DHOS Benchmark Interest Rate
The interest rate that applies to the DHOS home loan is called the "Benchmark Interest Rate".
The Benchmark Interest Rate has two components:
1. A fixed introductory rate for 12 months, from the time of settlement.
2. Variable rate, which applies after the first 12 months
Introductory Interest Rate
The fixed 12 month rate is based on NAB's "Introductory Interest Rate" (Honeymoon Rate).
When you take out your DHOS loan, the rate that will apply is the Introductory Interest Rate that is valid at the date of Settlement, not the rate valid at the time of initial application to the NAB.
A fixed rate means your repayments and subsidy amount will remain unchanged for 12 months.
After the 12 month fixed rate period has expired, the Benchmark Interest Rate will then be the Variable Rate as nominated for the Scheme.
Variable Rate
DVA calculates the Variable Rate for DHOS home loans monthly.
Using data provided by the Reserve Bank of Australia (RBA) at the end of the month, DVA averages the Variable Rates of the five largest lenders, and then compares that average against the NAB Variable Rate.
The Variable Rate for DHOS will be the lower of the two.
If the Variable Rate changes, so too will the amount of subsidy you receive.
Timing of Rate Change
The RBA provides DVA with information about lenders' Variable Rates, on the last business day of the month.
DVA recalculates the DHOS Benchmark Interest Rate (Variable) and advises NAB of the change.
The adjustment to your DHOS home loan repayment and subsidy amount takes effect two months after the advice from the RBA, to allow for administration.
Example
RBA advises DVA of changes in the Variable Rate on the last business day of October 2009, which is the 31st.
You will see this change in the DHOS Benchmark Interest Rate (Variable) reflected in your December subsidy payment.
Current Benchmark Interest Rates
Table - Variable Rate
Table of Benchmark Interest Rates (Variable). Based on a $80,000 DHOS home loan over 25 years.
Variable rate | Total Repayment | Monthly Subsidy | Customer Repayment | Effective Date |
| 6.49% | $539.67 | $109.20 | $430.47 | 1 February 2010 |
| 6.74% | $552.22 | $114.22 | $438.00 | 1 May 2010 |
| 6.99% | $564.91 | $119.30 | $445.61 | 1 June 2010 |
Table - Fixed Rate
Benchmark Interest Rate (Fixed). Based on a $80,000 DHOS home loan over 25 years.
Fixed Rate | Total Repayment | Monthly Subsidy | Customer Repayment | Effective Date |
| 6.54% | $542.17 | $110.20 | $431.97 | From 17 May 2010 |