Home loans on a DVA pension or military super: what lenders look at

Start with which payment you get

Lenders treat each DVA payment differently, so it matters which one you get.

• Compensation payments are tax exempt: the Disability Compensation Payment, the Special Rate Disability Pension, permanent impairment payments and the War Widow(er)'s Pension. The Disability Compensation Payment closed to new claims on 01-07-2026.
• Incapacity payments replace lost earnings. DVA reviews them every year, they are generally taxable, and in most cases they stop at Age Pension age.
• The Service Pension is income support for veterans with qualifying service, from age 60 or earlier if you are permanently incapacitated and cannot work. Your income and assets affect the rate.
• The Veteran Payment is a taxable interim payment while DVA assesses a mental health claim.

Military super from the Commonwealth Superannuation Corporation (CSC) is separate. You can get it with a DVA payment, but it can reduce incapacity payments.

Sources (DVA): tax, compensation, incapacity, Service Pension, Veteran Payment, checked 06-10-2026.

What a lender wants to know

Is the income ongoing, is it taxed, and how old will you be when the loan ends?

A payment for a permanent condition reads differently from one DVA reviews each year, and lenders count tax-free income differently. We check a lender's policy against your payments before anything is lodged, because each application shows on your credit report.

The papers that prove your income

The right document matters more than people expect.

• From DVA: your Payment Summary, or a current statement of what you are paid each fortnight.
• From CSC: your pension entitlement letter. A list of past payments from the same portal is usually not enough.
• From your bank: statements showing the payments arriving and where your deposit came from.

Housing schemes you may still have

Leaving the ADF does not always end your housing help.

• DHOAS: if you served on or after 01-07-2008, finished the qualifying period and built up service credit. After you leave you can apply for a certificate only once, and you are paid at Tier 1 unless you served 20 years. A medical discharge has better rules. See our DHOAS page.
• Defence Service Homes: if your first service began before 15-05-1985 (or later, if you were allotted for service in Namibia) and you completed the qualifying service. It is a subsidised loan of up to $25,000 over up to 25 years.
• Defence Home Owner Scheme (DHOS): closed to new applications from 01-07-2010. If a condition DVA has accepted stopped you applying in time, or you were allotted for 1990-91 Gulf War duty, ask DVA about a limited route through DHOAS. Surviving partners can ask too.

Sources: DVA, loans and insurance; dhoas.gov.au (certificates, DHOS); dsh.gov.au (lending, eligibility); checked 06-10-2026.

A home loan can change your pension

Property can affect an income support payment.

DVA says property you own, in full or in part, may affect an income support payment. Tell DVA when your circumstances change, and get advice before you buy, sell or borrow. Compensation payments are not income support and work differently (DVA, your property).