News

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). 

RBA drops official cash rate

Yesterday the RBA dropped the official cash rate by 25bps to 1.25%. Australian Military Bank will be reviewing current market conditions and will advise our members of any changes to our rates.

Interest rate change to Capital Guaranteed Super and Capital Guaranteed Pension products

All interest rate tiers associated to both Capital Guaranteed Super and Capital Guaranteed Pension products will be reduced by 0.25%, effective 1 May 2019.

This reduction comes off the back of ongoing costs in an extremely competitive landscape. Nevertheless, interest rates associated with these products remains extremely competitive in comparison to similar products in the marketplace.

For further details, please visit the individual product pages.

Capital Guaranteed Super
Capital Guaranteed Pension

Australian Military Bank celebrates Harmony Week

Australian Military Bank takes pride in celebrating our diverse and inclusive workforce. We welcome the many different perspectives and cultures that our staff bring to the Bank and promote 'harmony in diversity' on a daily basis. #harmonyweek

International Women's Day 2019

Happy International Women's Day! Australian Military Bank is proud to be such a diverse workplace which supports women and strives for #BalanceforBetter. #IWD2019

LAVARACK BRANCH REOPENED

Members, please note, our Lavarack Branch has reopened following a brief closure due to the extreme weather events occurring in North Queensland.

We'd like to reiterate that our thoughts are with our members, the Defence Community and the wider Townsville community who are currently impacted with the devastating floods. Big call out to all the Defence personnel and Emergency Services who are working tirelessly to ensure all are safe and sound.

 

Mobile Banking Improvements

Great news! Pending transactions are now available in Mobile Banking.

Pending transactions are listed on accounts when you 'tap and go' or transact online; this feature was live in Internet Banking and we’ve now included this feature via Mobile Banking.

This is great news as it gives more visibility to all transactional spend; all in the palm of your hand.

Once you open the transaction listing of a specific account in Mobile Banking, if there are pending transactions on the account it will note the transaction under the relevant date with the word ‘Pending’ under the transaction amount.