Home Loans for Defence Force Personnel

 

Defence Force Home Loans

What is the defence force home ownership scheme?

✅ The Defence Home Ownership Assistance Scheme (DHOAS) helps current and former Australian Defence Force (ADF) members and their families buy a home. 
✅The Scheme is aimed at improving ADF recruitment and retention. The longer you serve, the more entitlement you accrue.

✅Basically it is an interest rate subsidy on the portion of the loan eligible for the scheme.   

Am I eligible?

✅4 years minimum service to start accruing subsidy credits.  

✅You accrue 1 year subsidy for every year service after the qualifying period.

✅Served in the Australian Defence Force within the last 5 years (even if not currently serving).

✅Your accumulated service has earned you "service credit".  These credits become subsidy payments towards your monthly repayments.

✅In some cases foreign service is required.

✅There is an expectation that you may continue to serve in the next 12 months.

✅Must be owner occupied for > 12 months.

What are the defence force discounts?

✅Discounted interest rates.

✅Borrow 90-95% of property purchase price.

✅Receive a monthly subsidy for the "interest portion" of your repayments.  This is equal to 37.5% of the average monthly repayment on the portion of the loan being subsidised by the scheme.  The tiers of subsidy are in the table below.

How do I work out my payment subsidy?

✅Use this updated table or give me a call on 0423 237 242.

Subsidy tiers for 2020-21

Subsidy tier	Minimum Permanent service	Minimum Reserve service	Subsidised loan amount	Maximum monthly subsidy*
1	4 years	8 years	$300,243	Up to $206
2	8 years	12 years	$450,365	Up to $309
3	12 years	16 years	$600,486	Up to $412

Will they accept bonuses & allowances?

✅Defence force subsidies

✅Foreign combat payments/bonuses

✅Lump sum payments

✅Defence service accommodation subsidies.  You might pay this if you live in DFA housing.  Some banks will add this back to your income increasing your borrowing power.

✅Uniform allowances

✅Private Rental allowances if living outside DFA housing.  Some banks will allow this which increases your borrowing capacity.

✅Pension payments from DFA superannuation may be considered.  If you've added extra, this can be added back to your income increasing your borrowing capacity.

Can I use a guarantor?

✅Defence force government subsidies are added to your guarantor loan to increase borrowing power.

Can I invest in property under this scheme?

✅Borrow 80% of property purchase price and get interest only for up to 5 years.

Do reserve members get a subsidy?

✅8 year minimum qualifying period.

✅Each year accrues 20 days service

I'm here if you need me.

No fee service.

Matthew Stack

matthew@mortgagebrokerrevesby.com.au

www.mortgagebrokerrevesby.com.au

0423 237 242