As we come from both a property investment and ADF background, we’re in a unique position to discuss the special ADF housing entitlements that you are eligible to receive. These are loosely grouped into two categories – ‘assistance to purchase’ (HPAS/HPSEA) and ‘assistance to repay the loan’ (DHOAS). Now, let’s have a look at both of these – and put the terms against the acronyms. Keep in mind that while the information here is always available in the PACMAN for you to check up on anytime, it will not be laid out as simply as this!
As a member of the ADF, you are eligible for assistance to purchase your own home. HPAS comes in the form of a lump-sum payment of $16,949, before tax. Note that the amount you’re eligible for is affected by your share of ownership of the property (ie – joint ownership with a non-ADF member will see the amount halved).
To be eligible to receive an HPAS payment, you must meet the following criteria:
The best part? You are eligible to receive this lump sum payment BEFORE you need to pay your deposit as you are considered to have purchased a home when you have signed either the contract to purchase or the agreement for it to be built.
Learn more about HPAS eligibility and criteria here.
While we are strong advocates for a ‘buy and hold’ property strategy, there are some circumstances when it is untenable to continue ownership of a property. HPSEA is an allowance for the reimbursement of reasonable costs to an ADF member when they sell a home at the time they are being posted to a new location; or if they sell in their previous posting location and buy again in the new location.
An example of this would be if you own a home in Sydney, then get posted to Brisbane and want to buy a new home there. You would be eligible to receive HPSEA to reimburse the sale and purchase costs, including real estate agent’s commissions, stamp duty, solicitor’s fees, mortgage costs etc.
This is to compensate for the relatively high transactional costs of selling and buying. For this allowance, the amounts that you will receive through HPSEA vary, depending on your costs. All of this is covered in extensive detail within PACMAN.
Read our article: Can I use HPAS and HPSEA at the same time?
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 more easily.
The Australian Government has announced a $46.2 million expansion of the Defence Home Ownership Assistance Scheme, aiming to improve access to homeownership for eligible defence personnel earlier in their careers.
The changes will allow veterans who served on or after 1 July 2008 to access the scheme at any stage after they have left the service.
From 1 January 2023, the eligibility criteria for the scheme for each subsidy tier will be expanded by:
Basically, a DHOAS loan subsidises your home loan, for an amount and period of time based on how long you serve. As of March 2026, it contributes a monthly amount between $490 and $981 to your loan. Not bad for just being an eligible ADF member, right? The amount you are entitled to receive varies, based on a three-tier system – as seen in the table below.
The Australian Average House Price (AHP) is used to determine the subsidised loan limits under the three tiers. Each tier’s subsidised loan limit represents a percentage of the AHP, as shown here:
| Subsidy Tier | Minimum Permanent Service | Minimum Reserve Service | Subsidised Loan Amount | Maximum Monthly Subsidy* |
|---|---|---|---|---|
| 1 | 2 Years | 4 Years | $455,622 | up to $583 |
| 2 | 4 Years | 8 Years | $683,433 | up to $874 |
| 3 | 8 Years | 12 Years | $911,244 | up to $1166 |
You can see that you have to wait two years of service before you gain access to DHOAS. We recommend that you wait until you have done at least four to six years of service before you pull the trigger. This is for either of two reasons:
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.
To calculate your DHOAS subsidy payments you can use this DHOAS calculator.
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 $490 per month x 4 years [48 months] = $23,520. This can be especially useful if you’re looking to fast-track your housing investment, but it’s only applicable in some situations.
The DHOAS Scheme was designed to incentivise members to stay in the ADF – the longer you serve, the more entitlement you accrue and the longer you can receive assistance.
If you have both served more than 4 years, you can get the subsidy for a loan up to $1,241,070 (2 x $620,535) and receive a monthly allowance of $1,472 (2 x $736). Now that is a massive chunk off your monthly repayments!
Three core programs support ADF members at different stages:
Yes, HPAS starts the cycle on your first purchase, then HPSEA can apply on later sell/buy moves linked to postings. DHOAS is separate and can apply to an eligible loan regardless of HPAS/HPSEA status, provided you meet DHOAS rules.
Rules differ by scheme. Broadly:
When you discharge from the ADF, your access to housing entitlements changes depending on the scheme:
The Home Purchase Assistance Scheme (HPAS) is a program for ADF members providing a lump-sum payment of $16,949 to assist with purchasing a home at their current or new posting location. It requires the member to live in the home for the duration of their posting.
HPAS is a one-off payment (amount set by Defence) and is taxable, it’s included in your income and tax is withheld. Most members receive between $11,000 and $13,500 after tax, depending on their income bracket and marginal tax rate. If you co-own with someone who isn’t resident family, the amount is pro-rated to your share.
To receive HPAS, ADF members must not have received it before, must purchase a home in their current or new posting location, and must serve in that location for at least 12 months after purchase. For ARF members, they must remain in that category for the next 12 months.
No, you usually don’t need to repay HPAS when you sell your home. The payment is a one-off taxable benefit, not a loan.
However, you must meet the eligibility conditions at the time of purchase, which include:
If you breach these conditions (for example, by renting out the home straight away or being posted elsewhere immediately), Defence may revoke or recover the HPAS payment.
No, HPAS is payable only once during your service. Future transactions typically fall under HPSEA if linked to postings.
HPSEA reimburses the reasonable costs you incur when selling or buying a home because of a posting. Eligible expenses can include:
It does not cover ongoing costs such as council rates, utilities, insurance, or general maintenance. The intent is to offset the one-off transactional costs of moving due to Defence requirements.
HPSEA operates in a sell–buy–sell cycle linked to postings after your initial HPAS purchase. You may claim eligible costs each time you complete a qualifying sale or purchase within the time limits.
Generally, no. HPSEA is only available when you sell or buy a home in direct connection with a posting.
For example:
If you’re posted from Townsville to Darwin and you sell your Townsville home and buy one in Darwin, HPSEA can reimburse the sale and purchase costs. But if you sell or buy a home in a location unrelated to your posting, or outside the approved time window (usually within 12 months of posting), those expenses won’t qualify.
This rule ensures HPSEA is used only to offset the financial burden of compulsory moves due to Defence postings, not for voluntary property transactions.
HPSEA is available to ADF members who sell their home due to a posting to a new location. It reimburses costs such as real estate agent’s fees, stamp duty, and legal expenses, helping to offset the high transactional costs of selling and buying homes.
Yes, HPAS and HPSEA can be combined if the ADF member meets the eligibility criteria for both schemes. This combination can provide significant financial assistance for purchasing and selling homes due to postings.
DHOAS offers a monthly subsidy on home loan interest rates for ADF members and veterans, making home ownership more affordable. The subsidy amount depends on the length of service, with three tiers providing varying levels of financial support.
DHOAS (Defence Home Ownership Assistance Scheme) helps you reduce your monthly home loan repayments through an ongoing interest subsidy, rewarding your service over time.
HPAS (Home Purchase Assistance Scheme) gives you a one-off lump sum payment to help with the upfront costs of buying your first home, such as the deposit or legal fees.
HPSEA (Home Purchase or Sale Expenses Allowance) reimburses some of the costs associated with buying or selling a home when you’re posted to a new location — things like agent fees, stamp duty, or removal costs.
Recent changes to DHOAS include reducing the minimum service requirement for permanent and reserve ADF members and removing the access cap for veterans, allowing more members to benefit from the scheme earlier in their careers.
Yes. DHOAS is a separate scheme with its own eligibility and tier rules. Using HPAS doesn’t prevent you from accessing DHOAS if you qualify.
Your DHOAS subsidy can continue if you refinance, as long as you switch to another approved DHOAS home loan. The new loan must fully pay out your existing DHOAS loan, and you can’t cash out equity to reimburse yourself or cover non-loan expenses.
You’ll also need to notify DVA and apply for a new subsidy certificate before the new loan is finalised so your subsidy payments can continue without interruption.
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.
The DHOAS lump sum option allows eligible ADF members to convert up to four years of their service into a lump sum payment, which can be used for a home deposit or other home buying expenses. This can be particularly useful for fast-tracking housing investments.
DHOAS has three subsidy tiers based on the length of service. Tier 1 covers 40% of the average house price, Tier 2 covers 60%, and Tier 3 covers 80%, with higher tiers providing larger monthly subsidies.
Learn more about the DHOAS tiers and subsidy rates here.
Couples who both qualify for DHOAS can combine their entitlements to receive a higher subsidy. For example, if both partners serve for more than four years, they can receive a combined loan subsidy, significantly reducing their monthly mortgage payments.
Defence provides housing options and assistance that consider family circumstances (alongside rank and location). Entitlement specifics for HPAS, HPSEA and DHOAS then apply if you meet scheme criteria.
Often yes. For example, both partners may have separate DHOAS entitlements and can be co-borrowers on an eligible loan (subject to ownership and title rules). For HPAS/HPSEA, each person’s eligibility and cycle rules apply.
Clearance rates, cash rate moves and population figures are the foundation of any sound property decision. What they can’t show you is how thousands of other buyers will react to the same information next quarter. That gap is where investor mindset does its work, and it’s the reason two people can read identical data and reach opposite conclusions. Here’s how to use both.
Ask a room full of ADF members why they haven’t invested yet and you’ll hear the same answer more than any other: not enough money. It’s an honest answer, and more often than people expect, an unverified one. The gap between where you are and where you need to be is a calculation, not a feeling. Here’s how to find the real number, and what to do with the waiting period once you have it.
Next year kept becoming the year you’d finally start investing, and now you’re in your forties wondering if the window has closed. It hasn’t. Here’s what actually needs to change, and why it’s the plan, not your age.
An underperforming investment property feels like a disaster, but it rarely is one. Here’s how to work out whether it’s the asset, the timing or the strategy, and what actually needs to happen next.
We explain the rules that apply for DHOAS after leaving the ADF, what your final certificate means, and decisions to make before discharge.
What happens if your DHOAS subsidy certificate expires? Learn your options, reapplication rules, expiry dates and how to avoid losing your entitlement.
