DSH loans
A DSH Loan is Available to:
buy a house or unit or, in certain circumstances, a right of entry into a retirement village;
build a house or unit;
buy land and build a house;
complete a partly built house or unit;
enlarge, modify and/or repair your house or unit;
If you are seeking a DSH loan for this purpose you would need to consider whether the cost of the work justifies your costs in raising the loan.
refinance an existing mortgage, charge or encumbrance on a house or unit owned by the eligible person;
build, complete, enlarge, modify or repair your retirement village accommodation or discharge a debt in relation to it;
obtain granny flat accommodation on another person's property
Some forms of ownership of retirement village accommodation do not provide suitable security for a loan from Westpac. You should discuss your proposal with Westpac before you sign any contracts.
Certificates of Entitlement issued for granny flat or retirement village accommodation can be assigned to the provider of the accommodation in certain circumstances. You should discuss any such proposal with DSH.
Entitlement Requirements
In addition to being eligible, neither you nor your spouse may own another home. However, we will disregard ownership of another home by your spouse if we are satisfied that you are permanently separated. The word spouse refers to a man living with a woman as her husband, or a woman living with a man as his wife on a permanent basis.
You must intend to live in the home for which a subsidy is sought.
Where a property is to be co-owned with your spouse you are able to choose whether the ownership is to be held as joint tenants or as tenants in common. You should be guided by your legal adviser as to the preferred option.
Co-ownership with other persons can only be as tenants in common.
Lodging your application
If you do not already have an application form, they are available from your nearest Department of Veterans' Affairs office, by phoning DSH on Freecall 1800 722 000 or from your local Westpac branch (or Bank of Melbourne in Vic or Challenge Bank in WA).
The completed form can be lodged at any Department of Veterans' Affairs office or by posting it to DSH. If you are entitled to a loan, a Certificate of Entitlement will be sent to you. This certificate enables you to apply for a DSH loan from Westpac.
Westpac cannot provide you with a DSH loan unless you give them the Certificate of Entitlement.
How much can I borrow?
First DSH Loan
The maximum amount of a DSH loan is $25,000, but the actual amount you can obtain from Westpac depends on various factors, such as:
the value of the home;
the amount you are contributing as a deposit;
the ability to meet your instalments and other commitments;
the adequacy of security offered.
NOTE: Two or more eligible persons may pool their entitlements on the same property. Similarly, a person who has completed eligible service and is also a widow/widower of an eligible person, may pool entitlements. Separate applications must be made for each entitlement.
If you wish to borrow more than your entitlement, you may have access to amounts in excess of that entitlement from Westpac, on the same terms and conditions as other Westpac loan applicants.
Information on the amount you can borrow, the monthly repayments and application fees is available from Westpac.
Portability/Further DSH Loans
All new and existing DSH loans are portable from one home to another. Portability allows Westpac to move the current DSH loan (in the existing name/s) from one home to the next, without the need for you to apply for a Certificate of Entitlement from DSH. This arrangement also allows Westpac to take interim security for up to six months if there is a delay between the sale of the existing home and purchase or building of the next.
A Further Advance may be available to eligible persons who paid off a DSH loan on or after 9 December 1987, or who cannot arrange portability of their current loan as outlined above. An application for a Certificate of Entitlement must be lodged and various conditions apply. The amount of a Further Advance is restricted to the balance of the loan limit at discharge (i.e. the balance remaining after allowing for arrears/excess credits) over the unused term of that loan.
NOTE: Widow/Widower Advances, Essential Repairs Advances and Assigned Advances are not portable and are excluded from the Portability/Further Advance arrangements.
Additional Advances
If you are an eligible person who currently has a DSH loan and you have not borrowed the maximum amount, you may apply for the difference between your initial DSH loan and any additional advances granted and $25,000 to:
enlarge, modify and/or repair your house, unit or retirement village accommodation;
If you are seeking a DSH loan for this purpose you would need to consider whether the cost of the work justifies your costs in raising the loan.
refinance an existing mortgage, charge or encumbrance over your house, unit or retirement village accommodation;
pay road making charges if you are otherwise unable to pay for them.
If you do not already have an application form, they are available from you nearest Department of Veterans' Affairs office, by phoning DSH on Freecall 1800 722 000 or from any branch of Westpac or its divisions, such as Bank of Melbourne and Challenge Bank.
The completed form can be lodged at any Department of Veterans' Affairs office or by posting it to DSH.
Further information
Advances for Essential Repairs/Instalment Relief
If you have problems in meeting your obligations you should discuss those matters with your local Westpac branch.
In certain circumstances, if you are an eligible person who currently has a DSH loan, we may be able to provide special assistance to:
carry out essential repairs to the home;
reduce the DSH loan repayments.
In addition, for widows/widowers or dependent parents of eligible persons, assistance may be available to pay:
land rates;
home unit maintenance levy;
home insurance premium.
Transfer of Ownership
The subsidy can be withdrawn if you transfer ownership of the home. You should contact DSH for further details.
Excess Credits
You may pay more than the DSH loan repayment on your loan. These additional amounts are known as excess credits and may be withdrawn up to the limit of the account and can be used for any purpose.
Details are available from Westpac.
Cancellation of Subsidy on Death
The subsidy payable to Westpac in respect of a DSH loan may be cancelled three months after the death of the survivor of the eligible person and spouse. However, it is not intended that subsidy should be cancelled where there are special circumstances, such as where the occupant is a child of the veteran and is in needy circumstances.
Insuring your Home
You must insure your home if you have a DSH loan.
Defence Service Homes Insurance provides extensive insurance cover on building and contents at very competitive premiums.
This insurance is available to all eligible persons irrespective of whether they have a DSH loan.
Please ask us for a leaflet on insurance or phone 1300 552 662 for more information.
How to contact us
For all Defence Service Homes subsidised loan enquiries phone Freecall 1800 722 000.
All applications and correspondence should be addressed to:
The Manager
DSH National Processing Centre
GPO Box 1987R
Melbourne VIC 3001
Our facsimile number is (03) 9284 6800.
Confirmation of your eligibility
To obtain confirmation of your eligibility for a Defence Service Homes loan subsidy, complete Service Eligibilty Check and post it to us.
Please allow three weeks for your application to be processed.
