- Company
- Defence Bank Ltd
- Licence
- ACL 234582
- Type
- Customer-owned bank (mutual) - ADF community
- Founded
- 1975
- Headquarters
- Melbourne
- Products
- Variable and fixed home loans, Investor home loans, Personal loans, Car loans, Transaction and savings accounts
Defence Bank is an Australian customer-owned bank serving Australian Defence Force members (serving and former), Department of Defence employees, and their families. The bank writes home loans, personal loans, car loans, transaction accounts and savings products. As a mutual, profits are returned to members through competitive rates and member services.
Defence Bank's mutual position
Defence Bank has been operating since 1975 (originally as Defence Force Credit Union), serving the Australian Defence Force community. The bank is one of the larger profession-specific mutual banks in Australia and has grown to serve a wide ADF-connected membership base. As a customer-owned bank, profits flow back into competitive rates and member services rather than to external shareholders.
For ADF members, Defence Bank typically publishes home loan rates that are competitive with Big 4 packaged products and frequently sharper for clean-credit owner-occupier files. The mutual structure means no annual package fee on most variants.
Who is eligible
Defence Bank membership is open to: serving and former ADF members across Army, Navy and Air Force; Department of Defence civilian employees; family members of eligible members (spouse, parents, children); and certain related defence community groups.
The eligibility framework is one of the broader mutual eligibility structures in the Australian banking market, covering not just current serving members but also veterans, defence-civilian employees and family. For ADF-connected borrowers, the eligibility is generally not a barrier.
Home loan and personal loan range
Defence Bank's home loan products cover variable rate, fixed (1 to 5 years), investor variable and fixed, and a discounted package product. The bank participates in the federal First Home Guarantee scheme and the Defence Home Ownership Assistance Scheme (DHOAS), which provides specific support for serving ADF members purchasing a home.
Personal loan products cover unsecured fixed and variable, secured car loans, and a dedicated ADF Defence Service Loan structured for the specific needs of serving members. The lending policy includes some ADF-specific accommodations (e.g. allowing for deployment-related income disruption in serviceability assessment).
DHOAS interaction
The Defence Home Ownership Assistance Scheme (DHOAS) is a federal scheme providing a subsidy on home loan interest for serving and recently-discharged ADF members. Defence Bank is the primary administrator of DHOAS, and the scheme integrates with the bank's home loan products.
For eligible serving members, the DHOAS subsidy can materially reduce the effective interest rate on a home loan. The subsidy applies to specific loan structures and amounts; the bank walks through eligibility and integration at the application stage.
The honest pros and cons
- Customer-owned mutual structure with profits returned to members
- Eligibility covers serving ADF, veterans, Defence civilian employees and family
- Competitive home loan rates against Big 4 packaged products
- DHOAS integration provides material subsidy for eligible serving members
- Eligibility limited to ADF community and family
- Branch network smaller than Big 4
- Conservative credit policy on complex files
- Smaller national brand recognition
Frequently asked questions
Who can join Defence Bank?
Defence Bank membership is open to serving and former ADF members (Army, Navy, Air Force), Department of Defence civilian employees, and immediate family members of eligible members.
Is Defence Bank legitimate?
Yes. Defence Bank Ltd holds Australian Credit Licence 234582 and has been operating since 1975. It is an ADI under APRA supervision; customer deposits are protected by the federal Financial Claims Scheme up to $250,000 per account holder.
What is the Defence Bank home loan rate?
Defence Bank publishes current variable and fixed home loan rates on its home loans page. For eligible members, the rates are typically sharper than Big 4 packaged equivalents for clean-credit owner-occupier P&I files. Additional DHOAS subsidy may apply for eligible serving members.
What is DHOAS?
The Defence Home Ownership Assistance Scheme is a federal scheme providing a subsidy on home loan interest for eligible serving and recently-discharged ADF members. Defence Bank is the primary administrator of DHOAS, and the scheme integrates with the bank's home loan products.
Does Defence Bank do first home buyer loans?
Yes. Defence Bank participates in the federal First Home Guarantee scheme and writes home loans for first home buyers using the FHG no-LMI mechanic. For eligible serving ADF members, the FHG can stack with the DHOAS subsidy for further benefit.