Each of these programs serves a different purpose in helping ADF members achieve homeownership while managing the financial pressures that can arise during relocations and service transitions.
Defence Home Ownership Assistance Scheme (DHOAS)
DHOAS is a home loan subsidy scheme aimed at reducing mortgage costs for ADF personnel, both current and former. It provides financial support to assist in purchasing a home by paying a monthly subsidy directly into the home loan.
To qualify for DHOAS, ADF members must meet specific service requirements and conditions. This includes:
- Completion of a qualifying period of service, which varies depending on whether the member is in the Permanent Force or the Reserves.
- Members must accrue service credits, which determine their subsidy payments and duration.
To start the DHOAS loan process, ADF members need to follow a few steps to ensure eligibility and secure their home loan. These include:
- Obtain a subsidy certificate through the Department of Veterans’ Affairs (DVA).
- Choose a lender from the approved panel (Australian Military Bank, Defence Bank, or NAB).
- Submit your loan application with the chosen lender and provide the necessary documents, such as proof of service and the subsidy certificate.
Working with DHOAS loan experts who can help you through the process is a good idea.
Home Purchase Assistance Scheme (HPAS)
HPAS provides ADF members with substantial financial assistance to cover upfront costs like deposits and legal fees, easing entry into homeownership—a significant advantage for those early in their careers. This support helps members achieve home ownership and improve financial stability.
HPAS is a one-time, tax-free payment of $16,949 (as of 2024) provided to ADF members to assist with purchasing their home. This payment can be used towards a deposit or other costs related to purchasing a home.
To qualify for HPAS, ADF members must meet specific criteria that ensure they are eligible. This includes:
- You must have at least 12 months of service left at the posting location at the time of purchasing the home.
- The property must be intended as the primary residence for the member or their family.
You must have at least 12 months of service remaining at your posting location to qualify. If you have a shorter assignment, you may not be eligible to use HPAS until you receive a longer posting.
Home Purchase or Sale Expenses Allowance (HPSEA)
HPSEA is designed to reimburse ADF members for some expenses associated with selling a home and purchasing another due to relocation for a new posting.
To be eligible for HPSEA, ADF members must meet specific criteria related to their home sales and purchases linked to military postings. This includes:
- You must have sold your previous home due to a posting and be purchasing a new one in your new location.
- The home must be for your family’s primary residence, and you must have at least 12 months of service remaining in the new posting location.
To claim reimbursement for eligible expenses, gather relevant documentation, such as a contract of sale, settlement details, and receipts for any fees and government duties paid. These documents are then submitted through your chain of command using the appropriate web form.
HPSEA’s reimbursement of home-related costs reduces financial strain during relocations, ensuring ADF members can focus on their duties and family needs without the burden of immediate out-of-pocket expenses.
However, a significant challenge is that the benefit depends on a sell-before-you-buy model, meaning ADF members must sell their current home before receiving support for a new one. This requirement can add stress as members work to coordinate property transactions across locations, often under tight timelines.
Can you receive all three benefits?
Yes, as an ADF member, you may be eligible to access all three benefits – DHOAS, HPAS, and HPSEA, as each is designed to assist you with buying and owning a home in Defence.
If you’re buying your first home, you can use the one-time HPAS payment to help cover upfront costs like the deposit and legal fees. This can ease your entry into the property market and help you settle into your posting location.
If you’ve met the minimum qualifying service for DHOAS, you could then apply for a DHOAS loan to reduce ongoing mortgage costs. With this monthly subsidy, you’ll have financial support over the long term, making home ownership more affordable while you continue to serve.
If you’re posted to a new location, you might decide to sell your current home and purchase another closer to your new posting location. By claiming HPSEA, you can be reimbursed for expenses like stamp duty, legal fees, and agent costs, helping to reduce the financial strain of relocating.
Using HPAS to enter the property market, DHOAS to sustain mortgage support, and HPSEA to cover relocation expenses enables you to make the most of these benefits throughout your ADF career.
Conclusion
The ADF provides several housing entitlements to assist personnel with homeownership.
The Defence Home Ownership Assistance Scheme offers an ongoing mortgage subsidy to reduce monthly costs, ideal for those seeking long-term support. Eligibility requires years of service and service credits.
The Home Purchase Assistance Scheme provides a one-time payment for first-time home buyers to cover upfront costs, although it is limited to those purchasing their first home.
The Home Purchase or Sale Expenses Allowance reimburses essential costs like legal and government fees related to buying or selling a home during relocations. Eligibility requires the sale of a current home due to a posting.
These entitlements help ADF members manage the financial challenges of homeownership and relocations effectively. National Service Financial can provide experienced financial advisors for ADF members and veterans to assist with navigating these housing entitlements. Their expert advisors can help you maximise your benefits and make informed decisions.
