What is DHOAS?

The Defence Home Ownership Assistance Scheme (DHOAS) is a subsidy and home loan scheme available for current and former Australian Defence Force members. It is designed to assist ADF members and their families in repaying their defence home loan and achieve homeownership easier. To be eligible, you must have:

How much you're entitled to is calculated as a percentage of the average house price, and split into three tiers based on service length. These are:

If you're eligible, taking advantage of this scheme is one of the best things you can do for your property investment. Talk to our property investment coaches today and learn how you can make the most of your ADF housing benefits.

your adf housing entitlements

DHOAS Subsidy and Defence Home Loan Conditions

Subsidy Tier Minimum Permanent Service Minimum Reserve Service Subsidised Loan Amount Maximum Monthly Subsidy*
4 years
8 years
Up to $263
8 years
12 years
Up to $395
12 years
16 years
Up to $527

As of 1 July 2022, the AHP is $1,005,327. This figure is used to determine the 2022-23 subsidy tier values. *Estimated monthly subsidy values based on the July 2022 median interest rate. These monthly subsidy values fluctuate based on changes in the median interest rate.

You can see that the bad news is that you have to wait four years of service before you gain access to DHOAS. We recommend that you wait until you have done at least eight years of service (to achieve tier 2) before you pull the trigger. This is for either of two reasons:

1- So you can have a higher monthly subsidy (about an extra $130 per month stays in your pocket) or;
2- So you can use four years of your service in a lump sum – very useful to top up your cash buffer after you have purchased your home.

The real kicker is the main condition of receipt – you and/or your family must occupy the home for at least 12 months and you will need to be occupying the home and holding a valid subsidy certificate before your subsidy payments will commence.

dhoas dundofy tier rates

Lump Sum Advance Option

Under certain circumstances, you may be eligible to have your subsidy paid out as a lump sum. If you have accrued sufficient entitlement you can convert up to four years of your service into a lump sum payment.

This equates to $263 per month x 4 years [48 months] = $12,624
This can be especially useful if you're looking to fast track your housing investment, but will only be applicable in some situations.

Pro Tip for couples

If you have both served more than 8 years, you can get the subsidy for a loan up to $1,206,476 (2 x $603,238) and received a monthly allowance of $790 (2 x $395). Now that is a massive chunk off your monthly repayments!!

dhoas subsidy tier rates

DHOAS Home Loan Providers

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.

Australian Military Bank

Defence Bank Limited (Defence Bank)

National Australia Bank (NAB)

Bringing It All Together

Axon Property Group is dedicated to helping ADF members and their families get started in property investing. We take you from absolute zero to expert, giving you the knowledge and tools to succeed in property investing.

We can help you understand your defence home ownership assistance scheme loan entitlements and give you the best possible start with a defence home loan.

Start by watching our FREE ADF PROPERTY TRAINING!

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