Australian Military Bank Value Home Loan

Features

When it comes to features, the Australian Military Bank Value Home Loan has plenty.

This variable interest rate home loan gives you the flexibility to make unlimited additional repayments which is a great way to reduce the term of your loan and save interest.

If you’ve got a stash of savings, you can use the 100 per cent offset facility to reduce the interest payable on your loan and any additional repayments you do make can be accessed using the redraw facility.

Weekly, fortnightly or monthly repayments let you manage your money better and coordinate with your salary schedule.

For those with a smaller deposit, the Australian Military Bank Value Home Loan will lend you up to 95 per cent of the purchase price. However, to avoid paying lenders mortgage insurance you will need to put down a 20 per cent deposit.

This loan has a maximum term of 30 years and also gives you the flexibility of opting for interest-only repayments for a period of time.

If you’re looking for more certainty in your repayments, this loan does give you the choice to split your loan between a fixed and variable interest rate. 

Who is the Australian Military Bank Value Home Loan good for?

The Australian Military Bank Value Home Loan is a fuss-free mortgage option. Refinancers might benefit from the deposit discount, while first home buyers or those with a small deposit might be lured by the five percent deposit threshold.

The interest-only option and choice of repayment frequency may be appealing for borrowers looking for flexibility, however this loan is not available to investors.

Review - What RateCity says

If you’re disciplined with your finances, there are some features in this loan which can potentially shave thousands of dollars off your loan - specifically, the 100 percent offset facility and extra repayment option. Having said that, it’s worth noting that any savings made using the offset account might be negated by the moderately high interest rate and high upfront fees.

This bank has a limited branch network across major defence bases in Australia, making the option of face-to-face customer support limited. There is an extended network of mobile bankers, a customer support line and unlimited online banking.

Fees aside, the Value Home Loan is a fairly straightforward product with enough bells and whistles to keep your loan flexible.

Australian Military Bank Value Home Loan Options

The Australian Military Bank Value Home Loan gives you the flexibility of a variable interest rate and a range of features like a 100 per cent offset account and redraw facility.

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Variable Rates from

3.77%

Advertised rate

3.81%

Comparison rate
Pros
  • No ongoing loan fees.
  • 100 percent offset account and redraw facility.
  • Additional repayments allowed.
Cons
  • High upfront fees.
  • Limited branch network.
  • Rate discount for larger deposits.
Eligibility

Must be an owner-occupier.

Must be an Australian citizen.

Provide proof of income.

Provide list of assets and liabilities.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
Fees
  • Estimated upfront fees: $750.00
  • Discharge fees: $300
  • Ongoing fees: $0

The Australian Military Bank Value Home Loan has higher than average upfront fees. While there are no monthly or annual fees, there is a discharge fee for when the loan ends.

The redraw facility attracts a small fee as well as a minimum withdrawal amount.

While the variable interest is on the high side, the Australian Military Bank does offer rate discounts for higher deposits.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
  • Loan allows split interest rate
About Australian Military Bank

The Australian Military Bank has been servicing the Australian Defence Forces for over 50 years. Since merging with the Army Defence (NSW) Credit Union, the bank recently changes its name to the Australian Military Bank.

With branches at major defence bases in Australia, it’s affiliation with National Australia Bank and rediATM gives its members access to an extended ATM network.

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