For Australian Defence Force (ADF) members, buying a home can become more manageable through the Defence Home Ownership Assistance Scheme (DHOAS). The scheme provides eligible former members with assistance towards home-loan interest, helping reduce home-ownership costs. Understanding how the DHOAS home loan subsidy works is important before applying, because eligibility, service credits and subsidy limits vary.
Who Can Access DHOAS?
DHOAS is available to eligible Permanent ADF and Reserve members who have completed qualifying service. Permanent members generally need two consecutive years of service, while Reservists need four years of effective Reserve service.
Members must have served on or after 1 July 2008 and accrued sufficient service credit. Certain former members and surviving partners may also qualify under certain circumstances. Service histories can affect entitlement, so applicants should confirm their position with the Department of Veterans’ Affairs (DVA).
How Do the Subsidy Tiers Work?
DHOAS has three subsidy tiers, with longer service generally providing access to a higher subsidised loan limit. For 2026–27, Tier 1 applies from two years of Permanent service or four years of Reserve service, Tier 2 from four or eight years respectively, and Tier 3 from eight or twelve years.
Loan limits are $455,622, $683,433 and $911,244, respectively. They represent the maximum portion of a DHOAS home loan on which the subsidy is calculated and are reviewed annually.
How Is the Monthly Payment Calculated?
The subsidy is not a fixed percentage of actual mortgage interest. DHOAS uses a prescribed formula based on 37.5% of the median interest expense on the subsidised portion of the loan, calculated over 25 years.
Because the median interest rate can change, monthly payments may fluctuate. For 2026–27, estimated maximum monthly payments are $607, $911 and $1,215 respectively, although actual payments depend on the rate and loan balance.
How Do You Apply?
Applicants first apply to DVA for a DHOAS Subsidy Certificate. Once approved, the certificate is provided to a DHOAS-approved Home Loan Provider. In 2026, participating providers are Australian Military Bank, Defence Bank and NAB.
After settlement, the borrower submits the Subsidy Authorisation Request. DVA then calculates the entitlement and deposits the subsidy directly into the DHOAS home-loan account.
What Conditions Apply?
DHOAS loans must be used for approved purposes such as purchasing or building a home, buying land for construction, or certain renovation and repair work. Investment properties and personal debt consolidation are not eligible.
Occupancy requirements apply. Borrowers generally need to live in the property for the required period and notify DVA about relevant changes.
AssetBase and Home Ownership Planning
When assessing a DHOAS purchase, it can be useful to consider borrowing capacity, property costs, loan structure and long-term affordability. AssetBase can be considered as part of that property planning process, rather than as a substitute for checking official DHOAS eligibility or subsidy rules.
Conclusion
DHOAS can provide interest assistance to eligible ADF members, but the benefit depends on service history, tier, loan balance and rates. Before committing to a property, applicants should confirm their certificate, understand the applicable conditions and compare borrowing options. Used carefully, the DHOAS home loan subsidy can form part of a sustainable home-ownership strategy.