7/9 Using your DHOAS Lump Sum: What you need to know!
Welcome back to our series, “Understanding Your ADF Housing Entitlements,” where we’re dedicated to uncovering the hidden gems within your financial journey. Today, we’re turning our focus to a potent tool that can make a significant impact on your financial foundation – the Defense Home Ownership Assistance Scheme (DHOAS) Lump Sum.
DHOAS Lump Sum: A Path to Enhanced Financial Strength
The DHOAS Lump Sum is a key element that you should explore as part of your financial strategy. If you’ve completed your qualifying period and accrued entitlement to DHOAS, you might be eligible for a lump sum payment, providing an opportunity to bolster your financial position.
Understanding the DHOAS Lump Sum
With the DHOAS Lump Sum, you have the ability to convert up to four years of your service credit into a lump sum payment. However, it’s important to note that the lump sum is calculated based on the Tier 1 subsidy, regardless of your eligible tier. At present, the Tier 1 subsidy is $521, making a 4-year lump sum payment worth $25,000.
Guidelines for DHOAS Lump Sum Eligibility
To qualify for the DHOAS Lump Sum, there are certain criteria to consider:
You must not have purchased a property previously as either your primary home or an investment property.
The lump sum payment will not be disbursed prior to the settlement of a property, and therefore, it cannot be used as an upfront deposit. In such cases, you would need to manage the deposit through your cash flow.
Exploring the Potential
By tapping into the DHOAS Lump Sum, you’re embarking on a journey of financial empowerment. This sum can serve as a stepping stone to achieve your goals, whether it’s boosting your investment portfolio, paying down your mortgage, or securing your financial future.
Stay tuned for guidance as we coach you through the process of assessing your financial position and determining how to strategically play your entitlement cards.
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