dhoas

HOW MUCH DHOAS AM I ENTITLED TO?

The Defence Home Ownership Assistance Scheme (DHOAS) is a subsidy and home loan scheme available for current and former Australian Defence Force members. It is designed to assist ADF members and their families in repaying their defence home loan and achieve homeownership easier.

The Australian Government has announced a $46.2 million expansion of the Defence Home Ownership Assistance Scheme, aiming to improve access to home ownership for eligible defence personnel earlier in their careers. 

The changes will allow veterans who served on or after 1 July 2008 to access the scheme at any stage after they have left the service. 

From 1 January 2023, the eligibility criteria for the scheme for each subsidy tier will be expanded by:

-Halving the minimum service required for access by current ADF members from four to two years for permanent service, and from eight to four years for Reserve service.

-Removing the access cap altogether for veterans who have left the service (previously five years).

To be eligible, you must have:

  • Served on or after 1 July 2008
  • Completed a qualifying period of service anc accrued sufficient entitlement

How much you’re entitled to is calculated as a percentage of the average house price, and split into three tiers based on service length. These are:

  • 40% of the AHP at Tier 1
  • 60% of the AHP at Tier 2
  • 80% of the AHP at Tier 3 – maximum benefit!

Basically, the longer you’ve been serving with the ADF, the higher the maximum subsidy on offer is. Property Coach Robbie runs through the most relevant and up to date information regarding the subsidy and the tiers:

Subsidy Tiers for 2022-23

Subsidy Tier Minimum Permanent Service Minimum Reserve Service Subsidised Loan Amount Maximum Monthly Subsidy*
1
2 years
4 years
$402,159
Up to $514
2
4 years
8 years
$603,238
Up to $771
3
8 years
12 years
$804,318
Up to $1,029

As of 1 July 2022, the AHP is $1,005,327. This figure is used to determine the 2022-23 subsidy tier values. *Estimated monthly subsidy values based on the April 2023 median interest rate. These monthly subsidy values fluctuate based on changes in the median interest rate.

You can see that you have to wait two years of service before you gain access to DHOAS. Most people find it beneficial to wait until they have done at least four to six years of service before pulling the trigger. This is for either of two reasons:

1- So you can have a higher monthly subsidy (about an extra $260 per month stays in your pocket) or;
2- So you can use four years of service in a lump sum – very useful to top up your cash buffer after you have purchased your home.

The real kicker is the main condition of receipt – you and/or your family must occupy the home for at least 12 months and you will need to be occupying the home and holding a valid subsidy certificate before your subsidy payments will commence.

How to use your DHOAS?

Understanding what they are is just one piece of the puzzle. Understanding how to use them, with special focus on when and where you use them, is key to using them successfully. There are some restrictions, and some tips that you definitely need to know before you pull the trigger.

Have you watched our ADF Training yet? Property Coach Robbie Turner shows viewers case studies on exactly what happens when you get it wrong, and how and when to use them to get it right.

Complete Our Free ADF Training!

HOW TO BE A PROPERTY OWNER WITH YOUR ADF HOUSING ENTITLEMENTS: DHOAS, HPAS & HPSEA

In this FREE training you are going to find out:

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