diff --git a/doc/source/configuration.rst b/doc/source/configuration.rst
index 32dfd6b95..88f4fa737 100644
--- a/doc/source/configuration.rst
+++ b/doc/source/configuration.rst
@@ -298,11 +298,6 @@ definitions unless they specify a different Default object with the
 
 Will set the job description for every job created.
 
-Template variables can also be used to specify an appropriate set of
-defaults for each generated job:
-
-.. literalinclude::  /../../tests/yamlparser/fixtures/templates003.yaml
-
 .. _advanced:
 
 Advanced
diff --git a/jenkins_jobs/builder.py b/jenkins_jobs/builder.py
index a6d2bfa36..f21d3d3cc 100644
--- a/jenkins_jobs/builder.py
+++ b/jenkins_jobs/builder.py
@@ -172,7 +172,10 @@ class YamlParser(object):
         return self.data.get('job-group', {}).get(name, None)
 
     def getJobTemplate(self, name):
-        return self.data.get('job-template', {}).get(name, None)
+        job = self.data.get('job-template', {}).get(name, None)
+        if not job:
+            return job
+        return self.applyDefaults(job)
 
     def applyDefaults(self, data):
         whichdefaults = data.get('defaults', 'global')
@@ -278,7 +281,7 @@ class YamlParser(object):
                     expanded_values[k] = v
 
             params.update(expanded_values)
-            expanded = self.applyDefaults(deep_format(template, params))
+            expanded = deep_format(template, params)
 
             # Keep track of the resulting expansions to avoid
             # regenerating the exact same job.  Whenever a project has
diff --git a/tests/yamlparser/fixtures/templates003.xml b/tests/yamlparser/fixtures/templates003.xml
deleted file mode 100644
index 9d22458f4..000000000
--- a/tests/yamlparser/fixtures/templates003.xml
+++ /dev/null
@@ -1,40 +0,0 @@
-<?xml version="1.0" encoding="utf-8"?>
-<project>
-  <actions/>
-  <description>&lt;!-- Managed by Jenkins Job Builder --&gt;</description>
-  <keepDependencies>false</keepDependencies>
-  <disabled>false</disabled>
-  <blockBuildWhenDownstreamBuilding>false</blockBuildWhenDownstreamBuilding>
-  <blockBuildWhenUpstreamBuilding>true</blockBuildWhenUpstreamBuilding>
-  <concurrentBuild>false</concurrentBuild>
-  <canRoam>true</canRoam>
-  <properties/>
-  <scm class="hudson.scm.NullSCM"/>
-  <builders/>
-  <publishers/>
-  <buildWrappers>
-    <hudson.plugins.timestamper.TimestamperBuildWrapper/>
-    <hudson.plugins.ws__cleanup.PreBuildCleanup plugin="ws-cleanup@0.14">
-      <deleteDirs>false</deleteDirs>
-    </hudson.plugins.ws__cleanup.PreBuildCleanup>
-  </buildWrappers>
-</project>
-<BLANKLINE>
-<?xml version="1.0" encoding="utf-8"?>
-<project>
-  <actions/>
-  <description>&lt;!-- Managed by Jenkins Job Builder --&gt;</description>
-  <keepDependencies>false</keepDependencies>
-  <disabled>false</disabled>
-  <blockBuildWhenDownstreamBuilding>false</blockBuildWhenDownstreamBuilding>
-  <blockBuildWhenUpstreamBuilding>false</blockBuildWhenUpstreamBuilding>
-  <concurrentBuild>false</concurrentBuild>
-  <canRoam>true</canRoam>
-  <properties/>
-  <scm class="hudson.scm.NullSCM"/>
-  <builders/>
-  <publishers/>
-  <buildWrappers>
-    <hudson.plugins.timestamper.TimestamperBuildWrapper/>
-  </buildWrappers>
-</project>
diff --git a/tests/yamlparser/fixtures/templates003.yaml b/tests/yamlparser/fixtures/templates003.yaml
deleted file mode 100644
index e160d8a80..000000000
--- a/tests/yamlparser/fixtures/templates003.yaml
+++ /dev/null
@@ -1,29 +0,0 @@
-- defaults:
-    name: Foo
-    disabled: false
-    block-downstream: false
-    block-upstream: false
-    wrappers:
-      - timestamps
-
-- defaults:
-    name: Bar
-    disabled: false
-    block-downstream: false
-    block-upstream: true
-    wrappers:
-      - timestamps
-      - workspace-cleanup
-
-- job-template:
-    name: '{component}-Test'
-    project-type: freestyle
-    defaults: '{component}'
-
-- project:
-    name: Test-project
-    component:
-      - Foo
-      - Bar
-    jobs:
-      - '{component}-Test'