Home Guarantee Scheme Updates for ADF Members
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The Federal Government has revealed substantial modifications to the Home Guarantee Scheme, commencing 1 October 2025, which will significantly broaden homeownership possibilities for first-time buyers – particularly benefiting Australian Defence Force members nationwide. These modifications constitute the most extensive enhancement of government housing assistance in recent history, eliminating critical obstacles that have historically restricted many service personnel from accessing the property market.
Beginning October 1, 2025, the Home Guarantee Scheme will experience a complete overhaul aimed at assisting more Australians in securing homeownership faster. The enhanced program eliminates restrictions on the quantity of Government guarantees offered, providing all qualifying Australian first home purchasers the opportunity to enter the market with deposits as low as 5% while bypassing Lenders Mortgage Insurance requirements.
Unrestricted Availability: The restrictive quotas that formerly constrained scheme access have been eliminated. Every qualifying first-time purchaser, including ADF members, may now apply without concerns about missing opportunities due to limited capacity.
Removal of Income Restrictions: First home purchasers with elevated incomes can now access the Scheme, ensuring experienced service members and those in senior ranks are no longer disqualified based on pay grade thresholds.
Substantially Elevated Property Value Limits: Property value thresholds have been meaningfully raised across most areas to align with current market realities and provide purchasers access to an expanded selection of properties.
Streamlined Regional Accessibility: The distinct Regional First Home Buyer Guarantee will merge with the primary First Home Guarantee, creating a more efficient process for ADF members stationed in rural and regional locations.
The updated value limits acknowledge Australia's property market realities and offer ADF members considerably more housing choices:
Sydney and NSW regional areas: Enhanced from $900,000 to $1,500,000
Melbourne and Victorian regional areas: Increased from $800,000 to $950,000
Brisbane, Gold Coast, and Sunshine Coast: Elevated from $700,000 to $1,000,000
Perth: Enhanced from $600,000 to $850,000
Adelaide: Raised from $600,000 to $900,000
These enhancements recognize the considerable property value increases in metropolitan cities and regional areas, ensuring ADF members aren't prevented from purchasing in locations where they serve and wish to establish roots.
The scheme operates through over 30 participating lenders, including major banks, customer-owned banks, and regional institutions. Service personnel interested in the expanded scheme should:
Start saving now: While only 5% is required, having additional savings provides more options and security
Check eligibility: Use Housing Australia's eligibility tool to confirm qualification
Consider location carefully: Price caps vary significantly between areas
Seek professional advice: Consult with mortgage brokers who understand both the scheme and ADF members' unique employment circumstances
ADF members have traditionally faced unique challenges in securing home loans due to deployment schedules, varying allowances affecting income documentation, and different pay structures across defence branches. The expanded Home Guarantee Scheme addresses many of these issues by focusing on accessibility and reducing barriers to entry.
Don't wait until October 2025 to begin preparing for these exciting changes. Let Defence Loans help you turn the dream of owning a home into a reality.
Step 1: Initial Consultation
Your property journey begins with a comprehensive discussion with your Defence Home Loans broker who understands the unique circumstances of ADF members. Whether you're purchasing your first home, investing, or refinancing, your broker will understand your goals, financial situation, and ADF-specific conditions such as postings or deployment income. This is when you'll discuss your borrowing capacity and explore loan options from over 2,000 products across major banks, smaller lenders, and non-bank lenders. Your broker will also walk you through interest rates, LVR, and any possible LMI considerations.
Step 2: Financial Assessment
The next step involves your broker conducting a thorough evaluation of your complete financial position, including ADF allowances and benefits that other brokers might overlook. This includes reviewing your regular income, deployment pay, allowances, bank statements, assets, liabilities, credit history, and savings patterns. Your broker will then calculate your true borrowing capacity, helping you understand how much you can afford and what your monthly repayments might look like. Your broker will also assess whether you qualify for interest rate discounts, government schemes, or ADF-specific benefits like the Defence Service Home Ownership Assistance Scheme.
Step 3: Loan Selection
Based on your financial situation and military lifestyle requirements, your broker will research and present a curated list of loan options from lenders who understand ADF circumstances. These loans will be tailored to meet your specific needs, whether you're looking for fixed rates, variable rates, or flexible options with offset accounts that work with irregular deployment income. Your broker will explain the loan-to-value ratio (LVR) and help you weigh the pros and cons of each option, ensuring you make an informed decision that accommodates potential postings and career changes.
Step 4: Pre-Approval
Getting pre-approved gives you a clear understanding of your budget and strengthens your negotiating position, especially important if you're buying where you're not currently stationed. Your broker will guide you through this process using our online technology, ensuring all necessary documents including tax returns, payslips, and allowance statements are submitted efficiently. Pre-approval gives you confidence to act quickly in any Australian property market and avoid missing out on your desired property, even if deployed overseas.
Step 5: Application Submission
Once you've selected the right loan, your broker will manage the entire application process, handling all lender communications regardless of where you're stationed. They will submit your application and ensure all required documents are provided, including ADF-specific paperwork such as proof of allowances, deployment income, or service history. Your broker will maintain regular communication with you and the lender, addressing questions and ensuring a smooth process that works around your military commitments.
Step 6: Loan Approval & Settlement
After your loan is approved, your broker will assist in reviewing the final loan agreement, ensuring all terms including interest rates, fees, and repayment schedules are clearly understood. They will help set up your repayment structure to accommodate ADF pay cycles and assist with arranging necessary insurance such as home loan protection. Once settlement is confirmed, your property ownership is complete, and you'll receive access to your new property, whether you can move in immediately or need to arrange tenants due to postings.
Step 7: Ongoing Support
Once your loan is settled, Defence Home Loans remains available for comprehensive ongoing support throughout your military career and beyond. This includes advising on managing loan repayments during deployments, exploring refinancing opportunities as circumstances change, or helping you leverage home equity for future investments. Your broker's relationship doesn't end at settlement—they'll guide you through postings, career transitions, and your entire property ownership journey as a current or former ADF member.
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Milan Holly
I couldn’t recommend Azura Financial highly enough. Ben, Nick and Ray were absolutely fantastic from start to finish. I had actually already arranged to work with another broker, but after my first conversations with Ben, I was so impressed with his approach, knowledge and level of service that I decided to switch to Azura Financial, and I’m extremely glad I did. The entire process was incredibly smooth. Ben, Nick and Ray were always responsive, helpful and patient, kept me updated throughout every stage, and made what could have been a stressful process feel straightforward and well managed. Whenever I had a question or needed assistance, they were there. What impressed me most was the genuine level of care and attention they provided. I never felt like just another client — the service was professional, personal and consistently excellent. I will definitely use Azura Financial again in the future and would have absolutely no hesitation recommending Ben, Nick and Ray to my friends, family or anyone looking for a great mortgage broker. Thank you, guys, for making the whole experience such a positive one. Truly outstanding service from beginning to end!
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Thea Edwards
Nick and the team were so lovely. Professional, genuine, responsive and easy to deal with. Would highly recommend.
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simon preshaw
Nick and the team were a pleasure to work with. They answered all of my questions and if they weren't immediately available, they were always quick to call me back.
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Alannah Paige
I am a first home buyer and had Carl as my mortgage broker. He worked diligently to follow up any issues or questions I had and made the process as smooth as it could. I highly recommend! Thank you Carl.
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sarah ander
As a first home buyer, Carl and the team at Azura were incredibly helpful throughout the whole process. They made everything feel straightforward and were always there to answer any questions along the way. I’ve already recommended them to friends and would highly recommend them to anyone looking to get a mortgage!
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Shaun Cunningham
As a founder, getting a mortgage requires a couple more hoops to jump through, which is why I couldn't recommend Nick O'Sullivan and the Azura team more highly. Not only were they able to offer a seamless process, but Nick was also patient with us as we changed our minds about when to buy (over a period of years!). The truth is anyone can approach a bank and get a mortgage, but when things don't go perfectly (e.g. abrupt government changes), that's when you want a pro on your team like Nick.
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Van Tran
Nick and the team at Azura Financial exceeded our expectations at every step. Their guidance was clear, their expertise was evident, and they handled every financial detail with care — giving us complete peace of mind throughout the process. We couldn't have asked for a better team by our side. Thank you very much, V&V.
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Philip Woods
Carl and team were absolutely impressive with their attentiveness to answering questions no matter how stupid they were. The urgency they put into attending to timelines and requests was superb. I would recommend them without hesitation.
めめん
Nick was amazing to work with. He's easygoing, quick to reply, and genuinely a very competent broker. He made my loan possible and secured a great deal for me. Highly recommend:)
A defence mortgage broker specialises in arranging home loans, car loans, personal loans, and other finance for current and former ADF members and their families. Unlike going directly to a single bank, a defence mortgage broker has access to a panel of lenders and can compare products, rates, and policies across the market to find a structure that fits the borrower's circumstances. This includes understanding how lenders treat ADF-specific income such as allowances, DHOAS subsidies, and Defence pensions for servicing purposes. It also includes knowing which lenders have favourable policies for situations common among defence personnel, such as frequent relocations, deployment income, low-deposit purchases, Defence Housing Australia investment properties, and lending to members with short service histories or non-standard employment structures.
ADF members face lending scenarios that differ from standard civilian borrowers. Frequent postings can affect property occupancy requirements. Allowances that form a significant portion of take-home pay may be treated differently by each lender. DHOAS eligibility adds a layer that interacts with loan structure and product selection. A defence mortgage broker who works across a broad lender panel can identify which lenders recognise the full range of ADF income, which have policies suited to the borrower's property type and LVR position, and where the differences in credit policy between lenders may affect approval or borrowing capacity. Because lender policies on ADF income, allowances, and employment structures vary considerably, the lender that suits one ADF borrower may not suit another, even where the loan amount and property type are similar.
Construction loans are available to ADF members through a range of lenders. Some lenders offer construction loans at up to 98% LVR inclusive of LMI for owner-occupied properties and up to 95% inclusive of LMI for investment properties. Construction must generally be carried out by a licensed builder under a standard fixed-price building contract. Interest-only repayments during the construction period are typically available for up to 24 months. Cost-plus contracts are generally not acceptable. Owner-builder construction may be considered by some lenders at reduced LVRs, typically a maximum of 80%, and may require one applicant to be a licensed builder. Some lenders permit the construction of up to 2 residential dwellings on a single block of land, provided the borrower is not acting as a commercial developer. Progress draw processes, valuation requirements, and builder documentation standards differ between lenders, which can affect both approval timelines and the overall experience during the build.
LVR limits for refinancing vary between lenders. Some ADF-specialist lenders offer refinancing at up to 98% LVR inclusive of LMI for owner-occupied properties and up to 95% inclusive of LMI for investment properties. Where the refinance is combined with equity release or debt consolidation, the maximum LVR is typically lower, often around 90% inclusive of LMI. Most lenders require verification of satisfactory repayment history over the previous six months, either through loan statements or comprehensive credit reporting data. Because refinance policies, cashback offers, and rate structures differ across lenders, comparing multiple options through a broker can reveal material differences in outcome.
DHOAS is an Australian Government scheme that assists current and former Australian Defence Force (ADF) members and their families to achieve home ownership. It forms part of the ADF's recruitment and retention program and is administered by the Department of Veterans' Affairs (DVA) on behalf of the Department of Defence. Under DHOAS, eligible members receive monthly subsidy payments toward their home loan. Entitlements are based on the length and type of service with the ADF. Borrowers must apply for a DHOAS Subsidy Certificate through DVA and take out a DHOAS home loan with one of the three approved providers, meeting scheme conditions including occupancy requirements, to receive subsidy payments.
There are three approved home loan providers under the Defence Home Ownership Assistance Scheme. Of the three, only one offers DHOAS home loans through mortgage broker intermediaries. While DHOAS provider choice is limited through the broker channel, ADF members often have broader lending needs beyond the DHOAS loan itself. A broker with access to a wide lender panel can assess the full picture, including scenarios where a non-DHOAS lender may be more suitable depending on LVR, loan structure, income type, or property circumstances.
Lender policies on ADF income vary, which is one of the reasons lender selection matters for defence borrowers. Some lenders accept 100% of PAYG salary and wages, 100% of eligible DHOAS subsidy entitlements for servicing purposes, and 100% of permanent ADF allowances confirmed to be in place for the term of the loan. Examples of allowances that certain lenders accept include submarine capability assurance payment, Special Forces operator sustainment, paratrooper allowances, flying disability allowance, maritime crew allowance, recruit instructor allowance, and training sustainment allowance. Defence Force Retirement and Death Benefit (DFRDB), Commonwealth Super, and DVA pensions may also be included in servicing calculations by some lenders. Other lenders may discount or exclude certain allowances entirely. The difference in how a lender treats ADF-specific income can significantly affect borrowing capacity, making lender comparison an important part of the process.
Some lenders accept ADF trainees on short-term employment, including those with less than 6 months of service, as standard PAYG borrowers for consumer loans such as car loans and personal loans. Serving ADF members aged 17 may be eligible for smaller loans for educational or tools-of-trade purposes, such as purchasing a car. Not all lenders have policies that accommodate short service histories or applicants under 18, so lender selection is particularly relevant in these situations.
Several lenders offer high-LVR home loans to ADF members, though the maximum LVR and associated conditions differ between them. Some ADF-specialist lenders allow borrowing up to 98% loan-to-value ratio (LVR) inclusive of Lenders Mortgage Insurance (LMI) for owner-occupied properties, and up to 95% inclusive of LMI for investment properties. Scheme-backed loans through DHOAS and Housing Australia can also be available at up to 98% LVR inclusive of LMI for owner-occupied purposes. The Australian Government's Housing Australia 5% deposit scheme is another option available to eligible borrowers. Because LVR caps, LMI pricing, and product eligibility vary across lenders, the total cost of a low-deposit loan can differ substantially depending on which lender is used.
ADF members may have access to several assistance programs depending on their circumstances. These include the Defence Home Ownership Assistance Scheme (DHOAS), the Housing Australia 5% deposit scheme, the Home Purchase Assistance Scheme (HPAS), the Home Purchase and Sale Expenses Allowance (HPSEA), First Home Owner Grants (which vary by state and territory), and stamp duty exemptions or concessions for eligible applicants (which also vary by state and territory). Eligibility for each program depends on individual circumstances, service history, and the state or territory in which the property is located. Some of these programs interact with lender policy in ways that affect product selection, loan structure, or LVR calculations.
Trustee for the O'Sullivan Family Trust ABN: 29 235 649 437, Credit Representative #482294 and is authorised under Australian Credit Licence 389328.
Disclaimer: This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Names & Locations of users have been changed to protect their privacy and are illustrative only.
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