ADF Housing: Investment Property Success Story #26
This ADF Housing Investment Property Success Story is about forging a wealth creation pathway that will be difficult to match by anyone!
DHOAS
Defence Home OWNERSHIP ASSISTANCE SCHEME
What is DHOAS?
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. To be eligible, you must have:
- Served on or after 1 July 2008
- Completed a qualifying period of service and accrued sufficient entitlement
- Served in the ADF within the last two years
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!
If you're eligible, taking advantage of this scheme is one of the best things you can do for your property investment. Talk to our property investment coaches today and learn how you can make the most of your ADF housing benefits.
DHOAS Subsidy and Defence Home Loan Conditions
| Subsidy Tier | Minimum Permanent Service | Minimum Reserve Service | Subsidised Loan Amount | Maximum Monthly Subsidy* |
|---|---|---|---|---|
1 | 4 years | 8 years | $310,937 | Up to $187 |
2 | 8 years | 12 years | $466,407 | Up to $281 |
3 | 12 years | 16 years | $621,874 | Up to $375 |
As of 1 July 2021, the AHP is $777,343 This figure is used to determine the 2021-22 subsidy tier values. *Estimated monthly subsidy values based on the July 2021 median interest rate. These monthly subsidy values fluctuate based on changes in the median interest rate.
You can see that the bad news is that you have to wait four years of service before you gain access to DHOAS. We recommend that you wait until you have done at least eight years of service (to achieve tier 2) before you pull the trigger. This is for either of two reasons:
1- So you can have a higher monthly subsidy (about an extra $100 per month stays in your pocket) or;
2- So you can use four years of your 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.
Lump Sum Advance Option
Under certain circumstances, you may be eligible to have your subsidy paid out as a lump sum. If you have accrued sufficient entitlement you can convert up to four years of your service into a lump sum payment.
This equates to $187 per month x y years [48 months] = $8,976.
This can be especially useful if you're looking to fast track your housing investment, but will only be applicable in some situations.
Pro Tip for couples
If you have both served more than 8 years, you can get the subsidy for a loan up to $932,812 (2 x $466,406) and received a monthly allowance of $562 (2 x $281). Now that is a massive chunk off your monthly repayments!!
DHOAS Home Loan Providers
Defence and DHOAS loans are different from typical home loans in that you must apply for one through one of three approved providers.
There are a range of DHOAS Loans available from the three providers, making it easy to find one that suits your needs. Additionally, many defence home loans have low rates and are quite flexible. If you're not sure which one is right for your needs, Axon's property coaches can help you choose.
Bringing It All Together
Axon Property Group is dedicated to helping ADF members and their families get started in property investing. We take you from absolute zero to expert, giving you the knowledge and tools to succeed in property investing.
We can help you understand your defence home ownership assistance scheme loan entitlements and give you the best possible start with a defence home loan.
Start by watching our FREE ADF PROPERTY TRAINING!
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ADF Housing: Investment Property Success Story #25
This ADF Housing Investment Property Success Story is about forging a wealth creation pathway that will be difficult to match by anyone!
Meet The Axon Team – Noah
As Marketing Manager, Noah’s role here at Axon is to ensure that all of our amazing educational content reaches all our prospective clients! That means she’s responsible for the day-to-day management of all of our social media channels, newsletters, live streams and events, She’s been in the business for 10 years now, having previously worked in 3 of the major advertising agencies in South America.
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HEAR IT FROM OUR CLIENTS
Success Stories
"Every aspect of Axon Property Group's service was incredible, from the quality and depth of education to the connections with brokers, builders and real estate agents and the ongoing support we have even as we complete our property."
"From a first-hand experience, I guarantee you'll feel like a part of the family. Not only will Axon Property Group bend over backwards for you, you'll make genuine friends in the meantime with a bunch of ex-serving Veterans. Fantastic!"
"Axon Property Group helped us achieve the start of our dream and everything else is now icing on the cake, but unlike anytime before, we are now in the position to ice that cake and we would not be where we are without them."
"Axon Property Group has pioneered a fantastic client-orientated property investment experience. This is something you will not get from a buyers agent or any other sector of the property industry.
Would highly recommend."
"The team at Axon Property Group are amazing!
This was our 3rd investment property but 1st through Axon, it was by far our easiest investment/build/rent process. They went above and beyond for us!"
"Axon Property Group has been on point every step of the way. Live walk through of the new facilities in my investment region. My purchase has been done from interstate and at times internationally, but the team made me feel like I was next door. Thanks Axon, I’ll be back for round two ASAP."
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