View Full Version : Buying your own house
Doesn't it sound wonderful? No DHA to deal with!!
We are planning on buying our own place mid next year, since DH is retiring soon.
Has anyone heard about borrowing through Defence?? DH has been telling me wonderful things about interest subsidies, but I dont know if I believe him!
I know that we would get a Defence move, but do you still get disturbance allowance etc like a normal posting?
DHA offer "Defence Home Owner Scheme".
The subsidy is a rebate of the interest on a home loan, calculated at 40% of the average monthly interest of the loan over a 25 year loan repayment period.
How long you are entitled to the subsidy is dependent on time served, overseas deployments to warlike areas etc.
They are in the middle of re-vamping the scheme to entice members to buy their own house. I think at the moment the rebate is only applicable to the first $80K but I've heard they are taking about raising that to $300K. My knowledge of it all is pretty vague... you may want to check out the DHA site for more info.
Again, Im not sure about the new scheme but the with the current one, that initial $80K must be financed through NAB - the remainder can be financed through any lender.
I know that you must live in the house for a minimum period of time (cant remember how long though) so it cant be initially used for an investment property.
As for the disturbance allowance, Im not sure - i dont think they would give you much if any because you are moving at your own choice, not because of a posting or anything. I may be wrong on that one.
If the DHA site doesnt help you much, you could try Dept of Defence sites or the Pay and Conditions website.
The updated home owner scheme was anounced in the last budget, and I think it comes into affect after 1st July...DH brought home some info off the defweb. Apparently they have changed all the amounts you can borrow and made them more user friendly, for over 12 years service it is about $310,000if I remember correctly. We did actually use the original $80,000 defence loan for our first house purchase, but found it wasn't worth it, as we wanted to get rid of the NAB. They used to be the only bank that did the defence loan, but supposedly they are changing that too, or so we have heard. Not sure if you will be able to use it with any financial institution or just a select few, IYKWIM.
Think the minimum living there period still applies, it's usually 12 months.
Ask your DH to have a look at work for more info.
Oh and if you move on seperation from the defence force you will get paid disturbance alowance.
Yes i have heard we get the disturbance allowance for moving into our own house from a rental as well, even tho its not due to a posting. I think the rational behind that is they cant expect you to find a home to buy straight away when you get posted, so they accept that they will have to pay for you to move from a rental to your own.
Im not sure tho, because we are still renting so havent been thru the process yet :rolleyes: :laughing:
DP has heard that the army is in the process of bringing in some first home buyers home loan, where you can borrow up to 300-400K at a reduced interest rate. I dont know anything for sure yet... and knowing the defence system it may not ever eventuate :banghead:
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