DHOAS interest subsidy of up to ~$340/month for eligible serving members plus Defence Bank mutual pricing
The Defence Home Ownership Assistance Scheme (DHOAS)
The Defence Home Ownership Assistance Scheme (DHOAS) is a federal scheme providing a monthly subsidy on home loan interest for eligible serving and recently-discharged Australian Defence Force members. The subsidy is calculated as a percentage of the loan balance up to a maximum subsidy amount that varies by service length and rank.
As at mid-2026, the maximum monthly DHOAS subsidy is approximately $340 for the highest tier of eligibility. For a serving member with 12+ years of service, the typical monthly subsidy is materially below the maximum but still substantial; over a 25-year loan life, the cumulative value can exceed $80,000 in interest cost reduction.
How DHOAS eligibility works
DHOAS eligibility is tiered based on service length, with three primary tiers. Tier 1 requires at least 4 years of qualifying service and provides the lowest subsidy. Tier 2 requires 8+ years and provides a higher subsidy. Tier 3 requires 12+ years and provides the highest subsidy.
Recently-discharged members can access DHOAS for up to two years after discharge, subject to the same tier eligibility based on service length. Operational service typically counts at an accelerated rate, which can move members through the tiers faster.
Defence Bank specialist programs
Defence Bank is the primary administrator of DHOAS and operates as a customer-owned bank serving the ADF community. The bank offers home loan products integrated with DHOAS subsidy, plus specific ADF-aware credit policy that accommodates deployment-related income disruption, posting transfers and other service-specific circumstances.
For ADF members, Defence Bank typically combines competitive home loan rates with the DHOAS subsidy administration, producing a strong combined package. The mutual ownership model means no annual package fee on most variants.
Stacking with federal first home buyer schemes
For first home buyer ADF members, DHOAS can stack with the federal First Home Guarantee scheme. The combination is materially valuable: FHG removes the LMI cost on a 5 per cent deposit, and DHOAS provides ongoing interest subsidy throughout the loan life. For an eligible serving member, the combined first-year benefit can exceed $25,000 (LMI saving plus subsidy).
Defence Bank can administer both the DHOAS subsidy and the FHG application as a one-stop integrated process for eligible members. Other DHOAS-administering lenders include several Big 4 banks and tier-2 lenders; the broker can advise on the optimal combination.
Participating lenders
Eligibility checklist
- Serving or recently-discharged Australian Defence Force member (Army, Navy, Air Force)
- Minimum 4 years of qualifying service for any DHOAS tier
- Australian citizen or permanent resident
- Meet standard income and serviceability requirements
- Clean credit history
- Loan is on a property used as principal place of residence
Frequently asked questions
What is DHOAS?
The Defence Home Ownership Assistance Scheme is a federal subsidy on home loan interest for eligible serving and recently-discharged ADF members. The subsidy is calculated as a monthly amount based on service length and loan balance, providing material reduction in home loan interest cost over the loan life.
How much is the DHOAS subsidy?
The maximum monthly DHOAS subsidy as at mid-2026 is approximately $340 for the highest tier of eligibility (12+ years of service at the maximum loan balance). For a typical serving member with 8-12 years of service, the actual monthly subsidy is materially below the maximum but still substantial; the cumulative value over a 25-year loan is typically $40,000-$80,000.
Can I get DHOAS as a former ADF member?
Yes, but only within two years of discharge. After two years, eligibility ceases. The subsidy tier is based on service length at the time of application.
Which lenders administer DHOAS?
Defence Bank is the primary administrator. Several other lenders also administer DHOAS-eligible home loans including CBA, Westpac, NAB, ANZ, Newcastle Permanent and a number of regional banks. A broker can identify which lender combination is most competitive for your specific file.
Can I stack DHOAS with the federal First Home Guarantee?
Yes. The federal FHG removes LMI cost on a 5 per cent deposit, and DHOAS provides ongoing interest subsidy. For first home buyer ADF members, the combination is materially valuable.
Does DHOAS apply to investment property?
No. DHOAS applies only to the principal place of residence. The loan must be on the property the ADF member lives in. Investment property loans are not eligible for DHOAS subsidy.