As a current or former Australian Defence Force member, you have access to unique government grants and schemes that can make buying a home more affordable. These programs recognise your service and provide financial assistance that most civilians don't qualify for.
Defence Home Owner Assistance Scheme (DHOAS)
The Defence Home Owner Assistance Scheme remains one of the most valuable benefits available to ADF members. This scheme provides:
• Monthly subsidies to reduce your home loan repayments
• Support for both serving and ex-serving members
• Assistance whether you choose a variable interest rate or fixed interest rate home loan
• Coverage for properties across Australia
The subsidy amount depends on your loan amount and can significantly impact your borrowing capacity when applying for a home loan. Home Finance & Mortgage Brokers experienced with defence clients understand how to factor DHOAS into your Home Loan application.
First Home Owner Grant (FHOG)
Defence members are also eligible for standard government grants like the First Home Owner Grant. Each state and territory offers different amounts:
• New South Wales: $10,000 for new homes
• Victoria: $10,000 for new homes and established properties in regional areas
• Queensland: $15,000 for new homes
• Western Australia: $10,000 for new homes
• South Australia: $15,000 for new homes
• Tasmania: $20,000 for new homes
These grants can be used towards your deposit, reducing the loan to value ratio (LVR) and potentially eliminating lenders mortgage insurance (LMI) requirements.
Stamp Duty Concessions
Many states offer stamp duty reductions or exemptions for first home buyers, which defence members can combine with their DHOAS benefits. These concessions can save thousands of dollars on your property purchase.
The savings from reduced stamp duty can be substantial, especially in the current property market where prices continue to rise across major cities.
Defence Force Home Loan Advantages
When working with specialised mortgage brokers who understand defence circumstances, you can access:
• Streamlined application process tailored to military employment
• Interest rate discounts from lenders who value stable defence employment
• Flexible assessment of bank statements and income verification
• Understanding of deployment impacts on financial situation
• Access to Home Loan options from banks and lenders across Australia
Getting Pre-Approved
Home Loan pre-approval is particularly important for defence members who may be posted or deployed. Getting pre-approved helps you:
• Understand your borrowing capacity before house hunting
• Act quickly when you find the right property
• Negotiate with confidence in competitive markets
• Plan around potential postings or relocations
The application process for defence members often requires additional documentation, but experienced brokers can guide you through efficiently.
Interest Rate Options
Defence members have access to various Home Loan Rates and structures:
Fixed Interest Rate Home Loans:
• Provide payment certainty during deployments
• Protection against rising home loan interest rates
• Helpful for budgeting on defence salaries
Variable Home Loan Rates:
• Often lower initial rates
• Access to offset accounts to reduce interest
• Flexibility for extra repayments
Many defence members choose split loans, combining both fixed and variable portions to balance security with flexibility.
Calculating Home Loan Repayments
When calculating home loan repayments, factor in:
• Your base salary plus allowances
• DHOAS subsidy payments
• Any rental income if posted away
• Home equity from previous properties
Defence-specific mortgage brokers understand how to present your complete financial picture to lenders, potentially increasing your loan amount approval.
Offset Accounts for Defence Members
An offset account can be particularly valuable for defence members who:
• Receive irregular allowances or bonuses
• Want to reduce interest while maintaining access to funds
• Are saving for future property investments
• Need flexible access to money during postings
Making the Most of Your Benefits
To maximise your government grants and schemes:
- Research all available state and federal programs
- Understand how DHOAS integrates with your chosen loan structure
- Consider timing your purchase to align with policy changes
- Work with brokers who specialise in defence finance
- Get pre-approved early in your property search
As a defence member, you've earned these benefits through your service. Understanding and utilising available government grants and schemes can save tens of thousands of dollars over your loan term while making homeownership more achievable.
Whether you're looking to apply for a home loan for the first time or refinancing an existing property, the combination of defence-specific schemes and standard government grants creates opportunities that shouldn't be overlooked.
Call one of our team or book an appointment at a time that works for you to discuss how these government grants and schemes can benefit your specific situation.
