Defence Force Home Loans
If you’re a part of the defence force, the government and the lenders are willing to offer you the best possible home loans and discounts. Your service in the Australian army, navy, or air force won’t stop you from getting your dream home. In fact, it would just ease the way. Professionals that are a part of the ADF or Australian Defence Force get subsidies from the Defence Home Ownership Assistance Scheme. At Mortgage Providers, we will provide all the assistance that you need to get the best loan deal. We will ensure that you get the discounts you’re due and will apply to the right lenders on your behalf, for your defence force home loan.
Who Are Eligible?
Defence home loans have subsidised interest rates under the DHOAS. Naturally, there’s a strict eligibility criteria. If you’re not eligible for a defence force home loan, you can still apply for a traditional home loan. Here’s a brief explanation about the eligibility criteria. Our mortgage brokers will explain in detail and help you get the best possible loans.
- You’re eligible if you’ve served the ADF in the past two years. You don’t have to be in active service right now. If you’ve retired from service within that two year period, you’re eligible.
- You need to complete a minimum qualifying period. In some cases, Foreign Service would also be required.
- You need to possess service credit, which is awarded to you after you’ve completed the minimum qualifying period. The minimum period is 4 years in Permanent Service or 8 years in Reserves. After you’ve completed this obligation, you can get the loan at any time. There are ways in which a reservist can reduce their qualifying period. They need to serve actively for more than 6 months in a particular financial year. That would reduce the qualifying period by 2 years.
- You’ll start accumulating minimum service credit after a month of service. These service credits can be exchanged for subsidy payments. The more credits you have, the higher subsidy you will get.
- There’s a likelihood that you’ll be asked to continue serving for 12 months after the loan is granted. If you intend to leave the service within that period, you might want to check whether that would be a requirement for you.
There are certain circumstances that can affect your eligibility for the defence home loan. If you have moved from being a permanent member of ADF to a reservist, you might face some problems. If you’ve taken a break from the ADF, you might have to start over and serve the minimum qualifying years again. There are other factors that might affect your eligibility, which is why you need our help.
Things You Need to Consider
It’s vital to borrow only as much as you can pay back. With a defence force home loan, that’s especially important. Before you approach us, you should ask yourself the questions listed below. You should also get the subsidy certificate from the DHOAS website and give it to us. We will forward it to the lenders.
- What is your maximum budget for buying a home?
- How much money do you need?
- Would you be able to pay back the money comfortably?
- How long a loan period would you need?
If you want to know more about our defence force home loan, all you need to do is get in touch with us at Mortgage Providers. You can do that by filling in this contact us form or calling us at 1300 65 6600. You can ask for free expert advice or enquire about the loan. We will reply as quickly as possible with answers.