residents of Australia.
• Applicants must be currently employed or receiving a regular income; self-employed individuals should contact the bank prior to applying.
• Applicants must be natural persons, not other legal entities.
• Minimum loan application amount is $150,000.
• Some products are exclusively available to Defence personnel under the Defence Home Ownership Assistance Scheme (DHOAS).

• Loan-to-Value Ratio (LVR) may vary, with some products allowing up to 95% LVR.
• Certain products may require a guarantor for deposits below 20%.
• The Defence Home Ownership Assistance Scheme (DHOAS) offers subsidies up to $1,031 per month for eligible Defence personnel.