Please note that the Defence Service Homes Lending Scheme has been superseded by the Defence Home Ownership Assistance Scheme. Unless you served in the defence forces prior to 15 May 1985 (or in Namibia) this information may not be relevant to you. More information is available on the Defence Home Ownership Assistance Scheme website.

Your guide

This plain English guide to completing the Application for a Certificate of Entitlement for a Defence Service Homes Subsided Loan will help make the application process as easy as possible. Don't forget if you need any advice or assistance, we're only a phone call away. Contact us any time.

If you have a current Defence Service Homes loan on your home, an Additional Advance may be available to enlarge, modify or repair your property or to refinance a current mortgage, charge or encumbrance on the home. You can also apply for an Additional Advance entitlement in conjunction with a portable loan entitlement.

Defence Service Homes loans are provided by the Westpac Banking Corporation. Defence Service Homes will issue you with a certificate of entitlement once your application has been processed. Westpac needs this certificate to consider an additional subsidised Defence Service Homes loan.

The loan

The maximum additional loan available is the difference between the total of the amount already advanced and $25 000, and is normally repaid over the balance of the term of the original loan, or up to 25 years. The interest rate on the loan is capped at 3.75% per year. However, the actual interest rate on the loan is based on an average monthly interest rate of all market lenders, calculated monthly, less 1.5%, or 3.75% whichever is the lower rate.

All relevant questions on the application form should be answered and the form must be signed. Incomplete answers will slow down the processing of your application.

Section 3

Qualifying service details

You must complete this section if you have been discharged from the forces since Defence Service Homes last established your eligibility.

Section 10

Ownership details (other properties)

You are not entitled to a Defence Service Homes loan if you or your spouse own another home solely or as a joint tenant. However, we can still process your application if you intend selling the home, or converting ownership to a tenants-in-common share holding. We will then issue the certificate of entitlement when the contract for the sale of that home becomes unconditional, or the change in ownership becomes effective.

Section 12


Copies of relevant documents should be attached to the form, unless you have sent them with an earlier application.

Once all our requirements have been met, we will send you a certificate of entitlement. You then need to apply to Westpac for the loan. The bank will determine the actual amount you can borrow. You will have to meet lending criteria, which includes your ability to repay the loan and your equity in the property.

If you need additional finance, you may be able to obtain a Supplement Loan from Westpac at their first mortgage rates. You may borrow from another lender but this may involve additional fees.

Terms and conditions for DSH and Supplement Loans are available on application to Westpac.

If your DSH loan application is approved by Westpac, the Bank will normally secure the loan by extending the first mortgage over the property. In some cases, a new mortgage may be required.

Important: If you have a current second mortgage on your home, your second mortgagee will have to agree to the proposed new security arrangements. Where a new mortgage is necessary, Westpac may require your existing second mortgagee to execute a Deed of Priority, effectively giving the new Westpac mortgage priority over the existing second mortgage.

Westpac will advise of the fees and charges, including Establishment Fee(s), that apply to DSH and Supplement Loans. You should also confirm with the Bank the amount of Government charges, such as stamp duty, mortgage registration fees etc. that are payable in your case.

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