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Take out a DHOAS loan » Multiparty loans, eligible partners

Multiparty Loans, Eligible Partners

You are entitled to take out a DHOAS home loan with another party, or multiple parties, as long as you hold, either alone or with your partner, a 50% or greater interest in the property.

There are several possible scenarios for multiparty loans:

  1. A couple is party to a shared loan, and both of the partners are entitled to DHOAS subsidy.
  2. A couple is party to a shared loan, but only one partner is DHOAS eligible. 
  3. Two DHOAS-eligible borrowers share a loan and are not partners.
  4. A DHOAS-eligible borrower has a shared loan with someone who is not their partner.
  5. A DHOAS-eligible borrower has a shared loan with their partner AND someone who is not their partner.

These scenarios are explained in detail below. At any time that you have a non-partner as a co-borrower, you will be entitled to subsidy on only 50% of your total loan amount.

Change in relationship status

If you separate, you may continue to hold a joint DHOAS home loan with your ex-partner. You will have two years from the date of your separation to finalise your financial affairs, during which time we will not make any changes to your DHOAS subsidy payments. The date of your separation is the date that you consider yourself to have stopped being in a relationship.

If you intend to refinance the loan to remove your ex-partner’s name as a co-borrower, this is deemed a subsidy ceasing event. You will need to reapply for a new DHOAS subsidy certificate* to re-establish subsidy payments.  

If you continue to share the DHOAS home loan with your ex-partner after the grace period has finalised, your subsidy payments will be calculated on 50% of the original home loan balance.

It is important to notify DHOAS (via a Change of Circumstances form) of a change in relationship status as soon as possible to ensure your subsidy payments are calculated correctly. A delay in advising us could cause you to be overpaid.

*Note: If you no longer have access to apply for a subsidy certificate, there are some provisions under the DHOAS Act to enable further access if specific circumstances apply. If you are required to refinance your DHOAS home loan due to a relationship separation, please contact our Customer Service Team for more information and to check your eligibility.

 

Scenario 1: Both partners entitled to DHOAS

If both of you are eligible for DHOAS, you can take out a joint home loan and each receive a subsidy.

The benefit of you both using your DHOAS entitlement on a joint loan is that you increase your subsidised loan limit - the portion of your home loan that can attract a subsidy.

You will each be deemed to be liable for 50% of the joint home loan and you will each receive an equal subsidy payment amount, even where your individual eligible tier levels are different.

To calculate your entitlement, we first total your combined subsidised loan limits under your respective eligible tiers. We then calculate the total monthly subsidy that is payable on your joint subsidised loan limit.

Each member will receive a payment that is half the total monthly subsidy payable on their joint subsidised loan limit. This may result in one party receiving more than they would under their individual tier, and the other receiving less. 

Example 1: Joint loan equal to or greater than combined subsidised loan limit

One partner is eligible under tier 1, which has a subsidised loan limit of $364,916 and a maximum monthly subsidy of $532*, and the other is eligible under tier 2, which has a subsidised loan limit of $547,373 and a maximum monthly subsidy of $798*.

If they take out a joint home loan that is equal to or greater than their combined subsidised loan limit of $912,289, the monthly subsidy payable on the combined loan limit will be $532 + $798 which is $1,330*.

Each partner will receive 50% of $1,330, which is $665. This means the partner who is eligible under tier 1 receives more, and the partner eligible under tier 2 receives less.

Example 2: Joint loan that is less than the combined subsidised loan limit

One partner is eligible under tier 1, which has a subsidised loan limit of $364,916 and the other is eligible under tier 2, which has a subsidised loan limit of $547,373.

They take out a joint home loan of $500,000, which is less than their maximum, combined subsidised loan limit of $912,289.

Their subsidy is calculated on $500,000, the full amount of their home loan, all of which attracts a DHOAS subsidy. The subsidy amount payable on $500,000 is $729*.

Each partner will receive a monthly subsidy of $364*.

Please note: If your joint home loan amount is not much more than the subsidised loan limit of just one of the partner's tiers, you may wish to consider using the DHOAS entitlement of only one partner on the loan, and preserving the entitlement of the other partner for another time. Your choice depends on your personal circumstances.

 

Scenario 2: One partner is DHOAS eligible

Where only one partner is a subsidised borrower on a couple's shared loan, then the subsidised borrower will be taken to be liable for the whole loan and will be able to use the full value of their subsidised loan limit as if they were a sole borrower. 

Example

You're eligible under tier 3, and can receive a DHOAS subsidy on a subsidised loan limit of $729,831.

You take out a $850,000 home loan with your partner, who is not eligible under DHOAS.

For the purpose of DHOAS, you are deemed to be liable for the $850,000 loan, which is greater than your loan limit of $729,831.

This means you can receive the maximum subsidy payable on the loan, which is $1,064*.

 

Scenario 3: Two eligible non-partner borrowers

Where a subsidised borrower has a shared loan with another eligible person who is not their partner, in which both parties are jointly liable, then the subsidised borrower will be taken to be liable for half the loan. This is the capital amount against which the subsidised borrower's loan limit is compared.

This prevents the DHOAS subsidy that is paid to the subsidised borrower being used for the benefit of a person who is not entitled or who has a separate entitlement in his or her own right. 

Where two subsidised borrowers who are not partners share the same home loan, both subsidised borrowers must each own 50% of the property. Each subsidised borrower is required to meet the subsidy conditions outlined in Step 5. 

Example

You and another person that is also eligible for DHOAS, who is not your partner, take out a $900,000 home loan together for the same property. 

Each eligible person will be entitled to subsidy on 50% of the loan amount, regardless of their tier level and subsidised loan limit. This means each eligible member on the loan will be entitled to subsidy on a maximum of $450,000.

You are eligible for DHOAS under tier 1. Your tier 1 subsidised loan limit is $364,916. As this is less than your half of the loan amount, you will receive the subsidy on your tier 1 loan limit, which has a maximum monthly subsidy payment value of approximately $532*.

The other person is eligible for DHOAS under tier 3. The tier 3 subsidised loan limit is $729,831. As their portion of the loan is $450,000, and this is less than their tier 3 loan limit, they will be subsidised on $450,000 and receive a monthly subsidy payment of approximately $656*.

 

Scenario 4: Eligible borrower with non-partner

Where a subsidised borrower has a shared loan with a person who is not their partner, in which both parties are jointly liable, then the subsidised borrower will be taken to be liable for half the loan. This is the capital amount against which the subsidised borrower's loan limit is compared. 

This prevents the DHOAS subsidy that is paid to the subsidised borrower being used for the benefit of a person who is not entitled or who has a separate entitlement in his or her own right.

The arrangement applies even if the other borrower to the DHOAS recipient owns less than 50% of the property, however the subsidised borrower must own at least 50% of the property.

Example

You are eligible for DHOAS under tier 1. You take out a $900,000 loan with a parent.

The amount of the home loan that you will be deemed to be liable for is $450,000.

Your tier 1 subsidised loan limit is $364,916, for which you will receive the maximum monthly subsidy payment of $532*.

 

Scenario 5: Couple take out home loan with other co-borrower

You and your partner can take out a DHOAS home loan with another co-borrower as long as your share, together, in the property is at least 50%.

In this scenario, as a couple you are deemed to be liable for 50% of the home loan and your subsidy is calculated on this share.

If you and your partner are both eligible for DHOAS, as a couple you receive subsidy on the 50% of the loan that you're deemed liable for. From this 50% share, your individual subsidy payments will be calculated. For information on how your subsidy is calculated as DHOAS-eligible partners, please see Scenario 1: Both partners entitled to DHOAS.

*Subsidy amount based on the April 2024 median interest rate.


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