Australian Defence Force Home Loans

If you’re in the Australian Defence Force, there are several home loans specifically designed to help you secure your dream home. Additionally, there are grants available for ex-military personnel who want to settle into a home of their own.

Let’s explore some of these grants:

1. The Home Purchase Assistance Scheme (HPAS)
   

   You can receive a lump sum payment of $16,949 (before tax). This lump sum is known as HPAS. It’s provided to assist ADF members in purchasing their own homes.

As an ADF member, you’re eligible to receive the HPAS payment only once during your service. To qualify, you must:

• Purchase a home in your new location after receiving your posting order.
• Remain in that location for at least 12 months after signing the contract.
• Occupy the home within the required timeframe.

If you’re separated from your family due to service, you can choose to buy a home where they live, provided they reside in the home for at least 12 months. However, if you purchase the house jointly with someone who isn’t a dependent, you’ll only receive a portion of the grant.

Once your eligibility for HPAS is confirmed, the lump sum will be paid to you. This payment can be used toward your house deposit. You’re considered to have purchased a home once you sign either the purchase contract or the agreement for its construction.

If the sale falls through, you may need to repay the HPAS sum. However, if service obligations prevent the purchase, you may be able to claim reasonable costs.

Keep in mind that if a non-ADF member (who isn’t a recognised partner) is a joint owner of the property, it will impact the amount you receive under HPAS. For example, if you, an ADF member, buy the house with a friend who:

• Is not an ADF member,
• Is not officially listed as your partner,

then you’ll only be eligible for 50% of the $16,949 lump sum payment.

2. The Home Purchase or Sale Expenses Allowance (HPSEA)

   This one’s interesting! HPSEA is an allowance for ADF members who are posted to a new location. It’s designed to cover reasonable costs incurred when selling a home due to a new posting. It also covers expenses when you sell your home from your previous location and purchase another in the new one.

HPSEA covers reasonable expenses like:

• Real estate agent’s commissions,
• Stamp duty,
• Solicitor’s fees, etc.

The purpose of HPSEA is to compensate ADF members for the costs of selling and buying homes due to postings. The amount paid as this allowance depends on the expenses incurred.

3. The Defence Home Ownership Assistance Scheme (DHOAS)

   The Defence Home Ownership Assistance Scheme (DHOAS) is intended to help current and former ADF members and their families become homeowners. Administered by the Department of Veterans’ Affairs on behalf of the Department of Defence, DHOAS aims to improve ADF recruitment and retention.

To achieve this, the scheme ensures that those who have access to these loans are soldiers who have served for an extended period in the ADF. The longer you serve, the more assistance you’re entitled to under DHOAS.

To be eligible for a loan under this scheme, you must have served within the last five years and completed a qualifying period of service to obtain a service credit.

Once you apply for DHOAS and receive approval, you’ll get an email containing a certificate of entitlement. This certificate is key under DHOAS, as it proves your eligibility when you approach the bank for your home loan.

DHOAS provides a subsidy on the interest of your home loan. The subsidy, paid into your loan account monthly, has three tiers. The subsidy amount you receive depends on your tier, which is determined by how long you’ve served. The longer your service, the higher your tier and the greater your monthly subsidy.

For more detailed information about DHOAS subsidies, visit the Australian Department of Veterans’ Affairs website.