News

2019 Annual General Meeting

Australian Military Bank's 60th Annual General Meeting was held Wednesday 30 October, 2019, in Sydney with over 60 members and visitors in attendance.

The meeting offered a combination of important business and reflection on the last 60 years.

A number of important motions were passed by members on the evening. These included:

• Amendment to the Bank’s Constitution to allow us to issue Mutual Capital Instruments (MCIs). Our Bank has returned to above system growth and the issuance of MCI’s could help us to grow faster for longer. For more information on the impacts of these changes, click here. 
• Amendment to the Bank’s Constitution to increase the number of directors that may be Board appointed. Bank Boards today require a range of skills and the ability to appoint directors to fill skill gaps is important.
• Reappointment of Jodie Hampshire as a director;
• Reappointment of Bruce Scott as a director.

We would like to thank all those in attendance as well as all our members for their continued support for the Bank.

Interest Rate Update - October 2019

Australian Military Bank has reviewed its interest rates and decided to reduce variable owner occupied and investment rate home loans, by 0.14% p.a. These changes take effect as follows:

• New to bank home loan rate changes effective 18th October 2019
• Existing home loan rate changes effective 30th October 2019

In addition, the Bank has reduced fixed rates for new borrowings and the following changes take effect as follows:

• 2 year fixed rate owner occupied is reduced down by 0.50% effective 18th October 2019
• 2 year fixed rate investment is reduced down by 0.45% effective 18th October 2019

Unfortunately, the RBA target cash rate does not reflect the Bank’s cost of funds as this is influenced by a variety of sources. When we change interest rates we need to balance the needs of our depositors, who will also be impacted by this low interest rate environment. Changes to deposit product rates will take effect and be reflected on our website shortly.

For any queries about this rate reduction on new or existing home loans please contact us on 1300 13 23 28 or email us at: service@australianmilitarybank.com.au

RBA drops official cash rate

Today, the RBA dropped the official cash rate by 25bps to 0.75%.

Australian Military Bank will be reviewing current market conditions and will advise our members of any changes to our rates.

Australian Military Banks’ Personal Loan product a finalist in Annual Finder Awards

Australian Military Banks’ Personal Loan products were recognised for their great value at the recent annual Finder Awards night. Australian Military Bank was a finalist in the Personal Loans (Risk Based) category – in what was an extremely competitive landscape. Products were judged on their features against a range of credit score tiers.

From startups to household names, more than 100 brands were named as finalists across 49 categories and for more information about the Finder Awards, click here.

Our Car and Personal Loans offer prospects / members tailored rates based on their credit history. We offer a range of benefits and features like the ability to make extra repayments or pay off your loan early without penalty and the option to make loan repayments straight from salary credits. Plus, with our fast online 24/7 application, if prospects/ members meet our lending criteria, they could be conditionally approved on the spot!

For more information about Personal Loan products click here.

Australian Military Bank CEO succession announcement

CEO of Australian Military Bank, John Ford, announced today that he will be stepping down at the conclusion of his contract in December 2019. Ford said “Australian Military Bank is a strong niche organisation with a fantastic membership bond and committed staff. By December I will have been at the Bank for nearly 7 years so it’s time for me to take on a new challenge.”

Australian Military Bank Chairman, John Brooks, said “we have been very fortunate to have John’s services for the last six and a half years. During this time he has lead the organisation through some major milestones including:

• growing the Bank’s assets by 80%;
• returning our membership to net positive growth;
• substantially reducing the fees charged to members;
• successful conversion to Bank status,
• renewal of key contracts with Defence and
• leading our digital journey by converting to a modern and open banking system.

Brooks said “John has been very committed to the success of Australian Military Bank and has positioned the Bank strongly for the future.”

John Ford said “it has been an absolute privilege to lead Australian Military Bank. This role has allowed me to meet and interact with the Defence community and develop an appreciation for what they do. Our Defence members do something very special for our country and we owe them the best service possible. The Banks introduction of the Military Rewards Account now ensures we give back both to our members (via payWave rebates) and systematically to key Defence Charities with over $165K donated to date.”

Ford said “the Bank has always had a compelling raison d’être and I’ve been fortunate to have the support of some great directors, staff and partner organisations. Over the last 18 months we have strategically invested in our business model by converting the bank to a modern digital platform. Our conversion has been achieved on time and on budget and the Bank is now very well placed for the future. We moved early and decisively and I look forward to my successor further leveraging our fantastic new platform”.

Chairman Brooks advised the Board would complete a comprehensive search for a replacement CEO but remained confident about the transition. “We have a strong Board and management team which will ensure continued progress against our goal of becoming a great niche bank.”

Open your bank account in under two minutes!

Prospective Australian Military Bank members can now open an account with the Bank in under two minutes following recent updates to our mobile application.

Those new to Australian Military Bank would need to simply download the Australian Military Bank mobile app from the AppStore or PlayStore and select ‘Join’ to get the ball rolling. For applicable accounts, prospective members can also order a VISA Debit Card.

Innovations such as this allow members of the Defence Community, who may be stationed across the country, to join and commence banking wherever they may be; 24/7.

Australian Military Bank CEO, John Ford, said “the ability of existing and prospective members to open accounts online real time is a critical part of our digital first strategy. We appreciate people want the convenience of being able to easily open accounts online at a time of their choosing. Our new mobile app on boarding service makes this possible in under two minutes and performs all the necessary identity checks real time.”

This latest advance comes immediately after the Bank went live in July with Comprehensive Credit Reporting (CCR). Ford said “the Bank’s ability to perform responsible lending is enhanced with the introduction of CCR for all credit products. Our technology investments over the last 18 months are delivering important benefits and today Australian Military Bank (powered by Finacle) is one of the most advanced niche banks in Australia.”

To open an account and become a member, we ask for information like full name, home address and basic contact details. Once we’ve verified a prospective members’ ID*, they can create a passcode to immediately begin banking online.

Existing members can open Everyday, Savings and Term Deposit accounts directly through online banking (Term Deposits account opening not available via the mobile app).

*Have either an Australian driver’s licence, Medicare card or Passport handy.

Australian Military Bank welcomes APRA decision

Australian Military Bank welcomes today’s announcement by the Australian Prudential Regulation Authority (APRA) that the interest rate serviceability minimum of 7.25% for residential mortgages is to be lifted with immediate effect. Click here to view APRA's official statement. 

John Ford, Australian Military Bank CEO, said “the Bank’s serviceability minimum is to be revised in line with APRA’s revised guidance which involves an interest rate buffer of at least 2.5% over the actual loan interest rate. The practical implication of this change is that prospective borrowers may realise a greater borrowing capacity. Interest rate buffers are a prudent thing to apply from a responsible lending perspective to ensure borrowers can continue to service their loan without hardship when interest rates rise. The adoption of a floating buffer rate in today’s environment will result in a lower interest rate serviceability minimum i.e. less than 7.25%”.

Yesterday the Bank announced that our DHOAS 3 Year Fixed Rate Home Loan will be reduced to 3.59% p.a. (4.27% p.a. comparison rate); with other fixed rate home loan products to follow suit. Mr Ford said “credit demand in the lead up to the Federal election was relatively subdued. The action taken by the RBA to reduce the target cash rates to new historic lows are influencing lending rates in the market place. The new regulatory settings could lead to stronger lending demand in the future”.

Interest Rate Update - July 2019

Australian Military Bank has reviewed its interest rates and decided to reduce variable rate home loans by 0.20% p.a., effective from Monday 29 July 2019.

In addition, the Bank has also decided to reduce fixed rate home loans, effective Monday 29 July 2019. Specific interest rates will be communicated shortly, however we’re happy to announce our DHOAS 3 Year Fixed Home Loan will be reduced to 3.59% p.a. (4.27% p.a. comparison rate).

Unfortunately, the RBA target cash rate does not reflect the Bank’s cost of funds as this is influenced by a variety of sources. When we change interest rates we need to balance the needs of our depositors, who will also be impacted by this low interest rate environment.

The Bank will shortly communicate changes to selected deposit products.

Interest Rate Update

The Bank has reviewed its interest rates in line with the market and decided to reduce its variable rate home loans by 0.25% p.a. for loans with a current loan to value ratio (LVR) less than or equal to 80%, effective from 4th July 2019. This rate reduction excludes Investment and Construction Home Loans.

When we change interest rates, the decision is not easy for the Bank as we need to balance the needs of our depositors, who will also be impacted by this low interest rate environment.

Frequently asked questions

What is Loan to Value Ratio (LVR)?

The LVR is the amount you are borrowing, represented as a percentage of the value of the property being used as security for the loan.

How do I know my current LVR?

Your current LVR is your loan balance calculated as a percentage against the original value of the property used as security for the loan at time of application.

Why is this rate cut not applied to all variable home loans?

When we change interest rates, the decision is not easy for the Bank as we need to balance the needs of our depositors, who will also be impacted by this low interest rate environment.

How and when will this impact deposit rate products?

Australian Military Bank will be reviewing current deposit market conditions following the recent RBA decision and will inform our members shortly of any changes to our rates.

When will these interest rate changes come into effect?

All changes to variable rate home loans with a current loan to value ratio (LVR) less than or equal to 80% effective from 4 July 2019. This rate reduction excludes investment and construction loans.

Will my repayments change?

For members with a variable rate home loan with a current loan to value ratio (LVR) less than or equal to 80% (excluding investment and construction loans), principal and interest rates will decrease by 0.25% p.a. We’ll adjust any minimum repayments from 4 July 2019. This adjustment will be reflected in Online Banking for repayments from 4 July 2019.

For members with a variable rate home loan with a current loan to value ratio (LVR) less than or equal to 80% (excluding investment and construction loans), interest-only rates will decrease by 0.25% p.a. We’ll adjust any minimum repayments from 4 July 2019. This adjustment will be reflected in Online Banking for repayments from 4 July 2019.

Is the rate reduction applicable to new or existing Home Loan interest rates?

The outlined interest rate reduction applies to existing eligible Home Loans only.

What will my interest rate be if I apply for a new Home Loan?

The applicable interest rates for all new Home Loan products can be found here.

What happens if my LVR falls below 80% after 4 July 2019?

The 0.25% p.a. discount is only applicable to eligible Home Loans with a LVR equal to or below 80% as at end of day 3 July 2019. Any LVR changes thereafter will not alter your existing Home Loan interest rate retrospectively.

I would like further information?

If you have any further questions please contact our Member Contract Centre on 1300 13 23 28, 8am-6pm AEST (Monday-Friday) and 8am-12pm AEST (Saturday).