Your guide to comparing Defence Bank Home Loans
Defence Bank is the number-one credit union to serve members of the Australian Defence Force. However, it also serves people from the general community.
Defence Bank does not have shareholders to distribute profits to, so it can reinvest those profits to provide affordable banking solutions to its customers. Because of this, many of its loans do not require annual or monthly account-keeping fees, which helps to keep repayment amounts more affordable.
Defence Bank offers several different home loan options for its customers that include competitive interest rates and flexible payment options. Several loans are available just for Australian Defence Force members, which allows them to use the Defence Home Ownership Assistance Scheme (DHOAS) subsidies.
Compare Defence Bank Home Loans
Home loans offered by Defence Bank
DHOAS saver home loan
The DHOAS Saver home loan is only available to members of the Australian Defence Force. Through this loan, defence members are able to apply their subsidies towards the purchase of a home. Defence Bank does not charge monthly or annual maintenance fees on this type of loan.
Both fixed and variable rate options are available with this loan, and additional repayments can be made with both rate options. Unlimited free redraws are offered, and offset facilities are available. Members can also opt for a repayment hold if they have made advance payments.
DHOAS advantage home loan
The DHOAS Advantage home loan is designed only for members of the Australian Defence Force and allows members to apply their subsidies to the purchase of their home. It offers both variable and fixed interest rate options, as well as a split loan option and the ability to switch between variable and fixed rates.
There are no monthly or annual account maintenance fees required for this loan, and there is no initial application fee.
DHOAS construction home loan
The DHOAS Construction home loan option is only available for members of the Australian Defence Force who are building a home. It allows defence members to apply their subsidies towards the purchase of their home, and offers both fixed and variable rate options as well as split loan options. Members can also choose to switch between the variable and fixed home loan options.
This loan offers an interest-only repayment option during the construction phase of your loan. This can help you maintain your repayments until you are able to move into the home. There is no annual or monthly fee associated with this home loan and it does not require an application fee.
Flexi saver home loan
The Flexi Saver Home Loan is a portable home loan option that requires no upfront payments. There is also no monthly or annual account-keeping fee required for this type of loan. Free, unlimited redraws are also offered through this loan, except for interest-only repayments.
Flexi choice home loan
If you are anticipating the ability to make extra repayments on your home loan, the Flexi Choice home loan may be suitable for you. It offers variable and fixed rate options as well as split loan options. You can also opt to switch between a fixed and variable rate. Additionally, no-penalty repayments can be made with the variable rate option.
This is a portable home loan that offers free redraw options. There are no annual or monthly fees associated with this loan, but there is a one-off administrative fee.
Smart mover home loan
The Smart Mover home loan is suitable for those who want access to the equity in their home. It provides the homebuyer instant access to this equity by using the Defence Bank Visa debit card. It carries no upfront fees, and offers competitive variable interest rates.
This loan is portable and can be transferred to another property. It provides free EFTPOS transactions and allows extra payments to be made without penalty. There are no monthly fees associated with this loan, but an annual maintenance fee does apply.
Interest-only construction home loan
The Interest-Only Construction home loan option is only available to those who are building their own home. It allows you to make interest-only repayments during the period of time your home is being built. At the conclusion of the building phase of your home, the repayment amount will increase to the standard amount.
This loan option is portable and can be transferred to another property. There are no annual or monthly fees related to this loan, nor is there an application fee to pay. It only offers a variable rate and includes an unlimited redraw option.
Basic variable home loan
This home loan is suitable for first home buyers who are looking for a basic loan with competitive interest rates. The loan does not have any annual or monthly account-keeping fees associated with it, and there is also no application fee required. The Basic Variable home loan lack features, but it does have competitive rates.
How to apply for a Defence Bank home loan
If you’d like to apply for a home loan from the Defence Bank, please consult a mortgage broker.
Documents needed to apply for a Defence Bank home loan
Defence Bank will require you to provide some personal information that can help to prove your identity. This documentation is required by law and must be provided to Defence Bank before your home loan can be finalised.
- Tax File Number. Defence Bank will need to have your Tax File Number (TFN) on hand to include on the loan paperwork.
- Proof of Identification. You will be required to provide 100 points of identification.
You will also need to provide several pieces of documentation pertaining to the purchase of your home. Each home loan may require different documentation, so be sure to talk with your agent to see what your specific requirements are. However, here is a list of the most common property documentation required:
- Property valuation. When you obtain a loan from the bank, a proper assessment will need to be done on the property to determine its true value. This will ensure that the loan you are obtaining is equal to the value of the home being purchased.
- Proof of title for property. Defence Bank will need a copy of the title for the property being purchased. This will guarantee that the party selling you the property is the actual owner of the property and has the rights to sell it.
- Property sales contract. Before closing on your loan, the bank will need to have a copy of the sales contract for the property. This will provide all the details about the sale of the property.
Although you will provide Defence Bank with most of your financial information at the initial stages of the application, you will also need to provide proof of that information. Once your loan has been approved, the bank will ask for detailed information about your earnings, assets and expenses. You’ll need to provide:
- Proof of earnings. You must provide documentation that can prove your annual earnings. If you earn a wage, copies of your payslips should be adequate. If you are self-employed, however, you may need to submit copies of your tax returns.
- Documentation for outstanding debt. If you have any outstanding debt that you listed on your home loan application, you will need to provide Defence Bank with a copy of the latest statement for those accounts.
- Proof of assets. Defence Bank will need documents that can prove the value of any additional assets or income that you disclosed on your initial home loan application.
Defence Bank offers a number of viable home loan options, particularly if you’re a member of the Australian Defence Force. However, make sure to seek expert advice and compare your options to make sure you find the best loan available for your needs.