Education

Australian Defence Force Home Loans

ADF members listen up! Do you want to buy or invest in your own home? Then you must learn about the Australian Defence Force Home Loan subsidies offered by the NAB, Defence Bank & Military Bank

Defence Force Loans & Entitlements

There are a bunch of ADF loan incentives available to you as an ADF member who wants to acquire a property in Australia, but you must crunch the numbers. How do you go about getting these grants, you might ask?

That’s why we’re here! The aim with this post is to give you a ‘soldiers five’ (Heads up) of how it works and what grants are available so you can be more informed about things like loans and incentives that are open to you as an ADF Member. We will give you all the details you need to know about things like NAB Defence Force Home loan, ADF Loans, HPAS, DHOAS loans and grants for ex-military. 

Well let’s get into it!

What Australian Defence Force Entitlements are available to me as an ADF Member?

If you’re in the Australian Defence Force, there are several home loans open to you that are designed towards helping you get your dream home. There are also grants for ex-military personnel who want to get settled in a home of their own. 

Let’s take a look at some of these grants below:

1. The Home Purchase Assistance Scheme (HPAS)

What? You can get a lump sum payment of $16,949 (minus tax)?! Yes, it’s called HPAS. It is given to assist the members of the Australian Defence Force (ADF) purchase their own homes.

If you are an ADF member, you can only receive an HPAS payment once throughout the period of your service. The criteria for eligibility under this grant are as follows:

  • You must buy a home in your new location after getting your posting order. 
  • You must be in that location for at least 12 months after signing the contract
  • You have to occupy the home within the required time limit.

However, if you live away from your family for Service reasons, you can choose to buy a home where they live. But they must live in the home you bought for at least 12 months. One thing you want to remember, however, is that if you buy the house jointly with someone who’s not a dependent, you will only get a percentage of the grant.

Once it is certain that you are eligible to receive HPAS, the lump sum payment will be made to you. After that, you will then have to pay your house deposit. Once you have signed either the contract to purchase the home or the agreement for it to be built, then you are considered to have purchased a home.

If the sale is unsuccessful, you may need to repay the HPAS sum you received. But if you were unable to buy the house because of service reasons, then you may be able to claim reasonable costs.

Now, you must note that if a non-ADF member (who isn’t listed as a recognised partner) is the joint owner of the property, it will affect the amount you get under HPAS. So if, for instance, you (an ADF Member) purchased the house jointly with a friend, and:

  • The friend is not an ADF member
  • The friend was not officially listed as your partner;

then you will only be eligible to receive 50% of that $16,949 lump sum payment.  

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

This one is an interesting one! The HPSEA is an allowance for ADF members who have been posted to a new location. It aims to cover all reasonable costs that an ADF member has to make when they sell a home at the time they’re being posted to a new location. It also covers the expenses that you have when you sell your house from your previous posting location and buy another house in the new location. 

HPSEA makes provision for reasonable expenses like:

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

The purpose of HPSEA is basically to compensate ADF members for the expenses they have to incur due to selling and buying houses because of their postings. Therefore the amount that gets paid as this allowance depends on the costs incurred.

3. The Defence Home Ownership Assistance Scheme (DHOAS)

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

To do this, the Department of Veterans’ Affairs ensures that those who have access to the loans from this scheme are soldiers who have served for a long time in the Australian Defence Force. This means that the longer you serve in the ADF, the more entitled you get to recieve help under DHOAS, and the more assistance you can get under DHOAS. 

To be eligible for a loan under this scheme, you must have served within the last five years of applying for DHOAS. In addition, you must have completed a qualifying period of service and obtained a service credit.

Once you apply for DHOAS and get approval, you will receive an email containing a certificate of entitlement. This certificate is your magic wand under DHOAS. With it, you can prove your DHOAS eligibility when you go to the bank for your home loan. 

DHOAS gives you a subsidy on the interest of your home loan. The subsidy, which gets paid into your home loan account monthly, has three tiers. The amount of subsidy you receive depends on the tier that you are in. And the tier that you’re in depends on how long you have served. The longer you have served, the higher your tier level and the higher monthly subsidy payment you will receive.

To get the finer details about how DHOAS subsidies work, visit the Australian Department of Veteran Affairs site.

Where Do NAB Defence Force Home Loans (NAB DFHL) Come In?

NAB Defence Force Home Loans is an approved DHOAS home loan provider. Along with other banks like Defence Bank and Australian Military Bank, NAB is committed to providing Defence Force Home Loans and has been doing so since 1991. Their aim is to help members of the Australian Defence Force get home loans at discounted rates.

NAB caters to the home needs of those still in the defence force as well as those who are transitioning out of the defence force. With NAB, you are sure to pay off your home loan in good time and without incurring any heavy charges.

Invest or Build Your Dream Home In Australia Without Any Stress

The decision to buy or invest in a house is one of the best decisions of a person’s life. And thanks to the Australian Department of Defence, those in the military and ex-military personnel in the Australian Defence Force have access to grants and incentives that will help them get their dream home.

At Capital Properties, we help Australian Defence Force members acquire financial freedom by helping them to take advantage of all the incentives available to them. We are a group of energetic, knowledgeable property investment experts who understand the demands of the military. We have ex-Defence personnel within our ranks, and so our concern is genuine and personal. 

Are you a member of the Australian Army, Royal Australian Air Force or Australian Navy? Are you looking to gain financial independence by buying property in Australia? Do you want to leverage government loans and grants? 

Then look no further. We are here for you. We’ll ensure that we walk you through the entire process of getting settled in your dream home in Australia. 

Ready to get started? Contact us now!

Capital Properties

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