Australian Military Bank lending policy allows broker-originated defence home loans, with commission treatment and income assessment depending on the product and the proposed structure. Separate the broker’s remuneration agreement from the borrower’s credit assessment and any defence subsidy entitlement. A posting can affect occupancy and income without automatically creating a commission exemption.
Upfront and Trail Payments
Australian Military Bank upfront commission is calculated on the drawn amount less the offset balance in YBR Aggregation’s 2024 commission schedule. Its AMB entry separates Defence Home Ownership Assistance Scheme (DHOAS) loans from ordinary home loans.
| Product in YBR’s 2024 Schedule | Upfront, Including GST | Annual Trail, Including GST |
|---|---|---|
| DHOAS | 0.45% | 0.20% |
| Non-DHOAS | 0.66% | 0.22% |
These are the figures in YBR Aggregation’s published commission schedule. Apply the agreement covering your aggregator and settlement when estimating your receipts. The schedule also states that trail stops while the loan is in arrears.
As a hypothetical calculation using that schedule, a $600,000 draw with $50,000 in offset gives a $550,000 upfront basis. At the stated non-DHOAS rate, the gross commission is $3,630 including GST, before your aggregator deductions.
The Mortgage and Finance Association of Australia describes trail as commission on the outstanding balance excluding offset funds. For an AMB forecast, use the trail balance and calculation period defined in your remuneration agreement. Keep the approved limit separate from funds actually drawn.
Record the settlement, commission calculation period and aggregator payment cycle separately. An excluded facility contributes no commission to the forecast. An undrawn portion contributes no upfront under a drawn-balance calculation, and a payment outside the aggregator’s processing cut-off arrives in a later cycle.
Clawbacks and Loan Changes
YBR’s 2024 AMB entry records recovery of 100% of upfront in the first year and 50% in the second year. Apply the original settlement and applicable agreement when assessing an early payout.
A full discharge closes the facility. A partial repayment leaves it open with a smaller balance. Record those events separately because a lower trail payment alone does not establish that upfront must be repaid.
Use the following transaction record before recognising another commission payment.
| Loan Change | Record for the Commission Decision |
|---|---|
| External refinance away from AMB | Original settlement, payout amount and loan age under the existing recovery terms |
| External refinance into AMB | New settlement and eligible net advance, plus the outgoing lender’s separate clawback exposure |
| Internal refinance | Old and replacement account numbers, retained debt and the agreement’s treatment of replacement business |
| Top-up | Additional funds, broker involvement and the amount eligible for new commission |
| Split or product switch | Original loan identity, balances transferred and any genuinely new advance |
| Partial repayment | Amount repaid, balance remaining and the clause governing partial recoveries |
Keep the original clawback period attached to the original commission record. A new account number alone is insufficient evidence of a new payment entitlement or a reset period. Retain a separate record for any additional commission on a top-up.
Treat a posting-related sale or payout under the applicable recovery terms unless the bank grants a written exception. A DHOAS occupancy concession concerns subsidy entitlement. It does not establish a broker commission waiver.
Defence Income and Allowances
Australian Military Bank’s broker guide distinguishes permanent Australian Defence Force (ADF) allowances from amounts that depend on a particular duty or posting. Record base salary separately so a deployment payment does not become part of the permanent salary figure.
The guide allows 100% of qualifying permanent service and uniform allowances expected to continue for the loan term. It also identifies specified ADF allowances accepted with at least 12 months of confirmed payment. Recruit instructor and training sustainment allowances require evidence of a training establishment at the posting location.
Use the most recent payslip and employer confirmation of ongoing entitlement. Match each allowance’s exact name to the bank’s income category. Assess deployment and housing payments individually instead of treating every amount on an ADF payslip as permanent income.
If an allowance ends before the loan term, document its remaining duration and the income expected after it stops. Present any proposed ongoing treatment with supporting mitigations for assessor approval. A current payslip proves receipt, while the employer’s evidence explains continuity.
Residency and Posting Location
Record citizenship, residential status and posting location for every applicant before presenting the proposed loan to Australian Military Bank. Keep the partner’s circumstances separate from those of the serving member.
For an overseas posting, include the present country, expected return and where each applicant will live after settlement. Record the currency of each income source and any planned change in employment. Military employment alone does not establish the eligibility of a joint applicant or an overseas-resident household.
Apply the bank’s residential lending eligibility assessment to that applicant record. An existing bank membership or an accepted identity document answers a different question from whether the proposed mortgage meets credit policy.
Security and Loan Purpose
Match the proposed property and use of funds to the selected AMB product before applying any defence programme conditions. Identify the security address, property type and intended occupancy, then separate purchase funds from refinance or additional borrowing.
The bank’s broker material confirms that accredited intermediaries can introduce DHOAS home loans. The borrower obtains a subsidy certificate through the Department of Veterans’ Affairs (DVA). Direct entitlement questions to DVA through the official DHOAS service.
DHOAS rules restrict the loan to eligible housing purposes, including a qualifying refinance. They prohibit using the loan to buy an investment property or fund unrelated spending. A subsidy certificate and a suitable loan purpose remain separate from the bank’s credit approval and security valuation.
Posting timing affects occupancy treatment. DVA distinguishes a known relocation before occupancy from a posting received after moving in with a good-faith intention to meet the occupancy requirement. Retain the posting order and the DVA determination relevant to the borrower. A previous occupancy waiver does not carry over automatically to a new or changed loan.
For ordinary residential or investment lending, present the property under the selected product’s security rules. A defence connection does not remove restrictions on an unusual property or an unsupported loan purpose.
Documents for the Proposed Structure
Build the AMB document pack around the income and structure used in the application. The following records allow an assessor to follow a posting-sensitive file.
- Provide identity and residence evidence for each applicant, including the joint applicant’s status.
- Separate base salary and each allowance on the payslip. Add employer evidence of entitlement and duration, with posting orders where location affects payment.
- Include existing liability statements and account limits. Reconcile the refinance payout against any proposed top-up and explain the use of additional funds.
- Supply the purchase contract or refinance security details, occupancy intention and evidence supporting the property assessment.
- For a DHOAS proposal, retain the subsidy certificate and any DVA occupancy determination relevant to the structure.
- Attach the bank’s written acceptance of an income exception, together with the supporting documents it names.
When a posting changes housing costs or the partner’s employment, update the financial position used in the application. Keep the earlier and revised figures identifiable so the assessor can see the effect.
Escalating a Posting-Sensitive File
Send Australian Military Bank a specific scenario that identifies the income treatment or structure requiring a decision. Use the Australian Military Bank broker access and support guide for the support route. The lender-policy directory covers other lenders’ policy guides.
A hypothetical request could read as follows.
Two joint applicants propose an owner-occupied purchase. The serving applicant has permanent base salary and a duty allowance confirmed for another 18 months. A posting begins in six months. The partner’s employment continues remotely. We propose excluding the temporary allowance from ongoing repayment capacity. Please confirm the proposed income treatment and identify any additional evidence needed for the posting and occupancy arrangement.
If you instead seek to include the allowance beyond its confirmed duration, state that exception explicitly. Attach the employer’s explanation and show the income position after the allowance ends. Keep subsidy questions directed to DVA, separate from the bank’s credit decision.
Retain the written bank response naming the accepted income, proposed structure and conditions. Keep any commission exception in a separate written remuneration decision. Before lodging, match those responses to the actual applicants and property, and resolve any change caused by the posting.
