DVA FACTS HAC01

Housing and Accommodation

Defence Service Homes Loans

Purpose

This fact sheet describes the Defence Service Homes Subsidised Home Loan Scheme available to eligible veterans and their widows and widowers.

How do I qualify?

You may qualify for a Defence Service Homes (DSH) loan if you:

· served with Australian defence forces for specified periods of service*;

· are a widow or widower of someone who served with Australian defence forces during the periods of qualifying service covered by the DSH Scheme;

· were part of the British Commonwealth forces, welfare organisations; or merchant marine in certain circumstances.

*Note: Persons whose first service in the defence force began on or after 15 May 1985 are not eligible for a DSH loan unless they were allotted for service in Namibia. Housing loan assistance for persons whose first service began on or after 15 May 1985 is provided through the Defence Home Owner Scheme. Details of the Defence Homeowner loans may be obtained from the Department of Veterans' Affairs on
1300 434 627.

How much can I borrow?

The maximum amount you can borrow for your first loan is $25 000 but the actual amount you can obtain depends on various factors, e.g. the ability to meet your instalments and other commitments.

Interest is capped at 6.85% p.a. but is variable each month at a rate 1.5% p.a. below the average market rate while the average market rate is below 8.35% p.a.

Westpac Banking Corporation is contracted to provide the subsidised housing loans, which generally must be secured by way of a first mortgage. Where the loan relates to a retirement village, security is at the discretion of Westpac. Not all RV forms of ownership are acceptable to Westpac. You should discuss your proposal with Westpac before you enter into any binding commitment.

What can I do with the loan?

You can use your DSH loan to:

· buy a house or unit or, in certain circumstances, the right of entry into a retirement village;

· build a house or unit;

· buy land and build a house;

· complete a partly built house or unit;

· enlarge, modify and/or repair your house or unit;

· re-finance an existing mortgage, charge or encumbrance on a house or unit owned by the eligible person;

· build, complete, enlarge, modify or repair your retirement village accommodation in certain circumstances or discharge a debt in relation to it;

· obtain granny flat accommodation on another person’s property. In this scenario, you must assign the loan to the owner of the accommodation so you also need to apply for a Certificate of Assignment.

DSH loans are portable from one home to another.

What else does this scheme offer?

The DSH Scheme also provides:

· additional advances (if you have a current loan and have not borrowed the maximum loan of $25,000);

· insurance for your home and contents;

· advances for essential repairs or instalment relief (in times of hardship).

Where do I obtain an application form?

You can obtain an application form:

· from your nearest Department of Veterans' Affairs office

· by phoning Defence Service Homes on 1800 722 000* (free call)

· by sending an email to Vic.DSHSubsidy@dva.gov.au

· from your local Westpac branch.

· From our web site www.dsh.gov.au

* If you use a mobile phone, refer to the Note at the end of this document.

Where can I lodge my application form?

You can lodge you application form at your nearest DVA office or post it to:

Defence Service Homes

GPO Box 1987R

MELBOURNE VIC 3001

Or by fax to (03) 9284 6800

If you are entitled to a loan you will be sent a Certificate of Entitlement. You then need to take your certificate to any Westpac branch to apply for the Defence Service Homes loan.

Other fact sheets

Other fact sheets related to this topic include:

· Defence Service Homes Insurance: HAC 02

· Home Maintenance Helpline: HAC 03

· HomeFront: HAC 04

· Home Support Loans: HAC05

More Information

If you require any further information about the home loans, please contact the DSH National Processing Centre on 1800 722 000 * (free call) or send an email to Vic.DSHSubsidy@dva.gov.au.

If you require any further information about home and contents insurance, please contact your local DSH Insurance office, telephone 1300 552 662 * (cost of a local call).

All DVA fact sheets are available on request from any DVA office or on the DVA web site at www.dva.gov.au/factsheets/default.htm.

If you need information on other DVA topics, contact your nearest DVA office or visit the DVA web site at www.dva.gov.au.

More Information, continued

DVA telephone numbers:

General Inquiries Connects callers from anywhere to their capital city State Office.	133 254
Non-metropolitan Callers Connects non-metropolitan callers only to the capital city State Office.	1800 555 254
Dialling from interstate Allows callers to contact any State office via a series of voice prompts.	1300 13 1945
Local Veterans’ Affairs Network (VAN) offices Connects callers with their nearest VAN office.	1300 55 1918

Note: * If you use a mobile phone, calls may be more costly. You are advised to use a normal phone (i.e. a landline phone) when ringing these numbers.