By Chaice Paterson, CEO & Founder, Low Deposit Homes | Updated June 2026
DHOAS — the Defence Home Ownership Assistance Scheme — is a monthly government subsidy paid directly onto the interest of an eligible ADF member’s home loan. How much you get depends on two things: your subsidy tier (set by how long you’ve served) and your loan balance up to a capped subsidised loan limit. For 2025–26 the three tiers carry subsidised loan limits of $413,690 (Tier 1), $620,535 (Tier 2) and $827,380 (Tier 3), and at recent interest rates the maximum monthly subsidy has been roughly $490, $736 and $981 a month respectively. The subsidy is paid for as long as you hold an eligible DHOAS loan and meet the scheme’s conditions, and over the life of a mortgage it can add up to a very substantial figure. Here’s exactly how it works, who qualifies, and how it fits with the first home buyer grants.
What is DHOAS in plain terms?
DHOAS helps current and former ADF members — both Permanent Force and Reserves — buy a home by subsidising part of the interest on their mortgage. The subsidy is paid monthly, straight into your DHOAS home loan account, reducing what you effectively pay. It was established to recognise the commitment and disruption of military service, and it’s administered by the Department of Veterans’ Affairs (DVA) on behalf of Defence. Crucially, DHOAS is an ongoing subsidy — unlike a one-off grant, it keeps paying month after month while you hold an eligible loan.
Who is eligible for DHOAS?
To access DHOAS you must have served on or after 1 July 2008 and completed a qualifying period of service, then accrued a service credit. The qualifying period is at least two years of permanent service (or four years of Reserve service). Beyond that initial gate, your benefit grows with your length of service through the tier system below. Eligibility is confirmed by DVA, who issue you a subsidy certificate — you then take that certificate to one of the approved DHOAS home loan providers. Important: a subsidy certificate confirms your DHOAS entitlement; it is not a home loan approval, and it doesn’t oblige a lender to lend you any particular amount — that’s still subject to the lender’s normal criteria.
How do the DHOAS tiers work?
Your tier is set by your total years of ADF service, and it determines two things: the maximum portion of your loan that attracts a subsidy (the subsidised loan limit) and the maximum monthly subsidy you can receive. The limits are pegged to the national Average House Price (AHP), which was $1,034,225 as at 1 July 2025, with each tier set at 40%, 60% or 80% of that figure:
| Tier | Service required (Permanent / Reserve) | Subsidised loan limit (2025–26) | Approx. max monthly subsidy* |
|---|---|---|---|
| Tier 1 | 2 years / 4 years | $413,690 (40% of AHP) | ~$490 |
| Tier 2 | 4 years / 8 years | $620,535 (60% of AHP) | ~$736 |
| Tier 3 | 8 years / 12 years | $827,380 (80% of AHP) | ~$981 |
*The monthly subsidy dollar figures move with interest rates — they rise when rates rise and fall when rates fall, because the subsidy is calculated on the interest of the subsidised portion of your loan. Treat them as current estimates, not fixed amounts. The subsidised loan limits, by contrast, are fixed for the financial year and reviewed each 1 July.
How is my DHOAS subsidy actually calculated?
The subsidy is calculated on your loan balance up to your tier’s subsidised loan limit:
– If your loan balance is equal to or above your tier’s limit, your subsidy is calculated on the limit — you receive the maximum monthly subsidy for your tier.
– If your loan balance is below the limit, your subsidy is calculated on your actual balance — so you receive a proportionally smaller amount.
For example, a Tier 1 member with a $500,000 loan has their subsidy calculated on the $413,690 limit (not the full $500,000), so they receive the maximum Tier 1 subsidy. A Tier 2 member with only a $250,000 loan has it calculated on $250,000 (below their $620,535 limit), so they receive a proportional amount rather than the Tier 2 maximum. The practical takeaway: your subsidy is most “efficient” when your loan is at or above your tier limit.
How long does DHOAS keep paying?
As long as you hold an eligible DHOAS home loan, maintain a service credit, and keep meeting the scheme conditions, the subsidy continues — including after you separate from the ADF, subject to the rules. Your accrued service determines how long your entitlement runs. Because it pays monthly over years, the cumulative value is where DHOAS gets powerful: even a mid-tier subsidy, compounded across the early years of a mortgage when interest is highest, can return tens of thousands of dollars over time.
Can I use DHOAS with the First Home Owner Grant and other schemes?
Yes — and this is the part most members underuse. DHOAS is a Defence scheme (via DVA); the First Home Owner Grant, the 5% Deposit Scheme and stamp duty concessions are civilian schemes (via the states and the federal housing body). They sit in separate eligibility silos, so qualifying for DHOAS doesn’t reduce your civilian entitlements. An eligible serving member buying their first new-build home can potentially combine the 5% Deposit Scheme (5% deposit, no LMI), $0 Queensland stamp duty, the First Home Owner Grant where the package qualifies, and DHOAS reducing the repayment afterward — plus HPAS as a one-off cash boost. We work with defence-savvy lenders who are across DHOAS and exactly how it stacks with the first-home grants, so you capture everything you’re entitled to rather than leaving benefits on the table.
Frequently asked questions
How much is the DHOAS subsidy per month? It depends on your tier and loan balance, and it moves with interest rates. At recent median rates the maximum has been about $490/month (Tier 1), $736/month (Tier 2) and $981/month (Tier 3), calculated on subsidised loan limits of $413,690, $620,535 and $827,380 for 2025–26.
What is the qualifying period for DHOAS? At least two years of permanent ADF service (or four years of Reserve service), having served on or after 1 July 2008, plus an accrued service credit.
Is DHOAS available to Reservists? Yes — Reserve service counts, with longer qualifying and tier-progression periods than for permanent members (Tier 1 at 4 years, Tier 2 at 8, Tier 3 at 12).
Can I use DHOAS after I leave the ADF? DHOAS is available to eligible current and former serving members who meet the conditions; how long your entitlement runs depends on your service history. Confirm your specific position with DVA.
Does the DHOAS certificate mean my loan is approved? No. The subsidy certificate confirms your DHOAS eligibility only. Loan approval is separate and subject to your lender’s normal lending criteria.
Do I have to use a particular lender? DHOAS subsidies are paid on loans from approved DHOAS home loan providers. A defence-savvy broker can help you compare the options — we’ll link you up with the right people.
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Related Defence guides
- Defence Force First Home Buyer Guide
- How the Defence schemes stack with the first home grants
- DHOAS vs the First Home Guarantee (5% Deposit Scheme)
- Queensland first home buyer guide
- Victoria first home buyer guide
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Low Deposit Homes operates under Winning Homes Australia Pty Ltd (ACN 633 321 758). DHOAS figures are current for the 2025–26 subsidy year as published by dhoas.gov.au; monthly subsidy values move with interest rates and limits are reviewed annually. General information only, not financial or credit advice. Confirm your entitlement with the Department of Veterans’ Affairs (1300 434 627).