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DHOAS

How & When To Use DHOAS: Explained

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.

What is DHOAS & Why does it exist

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.

The Australian Government has announced a $46.2 million expansion of the Defence Home Ownership Assistance Scheme, aiming to improve access to home ownership for eligible defence personnel earlier in their careers.

 

Eligibility Explained Simply

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:

  • Halving the minimum service required for access by current ADF members from four to two years for permanent service, and from eight to four years for Reserve service.
  • Removing the access cap altogether for veterans who have left the service (previously five years).

To be eligible, you must have:

  • Served on or after 1 July 2008
  • Completed a qualifying period of service and accrued sufficient entitlement

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:

  • 40% of the AHP at Tier 1
  • 60% of the AHP at Tier 2
  • 80% of the AHP at Tier 3 (the maximum benefit!)

Use the DHOAS Calculator to work out your entitlement.

How does dhoas work?

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

Defence Bank Limited (Defence Bank)

nab logo

National Australia Bank (NAB)

DHOAS and investment properties

DHOAS home loans must be secured by the subsidised property and can only be used for buying a home, buying land, building a home, renovating or extending your home, or refinancing a loan for one of these purposes.

It’s important to remember that you must occupy the property for at least 12 months before converting it into an investment. This requirement ensures the scheme remains focused on helping ADF members achieve home ownership, not investment gain. Buying a home right before a potential posting can complicate things, so timing your purchase carefully is key.

steps to accessing your entitlement

  1. Check Your Eligibility
    Confirm you’ve served on or after 1 July 2008 and meet the minimum service time, 2 years full-time or 4 years Reserve. You can check your record and entitlement details through DVA.
  2. Apply for a Subsidy Certificate
    Submit your Application for Subsidy Certificate to DVA. This confirms your tier benefit level. The certificate remains valid for 12 months from the date of issue. If this certificate lapses, you will need to reapply. 
  3. Choose an Approved Lender
    DHOAS loans are only available through Defence Bank, NAB, and Australian Military Bank. You can compare your options or speak with Axon and your lender to find the right fit for you.
  4. Secure Your DHOAS Home Loan
    Use your valid subsidy certificate to apply for a home loan with your chosen lender. Once approved, your DHOAS benefit is linked directly to your mortgage.
  5. Occupy the Property
    You (or your family) must occupy the home for at least 12 months before renting it out.
  6. Receive Your Monthly Subsidy
    The government pays your monthly subsidy directly into your home loan. 

Maximising your dhoas benefits

Getting the most out of your DHOAS entitlement comes down to timing, structure, and strategy. If you’re close to reaching the next tier, waiting a little longer can significantly increase your monthly benefit.

ONGOING VS LUMP SUM

Deciding between an ongoing subsidy and a lump sum depends on your goals. The lump sum can help with upfront costs, such as deposits or moving expenses, but it permanently reduces your future entitlement. For long-term savings, the monthly subsidy typically yields a greater financial benefit over time.

SMART PAIRING & LOAN CHOICES

Your DHOAS benefit stretches further when combined with other entitlements, such as HPAS or HPSEA, and structured with the right loan product. Each approved lender offers different rates and offset options, so choosing carefully or working with a Defence-specialist broker ensures your setup aligns with your financial plan.

By timing your certificate, choosing the right tier, and reviewing your setup each year, you can maximise your subsidy and build wealth faster, turning your service benefits into a decisive financial advantage.

Frequently Asked Questions

Understanding DHOAS:

DHOAS (the Defence Home Ownership Assistance Scheme) is a government program that helps current and former ADF members (and their families) buy a home by providing a monthly financial subsidy paid directly into a DHOAS-approved home loan. The scheme supports Defence members who’ve completed the required service period and is designed to strengthen ADF recruitment and retention by making home ownership more achievable.

DHOAS converts the service credits you’ve earned through your ADF service into a monthly interest subsidy that is paid directly into a DHOAS-approved home loan. After meeting the minimum service requirement and receiving a Subsidy Certificate from DVA to confirm your tier, you take out a DHOAS home loan with one of the Defence-nominated lenders. Once your loan is active and authorised, the government pays a monthly subsidy into your mortgage, reducing your interest costs and making home ownership more affordable for Defence families.

Your maximum DHOAS entitlement depends on your subsidy tier, which is based on how long you’ve served in either Permanent or Reserve service. For 2025–26, entitlements range from Tier 1 (after 2 years Permanent or 4 years Reserve) to Tier 3 (after 8 years Permanent or 12 years Reserve). Tier 3 provides the highest benefit. Check our calculator for accurate figures for each tier.

ADF members may be eligible for a range of housing and financial benefits beyond DHOAS. Common ADF housing entitlements include HPAS (a lump sum to help with the upfront costs of buying a home), HPSEA (reimbursement of some buying and selling expenses during postings), and RA (subsidised accommodation support when you’re posted away from your home).

You may still be able to access the ongoing monthly DHOAS subsidy, as there are processes for transitioning from older schemes like DHOS. However, eligibility can vary case by case.

What is clear is that you cannot access the DHOAS lump sum if you’ve previously received assistance under DHOS or any earlier Defence housing subsidy scheme.

Eligibility & Conditions:

You may qualify for DHOAS if you’re a current or former member of the Australian Defence Force (ADF) and have met the scheme’s minimum service requirements. To be eligible, you must have served in the ADF on or after 1 July 2008.

The minimum qualifying period for a Tier 1 service credit is:

  • Two years of continuous full-time Permanent ADF service, or
  • Four years of effective Reserve service, completing at least 20 paid days per financial year.

If you discharge from the ADF, you can still use your DHOAS entitlement, as long as you’ve completed the qualifying period and earned the required service credit.

The scheme is designed to support both current and former ADF members (and their families) in achieving home ownership. However, your subsidy payments and service credit will eventually end after a set period once your service ceases.

In some cases, you may be able to restart your payments later if you meet specific conditions outlined under the scheme’s rules.

Yes. While the main DHOAS entitlement belongs to the serving member, eligible partners can also be included through certain loan structures. The scheme allows for ‘multiparty loans’, which means a partner who isn’t in the ADF can be part of the home loan with the eligible member.

Yes, you can combine your DHOAS with other grants such as the FHOG and Aus Gov 5% Deposit Scheme

Yes, you can use your DHOAS entitlement to buy land and fund the construction of a new home through a construction loan. The scheme includes specific guidelines for DHOAS-approved construction loans, ensuring the loan structure and payment stages meet the program’s requirements.

Yes, you can still access DHOAS even if you already own another property. The scheme doesn’t require you to be a first-time homeowner. However, you can only receive the DHOAS subsidy on one home loan for one property at a time, and the subsidised property must be owner-occupied.

This means you (or your dependants) need to live in the home for at least 12 months once your subsidy payments begin.

Yes. To receive monthly DHOAS subsidy payments, you must meet the scheme’s occupancy requirements. This means you (or your dependants) need to live in the subsidised home for at least 12 months from when your payments begin.

Failing to meet the occupancy requirement can result in your subsidy payments being stopped.

Yes. Once you’ve lived in your DHOAS-subsidised home for at least 12 months, you can rent it out and continue receiving your monthly subsidy, as long as your DHOAS home loan remains active.

Loans, Lenders & Applying:

You can only access the DHOAS monthly subsidy by taking out a DHOAS-approved home loan with one of the three Defence-nominated Home Loan Providers. Your subsidy payments are made directly into this loan.

Here are the three approved lenders for the Defence Home Ownership Assistance Scheme (DHOAS):

  • Australian Military Bank
  • Defence Bank Limited (Defence Bank)
  • National Australia Bank (NAB)

Applying for DHOAS happens in two main stages:

  1. Get your Subsidy Certificate – Submit an Application for Subsidy Certificate to the DVA. This confirms your service credit and determines your entitlement tier.
  2. Start your subsidy payments – Take your certificate to a DHOAS-approved Home Loan Provider to secure your loan. Then, complete a Subsidy Authorisation Request Form with the DVA to confirm you meet all conditions. Once approved, your monthly subsidy payments will begin.

The DVA doesn’t specify an exact timeframe for processing DHOAS Subsidy Certificate applications. Processing times can vary depending on the volume of applications and whether all your service details are correctly recorded, so it’s best to apply well in advance of when you plan to take out your DHOAS home loan.

To apply, you’ll first need to complete the Application for Subsidy Certificate form. The DVA will use this to review your service records and confirm your eligibility.

Once your DHOAS-approved home loan is finalised with one of the nominated lenders, you must then submit a Subsidy Authorisation Request Form to the DVA. This confirms you meet all scheme conditions and allows your monthly subsidy payments to begin.

You can switch lenders and keep your DHOAS entitlement, but you’ll need to follow a few key steps:

  1. Close your existing DHOAS loan with your current provider.
  2. Apply for a new DHOAS-approved home loan with your chosen Defence-nominated lender.
  3. Submit a new Subsidy Authorisation Request Form to the DVA once your new loan is in place.

You won’t need to meet the 12-month occupancy requirement again if you’re staying in the same home, but your payments will be reassessed, and you’ll be responsible for any refinancing or transfer costs.

Your DHOAS subsidy can be suspended or cancelled if you breach the scheme’s strict conditions. Common mistakes include:

  • Using the loan for the wrong purpose: DHOAS funds can only be used for home-related costs, buying, building, renovating, or refinancing. Using them for things like investments, cars, or holidays will end your subsidy.
  • Improper use of redraw facilities: If your loan balance reaches zero or goes into credit (even briefly), your subsidy payments will stop.
  • Letting your certificate expire after discharge: Once you’ve left the ADF, you generally only get one DHOAS certificate. If it expires before your subsidy starts, you may lose access to the scheme.
  • Not reporting changes to DVA: Failing to tell DVA if you move out before the 12-month occupancy period or your circumstances change can lead to subsidy cancellation and repayment of any overpaid amounts.

DHOAS & Property Investment:

No. You can’t use a DHOAS home loan to buy a property purely for investment. The funds are strictly limited to buying, building, renovating, extending, or refinancing your own home. Using the loan for other purposes, such as buying an investment property, car, boat, or holiday, breaches the scheme’s rules.

However, once you’ve lived in the home for at least 12 months from the start of your subsidy payments, you can rent it out and continue receiving the DHOAS subsidy, as long as your DHOAS home loan remains active and compliant.

DHOAS can play a key role in building a long-term property strategy. It allows you to turn your subsidised home into an investment asset once you’ve met the 12-month occupancy requirement. By continuing to receive monthly subsidy payments, you effectively reduce interest costs on your mortgage, improving cash flow when the property becomes a rental.

Key things to consider:

  • Business use restriction: The DHOAS subsidy stops if the property is used mainly for business purposes (e.g. operating a Bed & Breakfast).
  • Lump sum rule: Serving members can only access the lump sum if they haven’t previously bought a home while in the ADF, timing your purchase is crucial.
  • Transferring your entitlement: If you move your DHOAS to a new property, you must close your existing DHOAS loan and meet the 12-month occupancy rule again.
  • Tax implications: Always seek independent tax advice before renting out your DHOAS property, as it may affect your tax position.
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