Buying your next home

Buying your next home is a significant milestone, especially for members of the Australian Defence Force (ADF). Defence Loans is here to support you every step of the way. Our team of Home Finance & Mortgage Brokers specialises in helping ADF members access Home Loan options from banks and lenders across Australia. Whether you're considering buying a home as your first property or looking to expand your portfolio with an investment loan, our expertise ensures you have the information and support needed to make informed decisions.

Exploring the property market can be a rewarding experience, and understanding the various financial aspects involved is crucial. One of the primary considerations when buying your next home is the interest rate. Choosing between a variable interest rate and a fixed interest rate can impact your monthly repayments and overall loan cost. Our brokers can guide you through these options, helping you decide which suits your financial situation best.

Another essential factor is lenders mortgage insurance (LMI), which may be required if your loan to value ratio (LVR) is higher than 80%. This insurance protects the lender in case of default, but understanding its implications on your loan amount and overall costs is vital. Our team can explain how LMI works and explore ways to minimise its impact, possibly through interest rate discounts or other benefits.

For those buying their first home, first home owner grants (FHOG), first time home buyer programs, and first time home buyer schemes can provide significant financial assistance. These initiatives are designed to make buying a home more accessible, offering benefits such as reduced stamp duty or financial assistance towards your deposit. Our brokers ensure you are aware of all available packages and how they can be applied to your circumstances.

Applying for a home loan involves several steps, and our streamlined application process makes it simpler for ADF members. We assist with gathering necessary documents, such as bank statements, and guide you through each stage of the application process. Understanding your borrowing capacity is crucial, as it determines how much you can borrow and influences the type of property you can consider. Getting pre-approved for a home loan provides a clear picture of your budget, allowing you to focus on properties within your financial reach.

For those looking into investment loan options or applying for an investment loan application for a first investment property, Defence Loans offers tailored advice. Investment properties can be a strategic addition to your financial portfolio, providing potential rental income and long-term capital growth. Our brokers help you assess the property market and identify opportunities that align with your investment goals.

Offset accounts are another feature that can benefit ADF members when buying your next home. By linking an offset account to your home loan, you can reduce the interest payable on your loan amount, potentially saving thousands over the life of your mortgage. This feature is particularly beneficial for those with substantial savings or regular income deposits.

Buying your next home is not just about finding the right property; it's about securing the right financial package to support your purchase. With access to banks and lenders nationwide, Defence Loans ensures you have a wide range of options to choose from. Our commitment is to provide ADF members with expert guidance and comprehensive support throughout the home buying process.

As you consider buying your next home, remember that Defence Loans is dedicated to making this experience as smooth and informed as possible. Our team is ready to assist with any queries or concerns you may have about applying for a home loan, understanding investment loan options, or exploring interest rate choices. Reach out to us today to discover how we can help turn your property dreams into reality.

Step 1: Initial Consultation

Your property journey begins with a comprehensive discussion with your Defence Home Loans broker who understands the unique circumstances of ADF members. Whether you're purchasing your first home, investing, or refinancing, your broker will understand your goals, financial situation, and ADF-specific conditions such as postings or deployment income. This is when you'll discuss your borrowing capacity and explore loan options from over 2,000 products across major banks, smaller lenders, and non-bank lenders. Your broker will also walk you through interest rates, LVR, and any possible LMI considerations.

Step 2: Financial Assessment

The next step involves your broker conducting a thorough evaluation of your complete financial position, including ADF allowances and benefits that other brokers might overlook. This includes reviewing your regular income, deployment pay, allowances, bank statements, assets, liabilities, credit history, and savings patterns. Your broker will then calculate your true borrowing capacity, helping you understand how much you can afford and what your monthly repayments might look like. Your broker will also assess whether you qualify for interest rate discounts, government schemes, or ADF-specific benefits like the Defence Service Home Ownership Assistance Scheme.

Step 3: Loan Selection

Based on your financial situation and military lifestyle requirements, your broker will research and present a curated list of loan options from lenders who understand ADF circumstances. These loans will be tailored to meet your specific needs, whether you're looking for fixed rates, variable rates, or flexible options with offset accounts that work with irregular deployment income. Your broker will explain the loan-to-value ratio (LVR) and help you weigh the pros and cons of each option, ensuring you make an informed decision that accommodates potential postings and career changes.

Step 4: Pre-Approval

Getting pre-approved gives you a clear understanding of your budget and strengthens your negotiating position, especially important if you're buying where you're not currently stationed. Your broker will guide you through this process using our online technology, ensuring all necessary documents including tax returns, payslips, and allowance statements are submitted efficiently. Pre-approval gives you confidence to act quickly in any Australian property market and avoid missing out on your desired property, even if deployed overseas.

Step 5: Application Submission

Once you've selected the right loan, your broker will manage the entire application process, handling all lender communications regardless of where you're stationed. They will submit your application and ensure all required documents are provided, including ADF-specific paperwork such as proof of allowances, deployment income, or service history. Your broker will maintain regular communication with you and the lender, addressing questions and ensuring a smooth process that works around your military commitments.

Step 6: Loan Approval & Settlement

After your loan is approved, your broker will assist in reviewing the final loan agreement, ensuring all terms including interest rates, fees, and repayment schedules are clearly understood. They will help set up your repayment structure to accommodate ADF pay cycles and assist with arranging necessary insurance such as home loan protection. Once settlement is confirmed, your property ownership is complete, and you'll receive access to your new property, whether you can move in immediately or need to arrange tenants due to postings.

Step 7: Ongoing Support

Once your loan is settled, Defence Home Loans remains available for comprehensive ongoing support throughout your military career and beyond. This includes advising on managing loan repayments during deployments, exploring refinancing opportunities as circumstances change, or helping you leverage home equity for future investments. Your broker's relationship doesn't end at settlement—they'll guide you through postings, career transitions, and your entire property ownership journey as a current or former ADF member.