Defence Home Ownership Assistance Scheme (DHOAS) — Guide for ADF Members (2026)
The Defence Home Ownership Assistance Scheme (DHOAS) is a federal government program that subsidises home loan interest for eligible current and former members of the Australian Defence Force (ADF). DHOAS reduces the effective interest rate on a home loan, lowering monthly repayments for ADF families.
DHOAS is administered by Defence Housing Australia (DHA) and operates separately from civilian first home buyer schemes.
How DHOAS Works
Unlike the First Home Guarantee or Help to Buy, DHOAS does not reduce the deposit requirement or take an equity stake. Instead, it provides a monthly subsidy paid directly to your lender that reduces the effective interest on your home loan.
The subsidy is based on your years of eligible service and your loan balance. It is calculated monthly and applied against the interest charges on the loan.
DHOAS Subsidy Tiers (2026)
Subsidy rates are based on accumulated service and the tier of housing assistance:
| Service Tier | Years of Service | Maximum Loan Subsidy |
|---|---|---|
| Tier 1 | 2–4 years | Applied to a loan up to ~$216,000 |
| Tier 2 | 4–8 years | Applied to a loan up to ~$431,000 |
| Tier 3 | 8+ years | Applied to a loan up to ~$648,000 |
Exact maximum subsidy loan amounts are updated by the government periodically. Verify current figures at dhoas.gov.au.
The subsidy rate is the RBA cash rate indicator minus a small margin. As the cash rate changes, the subsidy adjusts accordingly.
Eligibility Requirements
To access DHOAS:
Current members:
- Must be an Australian citizen or permanent resident in the ADF
- Must have completed the minimum eligible period of continuous full-time service (varies by tier)
- Must not be serving in a posting that provides subsidised housing
Former members:
- Must have been discharged within the past 5 years
- Must have completed the minimum eligible service period
Property requirements:
- The property must be in Australia
- It must be used as your principal place of residence
- Investment properties do not qualify
Can DHOAS Be Combined with Other Schemes?
DHOAS can be used alongside some first home buyer benefits, but not all:
| Combined with | Possible? |
|---|---|
| First Home Owner Grant (FHOG) | Yes, if property is a new home |
| First Home Guarantee (FHBG) | Generally yes — check with DHA |
| Stamp duty exemptions | Yes — assessed separately |
| Help to Buy | Check with DHA — equity sharing may conflict |
ADF members should speak with a Defence Housing Australia adviser or a mortgage broker familiar with ADF benefits to understand how their entitlements interact.
DHOAS vs Standard Home Loan — Illustrative Saving
Example — $500,000 loan, Tier 2 eligibility, 6.00% standard rate:
| Item | Without DHOAS | With DHOAS |
|---|---|---|
| Loan amount | $500,000 | $500,000 |
| Standard rate | 6.00% | 6.00% |
| DHOAS subsidy (illustrative) | — | ~1.00%–2.00% effective reduction |
| Effective rate | 6.00% | ~4.00%–5.00% |
| Monthly repayment saving | — | ~$480–$940/month |
Subsidy figures are illustrative only. Actual DHOAS subsidy depends on service tier, loan balance and RBA cash rate. Contact DHA for current calculations.
How to Apply
- Check eligibility at dhoas.gov.au or through your ADF pay and conditions branch
- Obtain a DHOAS certificate of entitlement from Defence Housing Australia
- Apply for a home loan through a DHOAS-approved lender
- Provide your certificate to the lender — the subsidy is paid directly to the lender monthly
DHOAS-approved lenders include major banks and some specialist lenders. Interest rates and loan features differ between approved lenders.
Frequently Asked Questions
Is DHOAS available for investment properties? No. DHOAS requires the property to be your principal place of residence. Investment properties are not eligible.
Can I use DHOAS if I’ve left the ADF? Yes, if you were discharged within the past 5 years and meet the minimum service requirements. After 5 years post-discharge, DHOAS entitlement generally expires.
Does DHOAS affect my civilian mortgage borrowing power? The DHOAS subsidy reduces your effective interest cost, which may improve your serviceability assessment in the eyes of some lenders. Discuss this with your lender or mortgage broker.
Where can I find current DHOAS subsidy rates? Current subsidy rates, tier thresholds and approved lenders are published at dhoas.gov.au. Subsidy rates change as the RBA cash rate changes.
Related Guides
- Government Home Buying Schemes — Complete Guide
- Home Guarantee Scheme — All Three Guarantees
- First Home Owner Grant
- First Home Buyer Hub
This article provides general information only. DHOAS eligibility, subsidy rates and scheme details are administered by Defence Housing Australia and may change. For current information, visit dhoas.gov.au. For advice tailored to your situation, speak with a licensed mortgage broker or financial adviser. Find one through MoneySmart.