DEFENCE HOME LOAN information
Defence Home Ownership Assistance Scheme (DHOAS)
DHOAS was designed to achieve two aims within the ADF: to help you and your family achieve homeownership and to improve recruitment/retention. Fortunately for many of you, this means that you can service your loan easier.
Your eligible subsidy tier
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:
|Subsidy Tier||Minimum Permanent Service||Minimum Reserve Service||Subsidised Loan Amount||Maximum Monthly Subsidy*|
Up to $510
Up to $765
Up to $1020
*Estimated monthly subsidy values based on the July 2023 median interest rate. These monthly subsidy values fluctuate based on changes in the median interest rate.
As of 1 Jul 2023, the AHP is $912,289 (down from $1,005,397).
You can see that you have to wait two 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 $255 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.
Lastly, you need to note the three lenders that have been approved to provide DHOAS loans are:
DHOAS 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 $414 per month x 2 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!
You may be eligible for assistance to purchase your own home with HPAS. It comes in the form of a lump-sum payment and the amount you’re eligible for is affected by your share of ownership of the property - joint ownership with a non-ADF member will see it halved).
HPSEA is an allowance for the reimbursement of reasonable costs to an ADF member when they sell a home at the time they are being posted to a new location; or if they sell in their previous posting location and buy again in the new location.
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