DVA FACTS HAC05

Housing and Accommodation

Home Support Loans

Purpose

This fact sheet describes Home Support subsidised home loans that are available to eligible veterans and their widows or widowers.

How do I qualify?

You may qualify for a Home Support Loan if you are:

· an eligible person under the Defence Service Homes Act 1918

· eligible for a benefit under the Veterans’ Entitlements Act 1986 as the result of service with the Australian armed forces

· a widow or widower of a person mentioned above.

Note: If you already have a current Defence Service Homes loan, you cannot obtain a Home Support Loan if the outstanding balance of the existing loan is more than $10,000.

Note: If you have an entitlement to a Defence Service Homes loan, and there is no restriction on the use of that entitlement, then you cannot obtain a Home Support Loan unless your DSH loan entitlement, or the sum of that entitlement and any existing loan balance(s), is less than $10,000. We will determine the amount of assistance available and advise you accordingly.

How much can I borrow?

The maximum amount you can borrow is $10,000 but the actual amount you can obtain depends on various factors, e.g. your ability to meet the repayments and any other commitments. The minimum drawing at any one time is $1,000.

Interest is capped at 6.85% p.a. but is variable each month at a rate 1.5% p.a. below an average of the five largest banks’ standard variable housing loan rate while that average rate is below 8.35% p.a.

Westpac Banking Corporation is contracted to provide the subsidised housing loans. Generally, first mortgage security is required.

What can I do with the loan?

You can use your Home Support Loan to:

· assist with the cost of modifications or repairs to your home

· assist with the cost of maintenance to your home

· assist with the purchase of granny flat accommodation on another person’s property. In this situation, you must also apply for a Certificate of Assignment.

· assist with the cost of any other housing related purpose that encourages independent living.

Home Support Loans cannot be used towards buying or building a house, and are not portable from one home to another.

What else does this scheme offer?

· If you have not borrowed the maximum amount of $10,000, you can apply for the remaining balance of your entitlement at any time.

· You may insure your home and contents with Defence Service Homes Insurance.

Where do I obtain an application form?

You can obtain an application form:

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

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

· 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 your application form at your nearest DVA office or by post to:

Defence Service Homes

GPO Box 1987R

MELBOURNE VIC 3001

Or 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 Home Support Loan. You should not enter into any binding commitment until the Bank approves your loan application.

Other fact sheets

Other fact sheets related to this topic include:

· Defence Service Homes Loans: HAC 01

· Defence Service Homes Insurance: HAC 02

· Home Maintenance Helpline: HAC 03

· HomeFront: HAC 04

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.

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.