Australian Government, Department of Veterans' Affairs
Housing

DEFENCE SERVICE HOMES SCHEME

The Defence Service Homes (DSH) Scheme provides housing benefits to eligible veterans and their dependants. The benefits are:

Subsidised housing loans

The home loan can be up to $25,000 with the borrower paying a Government-subsidised interest rate capped at a maximum of 6.85% p.a.

These loans are provided by Westpac Banking Corporation and are subject to lending criteria. Fees and charges apply. Full details of terms and conditions for Defence Service Homes loans are available on application from Westpac.

The loan can be used to assist in buying or building a home or to carry out modifications and repairs to an existing house. The loan can also be used to finalise a right of residence in a retirement village in certain circumstances.

To be eligible for the loan a person must be a veteran with qualifying service under the Defence Service Homes Act 1918 (the DSH Act) or the widow or widower of such a veteran.

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Qualifying service is:

  • service in either of the two World Wars or in subsequent operational areas
  • three years defence service if the service commenced before 17 August 1977 and ended on or after 7 December 1972
  • more than six years defence service if the service commenced on or after 17 August 1977 but not if the person's first service commenced after 14 May 1985*
  • defence service with the Australian contingent in Namibia
  • defence service (and warlike service) in operational areas where the veteran commenced service in the Australian Defence Force before 15 May 1985.

Special provisions exist for those persons prematurely discharged as medically unfit.

*A person who enlisted with the Defence Force on or after 15 May 1985 may be eligible for assistance under the Defence HomeOwner Scheme which is administered by the Defence Housing Authority.

For more information:

Back to main Housing page.

Summary of other benefits under the Defence Service Homes Scheme

The Home Support Loan assists eligible veterans, widows and widowers with the cost of maintenance and modifications to their own homes, and other housing-related purposes that encourage independent living.

Building insurance offers broad cover at competitive premium rates with a fast, efficient claim service. The insurance is available on homes owned by persons who are eligible under the DSH Act, Australian veterans eligible under the Veterans' Entitlements Act 1986 or who have a Defence HomeOwner loan. This link is to the Defence Service Homes website.

Home contents insurance offers comprehensive insurance developed especially for the needs of veterans and service personnel and is underwritten by QBE Mercantile Mutual. This link is to the Defence Service Homes website.

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For all subsidised loan inquiries, phone 1800 722 000 (free call).

Postal address:

The Manager
DSH National Processing Centre
GPO Box 1987R
MELBOURNE VIC  3001

For all insurance enquiries, please phone 1300 552 662 (cost of a local call) or contact the relevant State Office of the Department of Veterans' Affairs.

See separate page for DSH Insurance Scheme.

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