Defence Bank Home Loans: The 2026 Review
Rewarding ADF members with bonus rates and no application fees. Enjoy free redraws, but watch for the $45 annual credit card fee. Ready to maximize your benefits?
Bheja Verdict
Very Good
Defence Bank Home Loans At a Glance
6.19%
Variable • Owner Occupied
$0
Upfront fee applies
$0
Ongoing service fee
Current Defence Bank Home Loan Rates
Last updated: July 2026
- Average Rate
- 6.62%
- Best Rate
- 6.44%
- Monthly Payment
- $3,141
DHOAS Premier Low Rate
Defence Bank
5%-30% DepositRedraw6.44%Interest RateVariable6.44%Comparison Rate*$3,141per monthPrincipal And InterestFees:$250+ other fees may applyDischargePremier Low Rate
Defence Bank
4%-30% DepositRedraw6.49%Interest RateVariable6.49%Comparison Rate*$3,157per monthPrincipal And InterestFees:$250+ other fees may applyDischargeDHOAS Premier Home Loan
Defence Bank
Min 5% DepositOffsetRedraw6.54%Interest RateVariable6.54%Comparison Rate*$3,174per monthPrincipal And InterestFees:$250+ other fees may applyDischargePremier Home Loan
Defence Bank
Min 5% DepositOffsetRedraw6.59%Interest RateVariable6.59%Comparison Rate*$3,190per monthPrincipal And InterestFees:$250+ other fees may applyDischargeUltimate Essentials DHOAS Construction (OO)
Defence Bank
Min 5% DepositOffsetRedraw6.74%Interest RateVariable6.83%Comparison Rate*$3,240per monthPrincipal And InterestFees:$96+ other fees may applyOngoing/yearUltimate Essentials DHOAS
Defence Bank
Min 5% DepositOffsetRedraw6.74%Interest RateVariable6.83%Comparison Rate*$3,240per monthPrincipal And InterestFees:$96+ other fees may applyOngoing/yearUltimate Essentials Variable
Defence Bank
Min 5% DepositOffsetRedraw6.79%Interest RateVariable6.88%Comparison Rate*$3,256per monthPrincipal And InterestFees:$96+ other fees may applyOngoing/year
Defence Bank Product Statistics
Real-time insights and market analysis
Defence Bank offers 17 home loan products across 48 variations, the average variable rate is 6.70% p.a., the best available rate is 6.19% p.a..
Average Variable Rate
6.70%
28 products
Average Fixed Rate
6.63%
20 products
Best Available Rate
6.19%
Variable • Owner Occupied • P&I
Total Products
17
48 variations
Fee Summary
Application Fee
$0
Monthly Fee
$0
Discharge Fee
$250
Late Payment Fee
$20
Key Features
Across Defence Bank's range: 22 include an offset account, 28 offer redraw, 48 allow extra repayments, 39 support split loans.
Product Ranges
Defence Bank's interest rates range from 6.19% to 6.94% p.a., maximum LVR from 70% to 96%, loan amounts span $20,000 to $100,000,000.
Disclaimer: The key features displayed highlight what's available across the lender's home loan range. Individual products and variations may differ. Use the product table to search for a loan with the specific features you're looking for.
How Defence Bank Compares
| FEATURE | Defence Bank | Australian Mutual Bank LTD | Hume Bank | Fire Service Credit Union | Newcastle Permanent Building Society |
|---|---|---|---|---|---|
| Best Variable Rate | 6.19% | 5.64% | 5.99% | 5.89% | 5.99% |
| Best Fixed Rate (3yr) | 6.55% | 6.14% | 6.39% | — | 6.39% |
| Application Fee | $0BEST | $250 | $199 | $150 | $350 |
| Monthly Admin Fee | $0BEST | $0 | $0 | $0 | $0 |
| Offset Account | |||||
| Redraw Facility | |||||
| Product Variations | 48 | 182 | 115 | 5 | 109 |
Bheja Insight: Defence Bank waives application fees, saving borrowers hundreds compared to other community-owned lenders.
About Defence Bank
Company overview and contact information
Defence Bank is a community-owned financial institution headquartered in Melbourne, Victoria. As an Authorised Deposit-taking Institution (ADI) regulated by APRA and holding an Australian Financial Services Licence (AFSL 234582), it operates with a strong commitment to serving its members. With a focus on the Australian Defence Force (ADF) community, Defence Bank offers a range of financial products and services through both branch and online channels.
The bank provides an extensive selection of 17 home loan products, featuring 48 variations with interest rates ranging from 6.19% to 6.94%. Notable for its absence of application or establishment fees, Defence Bank also offers construction loans and free, unlimited redraws. These features make it an attractive option for those seeking flexible and cost-effective home financing solutions.
Defence Bank stands out with its Salute Account, which rewards ADF members with bonus interest rates and fee waivers for achieving milestones. Brokers working with Defence Bank are advised to be knowledgeable about the Defence Home Ownership Assistance Scheme (DHOAS) and specific allowances to effectively assist ADF members. This focus on tailored services and community support underscores Defence Bank's dedication to its niche market.
Company Details
Key Features
Defence Bank offers a comprehensive suite of home loan features designed to provide financial flexibility and cost savings, including a 100% mortgage offset account and no fees for extra repayments.
100% Mortgage Offset Account
Defence Bank provides a 100% mortgage offset account, allowing borrowers to reduce interest payments by offsetting their loan balance with savings. For example, a $50,000 offset can save $258 per month, enhancing financial flexibility.
Free Loan Redraw
Borrowers can access extra repayments with a free redraw facility, available online, with a minimum redraw amount of $100. This feature provides liquidity and control over additional funds when needed.
No Fees for Extra Repayments
Defence Bank allows borrowers to make extra repayments without incurring fees, enabling faster loan repayment and interest savings. This feature is available on all products, promoting financial flexibility.
Quick and Easy Online Application
The online application process at Defence Bank is designed to be quick and straightforward, allowing borrowers to apply for home loans conveniently from anywhere. This digital feature enhances accessibility and efficiency.
Term Deposits
Defence Bank offers competitive term deposit rates, providing a safe investment option for borrowers seeking to grow their savings. Bonus rates may be available as part of the Ultimate Package, enhancing returns.
No Application or Establishment Fees
Defence Bank waives application and establishment fees across its home loan products, reducing upfront costs for borrowers and offering significant savings.
Loan Portability
Borrowers can transfer their existing loan to a new property without the need to refinance, maintaining favourable terms and conditions. This feature offers convenience and flexibility during property transitions.
Interest-Only Periods
Defence Bank offers interest-only repayment options for up to 12 months during construction, providing borrowers with lower initial payments and increased cash flow during the building phase.
Australia-Based Contact Centre
Defence Bank's contact centre is based in Australia, ensuring that borrowers receive timely and local customer support, enhancing the overall service experience.
DHOAS Scheme Compatibility
Defence Bank's home loans are compatible with the Defence Home Ownership Assistance Scheme (DHOAS), providing benefits tailored for Defence Force members, such as reduced deposit requirements.
Fees & Charges
Defence Bank offers a transparent fee structure with several waived fees for specific packages, making it a competitive option for borrowers. They provide clear information on both recurring and conditional fees, ensuring borrowers are well-informed.
Fees subject to change. Refer to lender documentation for current rates.
Eligibility Criteria
Defence Bank offers home loans tailored for Australian residents, including special programs for Defence personnel. With flexible options, they cater to a variety of needs from first-time buyers to those seeking refinancing.
Important Notes
- LMI is required for loans with an LVR above 80%, unless eligible for the 5% Deposit Scheme.
- The Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase with a 5% deposit without LMI.
- Special programs like the Salute Account offer rewards for ADF members.
- Ensure compliance with the Defence Home Ownership Assistance Scheme for applicable loans.
Defence Bank Home Loan Pros & Cons
Our expert take on whether Defence Bank is right for you
Pros
- +Competitive rates below market average
- +No application or establishment fees
- +$2,000 cashback for refinancing over $250,000 (valid until December 31, 2026)
- +100% mortgage offset account
- +Free and unlimited redraws
Cons
- –Limited LMI waiver programs
- –Restrictions on iSaver accounts
Best For
- ADF members looking for special rewards
- Borrowers seeking no application fees
- Homeowners wanting competitive rates below market average
- Customers interested in cashback offers
- Individuals preferring a community-owned bank
Not Ideal For
- Borrowers needing multiple iSaver accounts
- Customers looking for extensive LMI waiver programs
Bheja Verdict: Defence Bank offers competitive home loan rates below the market average, making it a strong choice for ADF members and those seeking community-focused banking.
Expert Secrets (Why Use Us?)
Insider knowledge about Defence Bank that most borrowers don't know
LMI Cost Examples
Fee Waivers
Offset Benefits
Admin & Logistics (The Help Desk)
Everything you need to manage your loan
Application Process
4 StepsProcessing Times
Pro Tips
- Request the discharge at least two weeks before your planned settlement date to avoid delays.
- Ensure all fees are paid upfront to prevent any processing hold-ups.
- Contact Defence Bank's discharge team at 1800 033 139 if you have any questions or need assistance.
- Check with your solicitor for any additional fees that might apply during the discharge process.
- Keep a record of all communications and confirmations from Defence Bank.
Defence Bank Mortgage Calculator
Estimate your repayments using current Defence Bank home loan rates
Over 30 years, borrowing $480,000 at 6.19%, total cost including interest and known fees could be around $1,057,475. Estimated monthly repayment: $2,936.74.
Known fees in this estimate
- Discharge fee
- $250
- Total ongoing fees (30 yrs)
- $0
How is this calculated?
Estimated total cost includes the amount borrowed, interest over the full loan term, and any upfront, ongoing, and discharge fees published by the lender. It does not include stamp duty, LMI, or savings from an offset account.
The revert rate is the rate your loan may switch to when a fixed, introductory, or interest-only period ends. Where a lender hasn't published this rate, we use an estimate.
Cost breakdown
- Amount you borrow
- $480,000
- Total interest
- $577,225
- Upfront fees
- $0
- Ongoing fees
- $0
- Discharge fee
- $250
- Estimated total cost
- $1,057,475
- These figures are estimates only. Your actual repayments and costs may differ. Confirm all details with your lender before making a decision.
- Where a lender hasn't published their revert rate (the rate that applies after a fixed, introductory, or interest-only period ends), we estimate it. Your repayments may change when this period ends.
- Split loans and offset accounts aren't included in this estimate.
- For product comparison and comparison rates, see the rates table above.
Still Unsure? Let a human handle it.
Not sure if Defence Bank is right for you? Our brokers can help you compare options.
Frequently Asked Questions
Conditional approval typically takes 5-7 business days once all necessary documents are submitted.