dhoas

Everything there is to know about dhoas

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.

Key Takeaways

DHOAS rewards long-term ADF service, offering higher home loan subsidies the longer you serve.

A $46.2 million government expansion now allows veterans who served on or after 1 July 2008 to access DHOAS at any time after leaving service.

Eligibility periods have been halved – 2 years for permanent members and 4 years for reservists – with no expiry cap for veterans.

Eligibility periods have been halved – 2 years for permanent members and 4 years for reservists – with no expiry cap for veterans.

Members can convert up to four years of service into a lump sum (about $24,720) or combine entitlements as a couple for larger loans and higher monthly benefits.

DHOAS loans are only available through three approved lenders, each offering flexible, low-rate home loan options tailored for ADF members.

Subsidy Tiers for 2026-27

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

*Estimated monthly subsidy values based on September 2026 median interest rate. These monthly subsidy values fluctuate based on changes in the median interest rate!

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.

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 (AHP), 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 – maximum benefit!

Learn more about the DHOAS tiers.

DHOAS Subsidy and Defence Home Loan Conditions

Enter Loan Amount

Please Select Tier:

Tier 1

You have a minimum permanent service of 2 years or a minimum reserve service of 4 years

Tier 2

You have a minimum permanent service of 4 years or a minimum reserve service of 8 years

Tier 3

You have a minimum permanent service of 8 years or a minimum reserve service of 12 years

Your Subsidy

Monthly
Annually

The subsidy estimate is based on the latest available data and may vary with interest rate changes.

Ready to advance your property journey? Make sure you're pulling the trigger at the right time and the right place. Click here to access our free coaching and expert DHOAS advice.

Train with us

Subsidy Tiers for 2026-27

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

*Estimated monthly subsidy values based on September 2026 median interest rate. These monthly subsidy values fluctuate based on changes in the median interest rate!

As of June 2025, the AHP is $992,412 (up from $912,289).

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:

So you can have a higher monthly subsidy (about an extra $258 per month stays in your pocket) or;
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 Loan Tips & Tricks

DHOAS Lump Sum Option Explained

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 $515 per month x 4 years [48 months] = $24,720. 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

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 $1,546 (2 x $773). Now that is a massive chunk off your monthly repayments!

Comparing Ongoing Subsidy vs Lump Sum

	Ongoing Monthly Subsidy	Lump-Sum Option
What is it	A monthly payment from the Government that reduces your mortgage repayments.	A one-off payment that converts up to four years of accrued entitlement into cash.
When it’s used	After you buy and occupy your home, payments start each month and continue while you meet eligibility rules.	Typically accessed after a purchase or refinance to boost savings, pay down debt, or build a cash buffer.
How long it lasts	Continues for as long as you hold a valid subsidy certificate, occupy the property, and remain eligible.	One-time benefit; once used, those four years of entitlement are removed from your balance.

How Long Does DHOAS Last?

DHOAS subsidy certificates are valid for 12 months from the issue date, which is displayed on the certificate. To replace an expired certificate you must submit an Application for Subsidy Certificate to DVA; the new application will be assessed under the laws in force on the date of receipt. The Act does not allow extensions beyond the 12-month term.

The 12-month validity is a timing rule that affects both continuous and lump-sum DHOAS benefits. Without a valid certificate, you can’t start (or keep receiving) monthly payments, nor can you access the lump sum.

Common DHOAS Misconceptions

A common misconception is that your DHOAS payments are based on your personal loan interest rate. In reality, the subsidy is calculated using the average variable interest rate across major banks, which means your monthly benefit can fluctuate as market rates change.

It’s also important to remember that you must occupy the property for at least 12 months before converting it into an investment.

Finally, DHOAS isn’t available through every lender; only three approved providers can issue DHOAS loans

DHOAS Home Loan Providers

DHOAS and ADF home 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)

How is DHOAS Caculated?

The subsidy is calculated at 37.5% of the interest payable over the life of a 25-year loan based on the DHOAS median interest rate. Use the DHOAS Calculator to work out your entitlement:

Steps:
Enter your DHOAS home loan balance, up to your eligible tier levels subsidised loan (do not use dollar signs or any commas/full stops. E.g: $750,000 is entered as 750000

Enter 3.28 as the interest rate. (This is the current median interest rate to calculate DHOAS subsidy payments – this is current as of Feb 2022 and may differ from the rate of your loan.)

Please note: This calculator provides an estimate only of your DHOAS subsidy payment, based on a given loan amount and interest rate. The actual subsidy you are able to receive will depend on many different factors. If you would like a formal estimate of your subsidy amount, you should consider submitting an application for a subsidy certificate.

Complete Our Free ADF Training!

HOW TO BE A PROPERTY OWNER WITH YOUR ADF HOUSING ENTITLEMENTS: DHOAS, HPAS & HPSEA

In this FREE training you are going to find out:

FREE Property Training

Frequently Asked Questions

Understanding the DHOAS Lump Sum:

What is the DHOAS lump sum?

The DHOAS lump sum is a one-off payment available to eligible serving members. It lets you convert up to 48 months of your accrued service credits (at Tier 1 only) into a cash amount that’s paid directly onto your DHOAS home loan. This provides a strong early boost by reducing your loan balance and interest payable.

However, the lump sum can’t be accessed before settlement and can’t be used as a deposit when purchasing your home.

How is the DHOAS lump sum calculated?

The DHOAS lump sum is worked out by multiplying the number of service credit months you exchange (up to a maximum of 48) by the Tier 1 maximum monthly subsidy rate. This calculation stays the same regardless of your actual subsidy tier.

When can I access the lump sum option?

Only current serving ADF members can access the DHOAS lump sum, and strict eligibility rules apply. You must meet two key conditions:

No prior home ownership: Neither you nor your partner can have owned 50% or more of any land in Australia that was, or could have been, used as a home while you were serving.
Ongoing service: You must reasonably expect to continue effective ADF service for at least 12 months after the lump sum is approved.

Does the lump sum change depending on my tier?

No. The DHOAS lump sum is always calculated using the Tier 1 maximum monthly subsidy rate, even if you’re eligible for Tier 2 or Tier 3. This means that while you can still receive higher monthly payments for your remaining service credit at your eligible tier, the lump sum itself is fixed at the Tier 1 rate.

Because of this, higher-tier members should carefully consider whether taking the lump sum offers better value than using their full service credit toward ongoing monthly subsidies at their higher tier level.

Using the DHOAS Lump Sum:

Can I use the lump sum to reduce my mortgage upfront?

Yes, the DHOAS lump sum is designed to reduce your mortgage balance by paying a one-off amount directly onto your DHOAS home loan. However, it can’t be accessed upfront or used as a deposit before settlement. The payment is made after your loan is drawn down, usually alongside your first monthly subsidy payment.

Can the lump sum be used for renovations or only purchasing a home?

Yes, the DHOAS lump sum can be used for more than just purchasing a home. It can support any approved DHOAS property activity, including building, renovating, extending, or refinancing, by reducing the principal of your DHOAS home loan.

Can I combine the lump sum with ongoing DHOAS payments?

Yes, you can receive both the DHOAS lump sum and ongoing monthly subsidy payments, but only if you retain enough service credits to support both benefits.

If you’re using a construction loan, you can also choose to delay the lump sum until the final drawdown so the payment doesn’t reduce your loan balance too early, which could affect the calculation of your monthly subsidy.

Comparisons & Value:

Is it better to take the lump sum or ongoing subsidy?

It depends on your financial goals and eligibility tier. The DHOAS lump sum is always calculated at the Tier 1 rate, even if you qualify for a higher tier.

This means if you’re eligible for Tier 2 or Tier 3, which provide much higher monthly subsidies (for example, up to $942 for Tier 3 vs $471 for Tier 1, based on November 2025 rates), you may benefit more from keeping your service credits for ongoing monthly payments instead of converting them into a lower Tier 1 lump sum.

Is DHOAS worth it compared to a standard home loan?

Yes, for eligible ADF members, DHOAS offers clear advantages over a standard home loan. The scheme provides a government-funded interest subsidy paid directly into your mortgage each month, reducing your loan repayments and overall borrowing costs.

What are the main benefits and drawbacks of the lump sum option?

The DHOAS lump sum gives an immediate reduction to your home loan balance, can be combined with ongoing monthly subsidies, and offers flexible timing for construction loans.

However, it’s only available to current serving members, is always calculated at the Tier 1 rate (even if you’re eligible for Tier 2 or 3), can’t be used as a deposit, and uses up some of your service credits, which may reduce the value of future monthly subsidy payments.

Conditions & Risks:

How long does the DHOAS subsidy last?

The DHOAS subsidy lasts for as long as you have service credits available and continue to meet all scheme conditions, including holding an eligible DHOAS home loan. You earn one year of service credit for every year of effective ADF service completed after your qualifying period.

The maximum combined entitlement is 20 years, or up to 25 years if you’ve completed warlike service. Once your service credits are used up, your subsidy payments will stop.

What happens to my lump sum if I leave the ADF early?

The DHOAS lump sum is a one-off payment that’s paid straight onto your DHOAS home loan to reduce your principal. To access it, you must reasonably expect to continue effective ADF service for at least 12 months after the payment is authorised. If you plan to discharge or won’t complete effective Reserve service within that 12-month window, you won’t be eligible to receive the lump sum.

If you’ve already received the lump sum and then leave the ADF earlier than expected, the payment is not clawed back, as it was funded using the service credits you converted.

What’s the most common mistake ADF members make with their DHOAS lump sum?

The biggest mistake is using service credits to take the lump sum at the lower Tier 1 rate, even when they’re eligible for higher Tier 2 or Tier 3 monthly subsidies. This means giving up the long-term value of those higher monthly payments in exchange for a smaller upfront boost.

Members also need to keep enough remaining service credits to support future monthly subsidies; running out will stop all payments.

Another common issue is being ineligible because they purchased a home while serving, or applying for the lump sum too late during a construction loan (it must be requested before the property becomes occupiable).