Defence Bank Home Loans: The 2026 Review

Defence Bank Limited was established in 1975 to provide tailored financial services to the Australian Defence Force community. As a community-owned institution, it operates independently of the major banks, focusing on the unique needs of Defence Force members and their families. Over the years, Defence Bank has grown its offerings to include specialised products like the Defence Home Ownership Assistance Scheme (DHOAS) and the Premier Home Loan, both of which cater specifically to its target demographic.

Today, Defence Bank positions itself as a community-oriented financial institution, offering 17 products with 48 variations through both branch networks and online platforms. Its business model emphasises personalised service and specialised financial products, setting it apart from larger, more generalised banks. The bank's competitive edge is highlighted by features such as a 100% mortgage offset account and a fee-free structure, providing significant financial benefits to its members.

Defence Bank primarily serves members of the Australian Defence Force and their families, focusing on delivering value through tailored financial solutions. With a commitment to supporting its community, the bank offers products that are designed to make home ownership more accessible for Defence personnel. This focus on community needs and specialised service makes Defence Bank a distinctive player in the Australian banking sector.

• Legal Name: Defence Bank Limited
• ABN: 57087651385
• Established: 1975
• Type: Community-owned financial institution
• Ownership: Independent

• Website: https://www.defencebank.com.au

Defence Bank offers tailored home loan solutions with features like a 100% mortgage offset account and no application fees, providing significant savings and flexibility for borrowers. These features are designed to support Defence Force members and the wider community with competitive and transparent financial options.

• 100% Mortgage Offset Account: This feature allows borrowers to reduce their interest payments by offsetting the loan balance with savings deposited in the account. It provides a practical way to minimise interest costs, enhancing overall savings.
• Free Loan Redraw: Borrowers can access extra repayments made on their loan with a minimum redraw amount of $100. This offers flexibility in managing finances, allowing access to funds when needed without additional charges.
• No Fees for Extra Repayments: Defence Bank does not charge fees for making extra repayments, enabling borrowers to pay off their loans faster and reduce interest costs over time. This feature supports financial flexibility and control.
• Redraw Facility Available Online: The online redraw facility allows borrowers to conveniently access additional repayments via the internet, providing ease of access and management of funds from anywhere.
• No Application Fees: Defence Bank waives application fees on their home loans, reducing upfront costs for borrowers. This makes the initial process more affordable, allowing borrowers to allocate funds elsewhere.
• DHOAS Home Loan: Specifically for eligible Defence Force members, this loan offers interest subsidies based on tier level and loan balance. It supports affordable home ownership for those serving in the Defence Force.
• Loan Portability: This feature allows borrowers to transfer their existing loan to a new property without refinancing. It offers convenience and cost savings for those moving homes.
• Fixed or Variable Rate Options: Borrowers can choose between fixed or variable interest rates, providing flexibility to suit individual financial strategies and preferences.
• Australia-based Contact Centre: Defence Bank provides a local contact centre, ensuring accessible and personalised customer service for all enquiries and support needs.

Defence Bank offers a transparent fee structure, focusing on providing clear information to borrowers about potential costs associated with their home loans.

• Solicitors and Other Parties Fee: Variable - These fees may be payable and are determined by solicitors or other parties actioning requests. Exact amounts are not ascertainable upfront.
• Security Discharge Administration Fee: $250 - Payable when processing a discharge of a security over real property.
• Arrears Reminder Notice Fee: $20 - Charged each time a reminder notice is sent regarding arrears on a loan.
• Ultimate Package Annual Fee: $96 (Annual) - Payable initially upon settlement and annually thereafter when the loan is linked to the Ultimate Package.
• Break Cost Fee: $0 - Applies if a fixed-rate loan is repaid early or defaults. Calculated using a specific formula.
• Rate Lock Fee: Variable - 0.15% of the fixed interest rate loan amount, charged when locking in a fixed rate.
• Default Notice Fee: $20 - Charged each time a default notice is sent regarding a loan.

Defence Bank provides home loan options tailored to Australian Defence Force members and the wider community, ensuring accessibility with specific eligibility criteria.

• Applicants must be at least 18 years old.
• Only Australian residents are eligible to apply.
• Applicants must demonstrate financial capacity to repay the loan.
• A minimum deposit of 20% is typically required, unless Lenders Mortgage Insurance is obtained.
• The loan amount must be at least $100,000.
• Applicants must meet the Defence Home Ownership Assistance Scheme conditions, if applicable.
• Loans are available for purchasing or refinancing owner-occupied homes, excluding construction projects.
• A maximum of two borrowers per application is allowed.

• Lenders Mortgage Insurance (LMI) is required if the deposit is less than 20% of the property's value.
• The Defence Home Ownership Assistance Scheme provides interest subsidies based on the member's tier level and loan balance.
• Special programs may be available for first home buyers and those with a guarantor.