Dhoas
If you’re serving in the Australian Defence Force (ADF), you may be entitled to unique home loan benefits that aren’t available to the general public. From competitive home loan products tailored for Defence Home Ownership Assistance Scheme (DHOAS), these entitlements can make property ownership more affordable and achievable.
Buying a home as a member or veteran of the Australian Defence Force is a little different from a standard purchase. Through the Defence Home Ownership Assistance Scheme (DHOAS), eligible ADF members can access home loans that include a lump sum payment or a monthly subsidy on their interest payments, helping make home ownership more affordable.
A regular home loan is assessed purely on income, savings, and credit history. An ADF home loan, however, is linked to your service record and must be taken out with an approved DHOAS lender, currently Defence Bank, NAB, or Australian Military Bank. The subsidy amount depends on your tier level, which reflects the length of your service, and applies to the interest on your eligible loan.
Not all banks understand ADF life. Your pay structure, allowances, and postings can make lending a little more complex. Choosing a lender experienced with Defence members ensures your income is assessed correctly and your loan is structured in line with DHOAS rules, including occupancy and eligibility requirements.
In short, an ADF home loan isn’t just about getting a good rate; it’s about making your service work for you and setting yourself up for long-term financial success.
The Defence Home Ownership Assistance Scheme (DHOAS) is designed to make home ownership more achievable for current and former ADF members. Once you’ve secured an eligible home loan through an approved lender, the DHOAS subsidy is paid directly into your loan each month, helping to reduce your interest and overall repayments.
Your subsidy amount depends on your service tier and the size of your loan (up to the capped amount set by the scheme). The longer you’ve served, the higher your potential benefit. Get a better understanding of how the subsidy is calculated here.
Alongside DHOAS, ADF members may also be eligible for other ADF housing entitlements that can make buying or selling a home easier.
The Home Purchase Assistance Scheme (HPAS) offers a one-off lump-sum payment to help cover upfront costs like deposits, legal fees, or relocation expenses when buying your first home in your current posting area.
The Home Purchase or Sale Expenses Allowance (HPSEA) helps with incidental costs when you’re required to buy or sell a property because of a posting, easing the financial strain of Defence-related moves.
When used in conjunction with DHOAS, these benefits can help you enter the market sooner and manage transition costs more effectively.
Defence and DHOAS loans are different from typical home loans in that you must apply for one through one of three approved providers.
There are a range of DHOAS Loans available from the three providers, making it easy to find one that suits your needs. Additionally, many defence home loans have low rates and are quite flexible. If you’re not sure which one is right for your needs, Axon’s property coaches can help you choose.
Where lending support is needed, Axon can connect members with vetted professionals, such as defence mortgage brokers, making sure the loan serves the right property decision.
Frequent postings and relocations can make it difficult to navigate owner-occupancy requirements. These moves often force members to decide between renting out, selling, or buying again, each with its own financial implications. This highlights the importance of a sound-proof strategy.
Using rental income from DHA or other investment properties can also be tricky. Some lenders don’t fully understand Defence housing arrangements or how guaranteed rent fits into standard lending policies, which can impact borrowing capacity.
Finally, the complexity of entitlements like DHOAS, HPAS, and HPSEA adds another layer to the process. Knowing how these benefits interact with your loan structure is key to maximising your financial advantage.
That’s why it’s important to work with lenders and property professionals who understand Defence life, ensuring your home loan works with your service, not against it.
Your ADF housing entitlements aren’t just benefits, they’re tools that can help you build lasting wealth.
At Axon, we help Defence members and veterans use DHOAS, HPAS, and HPSEA strategically as part of a broader property and finance plan.
Our Property Coaches work with you to design a long-term strategy that aligns with your service life, financial goals, and posting cycles. From selecting the right loan structure and timing your subsidy certificate to choosing growth-focused locations, every step is tailored to maximise your Defence benefits and minimise risk.
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The Defence Home Ownership Assistance Scheme (DHOAS) is a program designed to help Australian Defence Force (ADF) members and veterans purchase their own homes. It offers a subsidy on home loan interest, making homeownership more affordable. Learn more about DHOAS.
To be eligible for DHOAS, you must be a current or former ADF member who has served on or after 1 July 2008. Eligibility also depends on meeting minimum service requirements and having accrued sufficient entitlement.
DHOAS subsidy tiers are based on the length of service. There are three tiers: Tier 1 (40% of the average house price), Tier 2 (60%), and Tier 3 (80%), with higher tiers providing greater subsidies.
Recent changes include reducing the minimum service required for access and removing the access cap for veterans, allowing them to access the scheme at any time after leaving the service.
Benefits of DHOAS include subsidised home loan interest rates, reduced financial burden for homeownership, and increased affordability for ADF members and their families.
To apply for DHOAS, eligible ADF members must obtain a subsidy certificate and apply for a home loan through one of the approved lenders: Australian Military Bank, Defence Bank, or National Australia Bank.
To receive the DHOAS subsidy, you must occupy the home as your principal residence for at least 12 months and hold a valid DHOAS subsidy certificate.
Yes, DHOAS can be combined with other housing schemes and government grants to maximise financial benefits for ADF members.
Under certain conditions, you can convert up to four years of your DHOAS entitlement into a lump sum payment (at Tier 1), which can be used for a deposit or other home-buying expenses.
To maximise your benefits under DHOAS, consider waiting until you qualify for a higher tier, use the lump sum advance option if applicable, and ensure you meet all eligibility and occupancy requirements.
ADF home loans are designed for current and former Defence members eligible under the Defence Home Ownership Assistance Scheme (DHOAS). Unlike standard loans, they must be taken through one of three approved lenders and include a monthly subsidy from the Australian Government, which reduces your loan interest and repayments. The subsidy amount depends on your service length (tier) and loan size.
No. Only approved DHOAS lenders, currently Defence Bank, National Australia Bank (NAB), and Australian Military Bank (AMB) can issue and manage DHOAS loans. The subsidy is paid directly into your loan account by the government each month.
To qualify for DHOAS, you (or your family) must live in the property for at least 12 months before renting it out. The scheme’s main purpose is to help Defence members buy and live in their own homes, not to purchase investment properties outright. Once you’ve met the occupancy requirement, the property may later be rented out in line with DHOAS conditions.
Frequent relocations can make long-term planning more complex, but they don’t automatically reduce borrowing capacity. However, lenders unfamiliar with Defence income and allowances may not assess your income accurately. Working with a Defence-experienced lender ensures that deployment pay, allowances, and stability of service are properly recognised when calculating your borrowing power.
Yes. DHOAS loans can only be taken out through three approved lenders: Defence Bank, NAB, and Australian Military Bank. These lenders are authorised by the Department of Veterans’ Affairs (DVA) to process DHOAS subsidy payments.
Yes, but only to another approved DHOAS lender if you want to continue receiving the subsidy. If you refinance with a non-approved lender, you’ll lose access to the DHOAS benefit for that loan.
Choose a lender that understands ADF income structures, allowances, postings, and entitlements. It’s important they can handle DHOAS requirements, flexibility for relocations, and features like offset accounts or variable rate options that support your long-term strategy.
Yes. Lenders can assess both incomes when applying for a joint home loan. If your partner also has ADF service, you may be able to combine entitlements for a larger subsidised loan and higher monthly benefit under DHOAS.
Axon’s Property Coaches specialise in helping Defence members understand and maximise their housing entitlements. They work alongside Defence-focused brokers and lenders to structure your DHOAS, HPAS, and HPSEA benefits effectively, ensuring your home loan fits within a broader strategy for long-term wealth creation.
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