Catch up with Robbie and Clint as they talk about old friends, war-stories and most importantly the lessons learned in the ADF that formed the culture of their leadership on the Axons Unleashed Podcast.
HOW MUCH DHOAS AM I ENTITLED TO?
DHOAS is a home ownership scheme, specifically designed to encourage Defence members to buy their own properties by subsidising their monthly mortgage payments – but how much DHOAS are you actually entitled to?
How does DHOAS work?
The Defence Home Ownership Assistance Scheme was designed to achieve two aims within the ADF; help you and your family achieve homeownership, and to improve recruitment/retention. Fortunately for many of you, this means that you are able to service your loan easier.
How is this so?
Basically, a DHOAS loan subsidises your home loan, for an amount and period of time-based on how long you serve. As of 2022, it contributes a monthly amount to your loan. Not bad for just being an eligible ADF member, right?
The amount you are entitled to receive varies, based on a three-tier system – as seen in the table below and very importantly, you can apply for your final DHOAS certificate up to 5 years after discharge (keep that in mind for later…)
How much you’re entitled to is calculated as a percentage on the The Australian Average House Price (AHP) and split into three subsidy tiers based on service length:
- Tier 1 is 40% of the AHP
- Tier 2 is 60% of the AHP
- Tier 3 is 80% of the AHP – maximum benefit!
As at 1 July 2022, the AHP is $777,343 – meaning it contributes a monthly amount between $187 and $375 to your loan.
How do you know what DHOAS subsidy tier you're in?
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:
To get a rough estimate of the monthly DHOAS subsidy payments you could be eligible to receive, head to the Subsidy Calculator and:
- Enter your DHOAS home loan balance, on your tier level’s subsidised loan limit
- Enter 3.46 as the interest rate – (please note: this is the current June 2021 rate used to calculate DHOAS subsidy payments, DVA reviews the median rate each month)
*Please note: this calculator is only to be used as an estimate on the subsidy payment, the actual amount you will receive is based on a given loan amount and interest rate.
Defence Home Ownership Assistance Scheme (DHOAS)
Subsidy Tiers for 2021-22
|Subsidy Tier||Minimum Permanent Service||Minimum Reserve Service||Subsidised Loan Amount||Max. Monthly Subsidy*|
|1||4 Years||8 Years||$310,2937||Up to $187|
|2||8 Years||12 Years||$466,406||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.
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.
Karl Schwantes, an Army Officer Veteran & a leader in the jewellery world and the wider community joins us on the Axons Unleashed Podcast.
Just two years on, their PPOR has risen in value by ~$200K even after buying it for ‘lifestyle reasons’ rather than ‘wealth creation’ reasons. Not only have they enjoyed the experience of building 2 houses, but the accompanying $370K of net growth over the 2 properties is also a stellar result!
Is Defence Housing investing right for you? It’s not for everyone. Learn the difference between regular and DHA investing here.