DHOAS Facts Summarised:
Overview: Double DHOAS, initiated by the Department of Defence in July 2008, aids Australian Defence Force (ADF) members in achieving home ownership. It serves as a retention strategy, offering incentives for continued ADF service.
Application Process: To access DHOAS, members obtain a subsidy certificate from the Department of Veterans’ Affairs (DVA). Three designated Home Loan Providers (HLPs) facilitate DHOAS home loans: Australian Military Bank, Defence Bank Limited, and National Australia Bank.
Loan Details: DHOAS assistance is not tied to a specific loan amount. Members decide the loan amount with their HLP, considering the provider’s criteria. Subsidy amounts depend on entitlement tiers and the borrowed sum.
Entitlement Criteria: Qualification involves completing a service period and accruing a Service Credit. Permanent members require two consecutive years of service, while Reservists need four years of effective service. Service Credit accrual continues monthly for Permanent members and annually for Reservists.
Duration of Assistance: DHOAS assistance is available as long as Service Credit, a DHOAS home loan, and scheme conditions are met. Maximum assistance is 20 years without warlike service, potentially extending to 25 years for those with warlike service.
Entitlement Deductions: Previous participation in DHOAS or related schemes deducts from the entitlement period under the new DHOAS. Length of service, breaks, and specific conditions impact entitlement.
Subsidy Tiers and Limits: Entitlement is categorized into three tiers with corresponding subsidised loan limits and maximum monthly subsidies. The amount is determined by the loan balance and the capped interest rate.
Application and Lump Sum Payment: Applicants submit an online form with service records. A lump sum payment is possible, converting up to four years of Service Credit.
Scheme Conditions: Living in the home for at least 12 months is required. DHOAS loans are strictly for buying, building, or renovating homes, and Fringe Benefits Tax may apply.
Separation and Final Subsidy: Upon separation, members can apply for a final subsidy certificate. Payments are tiered based on years of service. Reservists need 20 days of paid Reserve service to maintain eligibility.
Fringe Benefits Tax: DHOAS payments are subject to FBT, impacting income tests for government benefits.
For queries and additional information, visit the DHOAS website or contact the DHOAS customer service team. https://www.dhoas.gov.au/
Or you can book a free session with one of our qualified property investment advisors and DHOAS experts. https://strikeproperty.com.au/discovery-session/