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Purpose

Guidance
  1. The Defence Home Ownership Assistance Scheme helps a member to buy their own home. The scheme pays a monthly subsidy on the member's home loan interest.

  2. The scheme is administered by the Department of Veterans' Affairs for Defence.

Overview

Guidance
  1. This Part provides a summary of the conditions of the Defence home ownership assistance scheme.

  2. The detailed rules of the scheme are set out in the Defence Home Ownership Assistance Scheme Act 2008 and Defence Home Ownership Assistance Scheme Regulations 2008.

  3. The information in this Part is a guide only. For more information, use the links to the legislation or visit the Department of Veterans' Affairs website.

  4. A member may contact the Department of Veterans' Affairs on 1300 4 DHOAS (1300 434 627) to ask about the scheme.

Qualifying service period

Guidance
  1. To access the scheme a member must first complete a specific period of service. This period is called the qualifying service period.

  2. The qualifying service period for a member of the Permanent Forces is four years of effective service, performed in consecutive years.

  3. The qualifying service period for a member of the Reserves is eight years of effective service, performed in consecutive years.

  4. The method for calculating effective service for the purpose of this scheme is set out in the Defence Home Ownership Assistance Scheme Regulations 2008.

When subsidy becomes payable

Guidance

Subsidy is payable to a subsidised borrower when the following conditions have been met.

  1. The borrower's loan is made by a declared loan provider.

  2. The borrower's loan is secured by a mortgage over an interest in land.

  3. The borrower meets various conditions relating to eligibility, the purpose of the loan, ownership, the location and use of the land and a 12 month occupancy requirement.

Amount of subsidy

Guidance
  1. The amount of subsidy a member gets depends on how much they borrow and how long they have served.

  2. Some members may be able to convert their accrued subsidy to a one off lump sum payment.

When subsidy stops being payable

Guidance

There are many situations that may cause the payment of subsidy to cease. These include situation where the borrower no longer has a service credit, the ownership or occupancy arrangements change, the Secretary cancels payment, subsidy is paid to the borrower on another loan or the borrower does not disclose a change in circumstances.

How to apply for a subsidy certificate

Guidance
  1. A member must complete an application form. The forms are available on the Department of Veterans' Affairs website.

  2. If the member is eligible, the Department of Veterans' Affairs will issue a subsidy certificate to the member. The member must provide the certificate to their declared loan provider.

Effects on other conditions of service

Guidance

The scheme does not displace the following conditions of service.

  1. Home purchase or sale expenses allowance (HPSEA).

  2. Home purchase assistance scheme (HPAS).

Suitable own home

Guidance

A home is taken to be a 'suitable own home' if the home is bought using a benefit under the scheme.

Housing assistance

Guidance
  1. A member will not usually get rent allowance or a service residence if they have a subsidised loan on a home at their posting location.

  2. A home bought using a benefit under the scheme is a suitable own home for all further postings to that home's location.

Benefit passes on death

Guidance

If a member dies, the member's surviving partner may apply for the member's benefit under the scheme.

Pay and conditions manual

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