NAB Defence Force Fixed Rate Home Loan

A Defence Force home loan with a fixed rate and the backing of one of the big four banks

NAB has been providing home loan options to cater to those benefiting from the Defence Home Owner Scheme since 1991, and gives eligible Defence Force members flexible options when participating in the assistance scheme. The NAB Defence Force Fixed Rate Home Loan has low fees and allows for flexible repayments.

Interest Rate Max Insured LVR Max LVR
1 Year Fixed Rate
3.89% p.a.
Comparison Rate
4.48% p.a.
95% 80%
2 Year Fixed Rate
3.79% p.a.
Comparison Rate
4.42% p.a.
95% 80%
3 Year Fixed Rate
3.99% p.a.
Comparison Rate
4.42% p.a.
95% 80%
4 Year Fixed Rate
4.14% p.a.
Comparison Rate
4.43% p.a.
95% 80%
5 Year Fixed Rate
4.24% p.a.
Comparison Rate
4.45% p.a.
95% 80%
Product NameNAB Defence Force Fixed Rate Home Loan
Interest Rate TypeFixed
Comp Rate^ (p.a.)
Minimum Loan Amount$20,000
Maximum Loan Amount$10,000,000
Maximum LVR80%
Maximum Insured LVR95%
Mortgage Offset AccountNo
Mortgage 100% OffsetNo
Split Loan FacilityYes
Fixed Interest OptionYes
Loan PortableYes
Suitable for InvestmentYes
Extra RepaymentYes
Available as equity loan/line of creditNo
Repayment TypePrincipal & Interest and Interest Only Options

Application Fee$0
Lender's Legal Fee$0
Valuation Fee$0
Ongoing Fees$8 monthly ($96 p.a.)
Discharge Fee$350


  • Range of variable and fixed rates
  • $0 application fees
  • Construction options available on variable rates


  • Monthly fee of $8
  • No redraw facility or 100% offset on fixed rate loans

How does the NAB Defence Force Home Loan work?

Eligible Defence Force members can receive subsidy payments on their mortgage through the Defence Force Home Ownership Scheme by applying for the home loan with one of the three Defence-nominated providers, NAB being one of them. After you take out a home loan your subsidy will be paid directly into your home loan. The amount you borrow will be dependent on your home loan provider, and does not depend on any conditions within the scheme. The Defence Force will then subsidise a certain amount of the loan based on your eligible subsidy tier, which is outlined below.

Who is this loan suitable for?

The NAB Defence Force Fixed Rate Home Loan is available to Australian Defence Force members participating in the new Defence Home Ownership Assistance Scheme. The loan is intended to be used for people looking to buy property or refinance an existing mortgage, but cannot be used for investment purposes. Eligible Defence Force members will need to reside in the home for a minimum of 12 months to continue receiving subsidies.

Features of the NAB Defence Force Home Loan

The loan combines the benefits of saving with the Defence Home Ownership Assistance Scheme with NAB’s flexible options. Some of the features of the loan include:

  • Flexible repayments. You can make repayments every week, fortnight or month and can make additional repayments, which are unlimited on variable rate loans and limited to up to $20,000 for fixed rate home loans.
  • Maximum loan-to-value ratio. Borrowers can borrow up to 95% of the property value with this loan. Borrowing more than 80% of the property value will come with lenders mortgage insurance (LMI).
  • Choice Package. You can include your NAB Defence Force Home Loan in a Choice Package, which allows you to combine your NAB home loan, credit card and insurance policies into one package that can save you money.
  • Split options. You can split your loan into fixed and variable portions to help safeguard your finances while taking advantage of low interest rates.


The fees associated with this loan depend on the loan option you choose, but look below to see the rates that may be applicable.

  • Application fees: $0.
  • Monthly fee. $8 per month.

Eligibility criteria

The NAB Defence Force Home Loan is designed to assist current and former Australian Defence Force members and their families. You need to have served within the previous two years before applying for the Defence Home Ownership Assistance Scheme and you also need to have completed a qualifying period of service and accrued a service credit. To be eligible for this loan you need to be able to meet strict requirements regarding a number of factors which are explained in our guide to the Defence Force Home Loan Scheme.

  • Service credits - You must retain sufficient service credit to support ongoing monthly subsidy payments.
  • Service term - There's a reasonable expectation that you will continue to serve for another 12 months at least.
  • Investment properties - You cannot have bought a home, to live in or as an investment, while serving.
  • Max credits - A maximum of 48 months service credits may be exchanged for a lump sum at the tier 1 level.
  • Eligibility - You are not entitled to a lump sum if you bought a residential property before you were given the Subsidy Certificate that is used as a basis for the lump sum request.

How to apply

To apply for a NAB Defence Force Home Loan, you need to take the following steps:

  • Qualify and accrue service credit
  • Apply for a Subsidy Certificate. This certificate takes about five business days to process.
  • Take your Subsidy Certificate to NAB and decide on a loan option that suits your needs.
  • When you apply with NAB you will need to provide ID, financial information including debts, assets and income, residential status and your Subsidy Certificate.
  • After your home loan is settled and drawn, NAB will advise the Defence Force of the home loan balance and you need to submit a Subsidy Authorisation Request Form.
  • The Defence Force Home Owner Assistance Scheme will then calculate your subsidy and lump sum payments if applicable and you will then receive a letter with the payment details.
  • You will then start receiving the subsidy amount directly into your home loan each month.
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14 Responses

  1. Default Gravatar
    DarrenSeptember 9, 2018

    What’s the minimum deposit required? Can the application be made online?

    • finder Customer Care
      JeniSeptember 9, 2018Staff

      Hi Darren,

      Thank you for getting in touch with finder.

      The minimum deposit is 5% of the property’s purchasing price for principal & interest owner occupied home loans.

      Currently, you may send your enquiry online on NAB’s official page. Once you completely fill up the form on the said enquiry page, they will then get back to you to discuss your query or application. They also recommend that you speak to their lending expert or a mortgage broker regarding your home loan application.

      I hope this helps.

      Please feel free to reach out to us if you have any other enquiries.

      Thank you and have a wonderful day!


  2. Default Gravatar
    DeanApril 29, 2017

    I served 7.5 years, & was eligible when westpac had it but never used it. How will I go now?

    • finder Customer Care
      LouMay 1, 2017Staff

      Hi Dean,

      Thanks for your question.

      Kindly note that this home loan is designed to assist current and former Australian Defence Force members and their families. You need to have served within the previous two years before applying for the Defence Home Ownership Assistance Scheme and you also need to have completed a qualifying period of service and accrued a service credit.

      Other eligibility criteria apply. You can check our guide above on how to apply for this loan.

      When you are ready, and after checking the details of this home loan, including its terms and conditions, you can proceed with your application by clicking the ‘go to site’ button above.


  3. Default Gravatar
    TomSeptember 27, 2016

    Hi, I was wondering if the NAB defence loan, when used as a construction loan, allows redraws? I ask this because I would like to apply on my first subsidy cert for the lump sum, redraw the amount into the offset account, so I can have the lump sum working against the interest from day one. This will allow the monthly dhoas amount to be calculated on the largest amount possible once the final subsidy cert is submitted.


    • finder Customer Care
      MaySeptember 29, 2016Staff

      Hi Tom,

      Thank you for contacting we are a financial comparison website and general information service we are not mortgage experts and don’t offer any of the products or services on our website.

      If you have chosen the “variable rate” for your NAB Defence Force Home Loan, then the redraw facility will be allowed for this loan. You can get access to additional repayments you’ve made on your loan which is a minimum of $2,000. Otherwise, if you have selected the “fixed rate”, then the redraw feature may not be allowed.


  4. Default Gravatar
    NavApril 15, 2016

    How much is the redraw fee? I couldn’t find it in the NAB website. Thanks.

    • finder Customer Care
      BelindaApril 18, 2016Staff

      Hi Nav,

      Thanks for getting in touch.

      I can confirm that there is no redraw fee with the NAB Defence Force Home Loan.

      Kind regards,

  5. Default Gravatar
    LynneOctober 25, 2015

    Can a family guarantee ( securing the deposit shortfall) be used for a portion of the defence home loan? Thank you

    • finder Customer Care
      BelindaOctober 26, 2015Staff

      Hi Lynne,

      Thanks for your enquiry.

      For the NAB Defence Force Home Loan, I can confirm that you can take out a family guarantee to complete the deposit.

      However, keep in mind that if the family who is willing to act as guarantor for the home loan has a home loan with a different financial institution, they will need to refinance it to NAB. This is because NAB will need to hold the title as security for the loan.


  6. Default Gravatar
    AdamJune 3, 2014

    I noticed on NAB’s website that they state Redraw is not available on Defence Home Owners Loans?

    • finder Customer Care
      MarcJune 5, 2014Staff

      Hi Adam,
      thanks for the question.

      We spoke to NAB and they confirmed that the redraw facility is available on this loan for variable interest schemes.


  7. Default Gravatar
    NoellaMay 20, 2014

    How many offset accounts can you get with the NAB Defence force home loan?

    • finder Customer Care
      ShirleyMay 21, 2014Staff

      Hi Noella,

      Thanks for your question.

      Generally home loans have one offset account available.


NAB Defence Force Fixed Rate Home Loan

  • Interest Rate


  • Comparison Rate


  • App Fee / Annual Service Fee

    $0 / $8

  • Max LVR


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