NAB Defence Force Home Loan

Rates and fees last updated on

A Defence Force home loan with 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 Home Loan allows you to choose from a fixed rate, variable rate or a NAB Choice package to finance a residential property.

Interest Rate Max Insured LVR Max LVR
Offset excluded
4.32% p.a.
Comparison Rate
4.41% p.a.
95% 80%
Offset included
4.52% p.a.
Comparison Rate
4.61% p.a.
95% 80%
2 Year Fixed Rate
3.88% p.a.
Comparison Rate
4.50% p.a.
95% 80%
1 Year Fixed Rate
3.89% p.a.
Comparison Rate
4.55% p.a.
95% 80%
3 Year Fixed Rate
3.94% p.a.
Comparison Rate
4.46% p.a.
95% 80%
4 Year Fixed Rate
4.59% p.a.
Comparison Rate
4.64% p.a.
95% 80%
5 Year Fixed Rate
4.59% p.a.
Comparison Rate
4.64% p.a.
95% 80%
Product NameNAB Defence Force Home Loan
Interest Rate TypeVariable or Fixed
Comp Rate^ (p.a.)
Minimum Loan Amount$20,000
Maximum Loan Amount$10,000,000
Maximum LVR80%
Maximum Insured LVR95%
Mortgage Offset AccountYes
Mortgage 100% OffsetYes
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$395 p.a.
Settlement Fee$395
Discharge Fee$150


  • Interest rate discounts
  • Range of variable and fixed rates
  • Package discounts also available
  • $0 application fees
  • Construction options available


  • Monthly fee of $395
  • 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 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. The variable rate loan is also available for construction. Eligible Defence Force members will need to reside in the home for a minimum of 12 months to continue receiving subsidies.

Features of the 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:

  • Loan options. Borrowers can choose from a fixed rate, variable rate or NAB Choice Package loan.
  • Offset accounts. The variable rate Defence Force Home Loans feature 100% offset accounts to help minimise interest.
  • Redraw facility. You can get access to additional repayments you've made on these loans, although there is a minimum of $2,000. This is only offered on variable rate home loans.
  • Flexible repayments. You can make repayments every week, fortnight or month and can make additional repayments, which are 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.
  • Flexibility. You have the choice to fix your interest rate for 1-5 years or 10 years.
  • Combine your options. You can split your loan into fixed and variable portions to help safeguard your finances while taking advantage of low interest rates
  • Discounted variable rate. You can enjoy 0.80% p.a. off the standard variable rate.


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

  • Lenders mortgage insurance (LMI). If you borrow more than 80% of the property value you'll need to pay LMI premiums. The amount of which will depend on the property price, location and more.
  • Application fees: $0.  If you opt for the variable or fixed Defence Force Home Loan, you'll pay this fee, which also includes the valuation and loan establishment costs.
  • Monthly fee. $8 per month. If you don't opt for the Choice Package, you'll pay a monthly fee of $8, totalling $96 a year. This is waived if you take out a Choice Package.
  • Annual fee. $395 per year. If you opt for the Choice Package you'll pay an annual fee in return for the discounts you receive.

Subsidy tiers

The longer you serve in the Defence Force, the more entitlements you'll receive and the longer you’ll be able to receive assistance. The subsidies are based on a tiered system, which is outlined in the table below. Please note the figures below should only be used as a guide, and the actual monthly subsidy amounts can fluctuate each month based on interest rate changes.

Subsidy tier

Minimum permanent service

Minimum Reserve service

Subsidised loan amount

Maximum monthly subsidy


4 years

8 years


up to $223


8 years

12 years


Up to $335


12 years

16 years


Up to $447

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 the following:

  • Loan use - loans must be secured by the subsidised property and must only be used for buying property or refinancing.
  • Refinancing - If you are an existing homeowner with an outstanding mortgage you are able to refinance, but you need to check your eligibility.
  • Redraws - Redraws are allowed as long as the original loan amount does not increase.
  • Transferring entitlement - You can transfer your home loan entitlement to another property but you need to occupy the home for 12 months.
  • Minimum occupancy - You need to occupy the home for at least 12 months.
  • Posting - You are not eligible if you will be posted within a year, but you are entitled to keep your loan if you receive a posting and are required to move before the minimum 12 month occupancy is completed.
  • Moving - If you move before the minimum occupancy period of 12 months is met then your payments will be cancelled.
  • Closing the loan - If you close your Defence Force Home Loan and take out another loan you will need to reapply for a Subsidy Certificate and have your payments reassessed.
  • Occupancy exemption - The minimum 12 month occupancy is waived only in certain circumstances.
  • Construction time frame - If you are accessing the loan for construction purposes you have two years to complete the construction process and occupy the home.
  • Occupancy - After construction is complete you still need to meet the minimum occupancy requirement of 12 months.
  • Minimum interest - You need to hold, either alone or with your partner, at least a 50% interest in the property.
  • Business properties - You cannot use the subsidy for a property that is used primarily for business purposes (ie. something generating an income or profit).
  • 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.

NAB Defence Force Home Loan Interest Rate History vs RBA Cash Rate Graph

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This page was last modified on 28 March 2017 at 1:51pm.

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12 Responses to NAB Defence Force Home Loan

  1. Default Gravatar
    Dean | April 29, 2017

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

    • Staff
      Anndy | May 1, 2017

      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.


  2. Default Gravatar
    Tom | September 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.


    • Staff
      May | September 29, 2016

      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.


  3. Default Gravatar
    Nav | April 15, 2016

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

    • Staff
      Belinda | April 18, 2016

      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,

  4. Default Gravatar
    Lynne | October 25, 2015

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

    • Staff
      Belinda | October 26, 2015

      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.


  5. Default Gravatar
    Adam | June 3, 2014

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

    • Staff
      Marc | June 5, 2014

      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.


  6. Default Gravatar
    Noella | May 20, 2014

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

    • Staff
      Shirley | May 21, 2014

      Hi Noella,

      Thanks for your question.

      Generally home loans have one offset account available.


NAB Defence Force Home Loan

  • Interest Rate


  • Comparison Rate


  • App Fee / Annual Service Fee

    $0 / $395

  • Max LVR


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