dhoas

DHOAS SUBSIDY TIERS

The DHOAS Scheme was designed to incentivise members to stay in the ADF – the longer you serve, the more entitlement you accrue and the longer you can receive assistance.

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:

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:

DHOAS Subsidy and Defence Home Loan Conditions

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 November 2022, the AHP is $1,005,397. 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 four years of service before you gain access to DHOAS. We recommend that you wait until you have done at least four to six years of service before you pull 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;<br>

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 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 $514 per month x 4 years [48 months] = $24,672. 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

The DHOAS Scheme was designed to incentivise members to stay in the ADF – the longer you serve, the more entitlement you accrue and the longer you can receive assistance.

If you have both served more than 4 years, you can get the subsidy for a loan up to $1,206,476 (2 x $603,238) and receive a monthly allowance of $1,542 (2 x $771). Now that is a massive chunk of 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.