Defence Home Ownership Assistance Scheme (DHOAS)
Making Home Ownership a Reality for ADF Members
Serving in the Australian Defence Force comes with unique challenges when it comes to buying property. Frequent postings, relocations, and the demands of service life mean that getting into the market can feel like it keeps getting pushed down the list. The good news is that if you are a current or former ADF member, you have access to one of the most valuable home ownership benefits in Australia.
The Defence Home Ownership Assistance Scheme (DHOAS) provides eligible ADF members with a monthly subsidy paid directly into their home loan. It reduces your interest repayments, helps you build equity faster, and in many cases increases what you can borrow. It is a benefit that rewards your service, and it is one worth understanding before you sign anything.
At Synergy Mortgage Brokers, we know the Defence community from the inside. Our director, Brendan Philp, is a veteran himself, which means when you sit down with our team, you are talking to people who genuinely understand what service life looks like and what it takes to plan around it. We help ADF members and veterans across the Sunshine Coast, Toowoomba, and beyond get the most out of DHOAS, working through your eligibility, comparing your loan options, and making sure everything is structured correctly from day one.
What Is DHOAS?
Defence Home Ownership Assistance Scheme explained
DHOAS is a federal government programme administered by the Department of Veterans' Affairs (DVA) on behalf of the Department of Defence. It provides a monthly subsidy on the interest portion of an eligible home loan, available to qualifying ADF members since 1 July 2008.
The scheme is designed to reward service. The longer you serve in the ADF, the more entitlements you accrue and the higher the monthly subsidy you can receive. It is not a one-off grant; it is ongoing support that continues for as long as you hold an active DHOAS home loan and meet the conditions of the scheme.
Who the scheme is designed to help
DHOAS is available to current and former members of the Australian Defence Force, including:
- Permanent Force members across the Army, Navy, and Air Force
- Reservists who have completed the required years of effective service
- Veterans who have separated from the ADF and remain eligible
- Eligible surviving partners of deceased ADF members
The scheme exists specifically because Defence families face challenges that most home buyers do not. Posting cycles, income that can be hard for standard lenders to assess, and time away from home all make the path to ownership more complicated. DHOAS is built to account for that reality.
How DHOAS differs from a standard home loan
With a standard home loan, you cover the full cost of principal and interest yourself. Under DHOAS, the government contributes a monthly subsidy directly to your lender on your behalf. This reduces your effective interest cost without requiring extra repayments from you. Some lenders will also count the DHOAS subsidy as income, which can increase your borrowing capacity when you apply.
How the DHOAS Subsidy Works
Monthly subsidy payments to the lender
Your DHOAS subsidy is paid each month directly into your home loan account. It does not come to you in cash. It reduces the interest component of your repayments and continues for as long as you hold a valid service credit, maintain a DHOAS home loan with an approved provider, and comply with the scheme conditions.
Service tiers and loan caps
DHOAS operates across three subsidy tiers based on your years of effective ADF service. Three tiers determine your subsidised loan limit, which is the maximum portion of your home loan that attracts a subsidy.
Limits are reviewed each financial year by the Minister for Defence, based on changes to the Average House Price, to keep pace with current market conditions.
How subsidy amounts are calculated
The subsidy is calculated at 37.5% of the median interest expense on the subsidised portion of your loan, based on a 25-year repayment period. This applies regardless of your actual loan term or the interest rate on your specific product.
If your loan balance is higher than your subsidised limit, the subsidy is calculated on your limit and you receive the maximum payment for your tier. If your loan balance is lower than your limit, the subsidy is calculated on your actual balance, so your monthly payment will be less than the tier maximum.
Who Can Qualify for DHOAS
Permanent Force service requirements
Permanent Force members need to have served on or after 1 July 2008 and completed a minimum of two consecutive years of service to complete the qualifying period. Tier progression for Permanent members is:
- Tier 1: 2 or more years of effective service
- Tier 2: 4 or more years of effective service
- Tier 3: 8 or more years of effective service
DVA progresses your tier automatically based on service reports from Defence. Permanent members do not need to submit documentation to trigger a tier increase.
Reserve service requirements
Reservists have a qualifying period of four years of effective service, with at least 20 paid days completed per financial year. Tier milestones for Reservists are:
- Tier 1: 4 or more years of effective service
- Tier 2: 8 or more years of effective service
- Tier 3: 12 or more years of effective service
DVA reviews Reservists' service at the end of each financial year and updates tier levels accordingly. Reservists also need at least one year of service credit before they can access a subsidy certificate.
Discharge, veterans and special cases
Former ADF members who have been discharged may still be eligible, depending on the service credits accrued before separation. Members discharged for medical reasons may qualify even without completing the standard minimum service. If your service history includes a combination of Permanent and Reserve service, or breaks in service, how your tier and eligibility are calculated becomes more complex. This is where speaking with an experienced broker early can save you from committing to the wrong structure.
We are unable to confirm your eligibility for DHOAS. For full eligibility criteria, visit dhoas.gov.au or call 1300 434 627.
How to Apply for a DHOAS Loan
Getting a subsidy certificate
Before taking out a DHOAS home loan, you need to apply to DVA for a subsidy certificate. This confirms your eligibility, tier level, and subsidised loan limit. If you are eligible for the lump sum option, which is a one-off payment applied directly to your home loan balance at settlement, you apply for this at the same time. As of February 2026, the maximum lump sum is $23,520, calculated at the Tier 1 rate regardless of your actual tier.
Choosing an approved lender
DHOAS home loans can only be provided by the three lenders appointed by Defence:
- Australian Military Bank
- Defence Bank
- NAB
Brokers aren't able to get accreditation with NAB or Defence Bank to write DHOAS loans, which means these two lenders can only be accessed by going directly to the bank. Synergy is accredited with Australian Military Bank, so if that's the right fit for your situation, we can take care of the application for you. If Defence Bank or NAB ends up being the better option based on rates, features, or loan structure, we'll let you know and point you in the right direction so you can approach them directly.
Occupancy rules and ongoing conditions
Once your loan is in place, you and your family must occupy the subsidised property for at least 12 months from the date your first subsidy payment begins. After meeting this requirement, you can move out, including renting the property, and continue receiving your monthly subsidy as long as your DHOAS home loan stays active. Tax implications may apply if you convert to a rental, so independent tax advice is recommended.
You must also notify DVA of any significant changes to your circumstances, including changes to your service status, relationship changes, or amendments to your home loan. Failing to do so can result in an overpayment you will need to repay.
We believe in transparent communication about both the advantages and potential drawbacks, ensuring you have complete information to make the right decision for your circumstances.
How Synergy Mortgage Brokers Helps with DHOAS
DHOAS has a lot of moving parts. Tier thresholds, approved lenders, occupancy conditions, lump sum decisions, and service credit calculations all need to be considered before you commit to a loan. Getting the structure right from the start makes a meaningful difference to the value you receive over time.
We work with ADF members and veterans to take the guesswork out of DHOAS. Here is what we help with:
- Tier and entitlement review: Eligibility for DHOAS is confirmed through DVA, but once you have your Subsidy Certificate, we can talk through what your current tier means for your borrowing position and whether it might be worth waiting for the next milestone before applying
- Home loan comparison: We compare your DHOAS loan against other home loan products on the market so you can see how the subsidy stacks up against what's available outside the scheme
- Loan structure: We make sure your loan is set up to make the most of your subsidy and borrowing capacity
- Lump sum and monthly subsidy options: We lay out how each option would work for your situation so you can make an informed call on which suits your long-term plans
- Construction loans and land packages: We assist with DHOAS construction loan applications and subsidy timing around drawdown milestones
- Refinancing support: If you are already on DHOAS and considering a refinance, we manage the process to protect your subsidy payments
- HPAS alongside DHOAS: If you may also be eligible for the Home Purchase Assistance Scheme, we can help you understand how the two entitlements work together
Our service costs you nothing. We are paid a commission by the lender when your loan settles, so you receive independent guidance and full application support at no out-of-pocket cost. We are also available for phone and video consultations, so distance is never a barrier, regardless of where you are posted.
Ready to Talk Through
Your DHOAS Options?
Whether you are buying your first home, building, or looking to refinance an existing loan, we are happy to have a straightforward conversation about what you are entitled to and how to access it.
Call us on 1300 324 588 or visit us at our Sunshine Coast (Maroochydore) or Toowoomba offices. You can also reach us at hello@synergymortgagebrokers.com.au or book a free consultation at www.synergymortgagebrokers.com.au.
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Frequently Asked Questions
Who is eligible for DHOAS?
DHOAS is available to current and former ADF members, including Permanent Force members, Reservists, and veterans, who have served on or after 1 July 2008 and completed the minimum qualifying period. For Permanent members, that is two years of consecutive service. For Reservists, it is four years of effective service with at least 20 paid days per financial year.
Which lenders offer DHOAS loans?
The three Defence-nominated lenders are Australian Military Bank, Defence Bank, and NAB. Your DHOAS subsidy can only be paid into a home loan held with one of these providers. Synergy Mortgage Brokers is accredited with Australian Military Bank, so if that lender suits your situation, we can manage the application for you. If Defence Bank or NAB looks like the better fit, we'll let you know so you can approach them directly.
How is the DHOAS subsidy calculated?
The subsidy is 37.5% of the median interest expense on the subsidised portion of your loan, based on a 25-year term. The amount you receive each month depends on your tier, your subsidised loan limit, and your actual home loan balance. It fluctuates with movements in the median interest rate, as reported monthly by CANSTAR.
Can I refinance and keep the DHOAS subsidy?
Yes, as long as you refinance with one of the three approved DHOAS lenders and the purpose is housing-related. Refinancing to a non-approved lender will end your subsidy payments. Be aware that refinancing also resets the 12-month occupancy requirement and may result in your subsidy being recalculated at current rates and loan limits.
What happens if I rent out the property?
Once you have lived in the property for at least 12 months from when your first subsidy payment began, you can rent it out and continue receiving monthly DHOAS subsidy payments. Your DHOAS home loan must remain active. It is worth seeking independent tax advice, as receiving a government subsidy on a rental property may have income tax implications.
Can DHOAS be used for investment properties or only a home to live in?
DHOAS is a home ownership scheme, so the subsidised property must be owner-occupied for at least 12 months from the start of your subsidy payments. After meeting the occupancy requirement, you can rent the property and continue receiving payments, provided your DHOAS loan remains open.
What happens to my DHOAS if I discharge or change service?
Discharging from the ADF does not automatically end your DHOAS entitlement, but it does change how it is assessed. You need to notify DVA, and your eligibility will be reviewed based on your accumulated service credits. If your situation involves a transition between Permanent and Reserve service or a break in service, we recommend speaking with us before making any decisions about your loan.
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