Australian Government - Department of Defence - Department of Veteran's Affairs

Subsidy certificates


 Subsidy certificates are proof of your eligibility under DHOAS. The following applies to their use: 

  • Your subsidy certificate is needed to take out a DHOAS home loan with one of the three Defence-nominated Home Loan Providers, either the Australian Military Bank, Defence Bank or NAB.
  • Once you have used your subsidy certificate to take out your DHOAS home loan (and to start subsidy on that loan) it is no longer valid and cannot be used again.
  • You can only receive a DHOAS subsidy on a loan taken out using an eligible subsidy certificate
  • You can only receive the subsidy on one DHOAS home loan at any given time. 
  • Special conditions apply to construction loans
  • If you sell your current subsidised home and you want to open a new DHOAS home loan and transfer your subsidy to it, you will have to apply for a new subsidy certificate to restart your payments. 
  • Changes to your existing DHOAS home loan, such as an increase in the balance, will also require a new subsidy certificate. 
  • A certificate is valid for 12 months only. The expiry date is on the certificate. There are no options to extend the certificate’s validity.
  • If your certificate expires and you need a replacement, you will need to apply to DVA for a new one. Your new application will be assessed in accordance with the legislation and regulations applicable on the date your application is received. 
  • Your subsidy certificate does not automatically entitle you to the following: 
    • A DHOAS home loan - approval of your home loan application is at the discretion of your Home Loan Provider, based on their lending criteria.
    • DHOAS subsidy – you need to take out a DHOAS home loan and meet the conditions of the Scheme before monthly payments can commence.

 

Access to subsidy certificates

You have the following access to subsidy certificates, depending on whether or not you are serving or separated from the ADF.

Serving members

While serving in the ADF, you have access to an unlimited number of subsidy certificates, one at a time, so long as you have retained your eligibility and entitlement to DHOAS at the time of application. This enables you to close or make changes to your existing DHOAS home loan and apply for a new subsidy certificate. This is necessary if you want to restart your subsidy payments on the new or changed home loan.

Reservists need to be mindful of effective service requirements. If you do not complete effective service you will be deemed separated and have access to one subsidy certificate only.

Separated from the ADF 

After you separate from the ADF, or you are deemed separated due to ineffective service, you have access to only one subsidy certificate. You must apply for this certificate within two years of separating, and you must use it within 12 months of its issue.

If you are separating, you need to consider carefully your use of this one subsidy certificate, especially if you have a construction loan being drawn-down in installments.

 

Construction loans and subsidy certificates

There are special conditions that apply to construction home loans involving multiple draw downs during the building process. For full details, please see Construction Loans.

 

Subsidy certificate validity and expiry

A DHOAS subsidy certificate is valid for 12 months from the date it is issued. The date of issue and the date of expiry is indicated on the certificate.

If your subsidy certificate expires and you require a replacement, you must submit to DVA an Application for Subsidy Certificate. Your new application will be assessed in accordance with the legislation and regulations that are applicable on the date your application is received.

There is no discretion under the DHOAS Act to extend the validity of a subsidy certificate beyond 12 months, in any circumstances.

 

One subsidy certificate only after separating

You can access only one subsidy certificate after you separate or after you are deemed separated due to ineffective service. You must apply for this subsidy certificate within two years of separating, and you must use it within 12 months of its issue.

There is no discretion under the DHOAS Act to extend the validity of a subsidy certificate beyond 12 months, in any circumstances.

If you close or make changes to your existing DHOAS home loan and you do not have access to another subsidy certificate, you will not be able to restart subsidy payments on the new or changed home loan. Your subsidy payments will cease.

Important: Please note that you can only apply for one subsidy certificate after separation, not only be issued one certificate after discharge. This means that once DVA has received your correctly completed application you have expended your once-only application opportunity whatever the outcome.


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