The Defence Home Ownership Assistance Scheme (DHOAS) is one of the most valuable home ownership benefits available to Australian Defence Force members but many eligible members don’t know how much they could actually receive, or how their tier affects the calculation.
Our free DHOAS subsidy calculator estimates your monthly subsidy based on your loan balance, tier level, and the current DHOAS median interest rate. It also shows what you would receive across all three tiers, so you can see the financial impact of reaching the next service milestone.
Subsidy amounts change monthly as the DHOAS median rate fluctuates. The calculator is pre-loaded with the current median rate from the official DHOAS website. For a personalised assessment of your full DHOAS entitlement including lump sum service credit options, timing strategy, and loan structure — book a free defence loan assessment with Stanford Financial.
Estimate your monthly DHOAS subsidy and compare what you could receive across all three tiers.
Specialist in Defence home loans — including DHOAS. Stanford Financial's Logan Stanford is an Australian Army veteran. We understand the unique needs of ADF members and can guide you through DHOAS eligibility, tier planning, and loan structure.
Book a Free Defence Loan AssessmentDHOAS is a federal government scheme that pays a monthly cash subsidy directly into the home loan of eligible ADF members and veterans. The subsidy is paid by the Department of Veterans’ Affairs (DVA) into your DHOAS-approved home loan account, reducing the effective cost of your mortgage each month.
The scheme exists because ADF service involves frequent postings, deployments, and housing disruptions that make it harder for defence members to build home equity at the same pace as civilian counterparts. DHOAS is designed to partially offset this disadvantage by subsidising a portion of the interest cost on a member’s home loan.
DHOAS does not require you to live in a particular location or purchase a particular type of property. The subsidy is paid into your loan regardless of where the property is, provided you occupy it as your principal place of residence for at least 12 months. It is paid directly into your DHOAS-approved loan account — not to you personally.
The monthly DHOAS subsidy is calculated using the official DHOAS formula: 37.5% of the monthly interest expense on the subsidised portion of your home loan, using the DHOAS median interest rate — not your actual home loan rate.
The subsidised portion is the lesser of your outstanding loan balance or your tier’s subsidised loan limit. If your loan is smaller than your tier limit, your entire balance is subsidised. If your loan exceeds your tier limit, the subsidy is calculated on the tier limit only. The portion above the limit does not attract subsidy.
The DHOAS median rate is sourced monthly from CANSTAR Pty Ltd and reviewed by DVA on the tenth-last business day of each month. It is legislatively capped at 8.95%. The current median rate is 6.09% per annum (February 2026), as published on the official DHOAS website.
The median rate used to calculate DHOAS is NOT your home loan rate. You could have a loan at 5.9% or 7.2% – the subsidy calculation uses the same DHOAS median rate regardless. This means the subsidy amount is the same for all eligible members with the same loan balance and tier, irrespective of which lender they use.
Your tier is determined by your length of qualifying ADF service. The tier controls two things: the maximum loan amount on which subsidy is calculated, and therefore the maximum monthly subsidy you can receive. The 2025–26 limits are based on an Average House Price (AHP) of $1,034,225, set by the Minister for Defence as at 1 July 2025.
| Tier | Service Req. | Loan Limit | Max Monthly* | Max Annual* |
| Tier 1 | 2yr Permanent / 4yr Reserve | $413,690 | ~$490/mo | ~$5,880/yr |
| Tier 2 | 4yr Permanent / 8yr Reserve | $620,535 | ~$736/mo | ~$8,832/yr |
| Tier 3 | 8yr Permanent / 12yr Reserve | $827,380 | ~$981/mo | ~$11,772/yr |
* Maximum monthly subsidy based on the February 2026 DHOAS median rate of 6.09% p.a. Amounts fluctuate as the median rate changes. Maximum applies when your loan balance equals or exceeds the tier’s subsidised loan limit.
The tier limits are reviewed each financial year based on changes to the AHP. Importantly, once your DHOAS subsidy commences, the limits applicable at the start of your subsidy apply for the life of that home loan arrangement. Stopping and restarting DHOAS resets the applicable limits to those current at the time of restart.
DHOAS is available to current and former ADF members who meet the following criteria:
Eligibility extends to certain former members. Members who separate after completing 20 or more years of effective service remain at Tier 3 and can continue receiving subsidy payments. Members who separate before 20 years reduce to Tier 1. Subsidy payments continue while the DHOAS home loan remains open and the member is meeting Scheme conditions.
Reserve members are eligible for DHOAS based on qualifying periods of Reserve service. The qualifying periods are longer than for Permanent members: Tier 1 requires 4 years Reserve service (versus 2 years Permanent), Tier 2 requires 8 years (versus 4), and Tier 3 requires 12 years (versus 8). Service credits accumulate based on qualifying Reserve service days.
In addition to ongoing monthly subsidy payments, eligible members may be able to use a lump sum service credit — a one-off payment of accumulated service credit applied directly to the home loan principal. This can be particularly powerful early in the loan term when a principal reduction has the greatest compounding impact on interest charges. The interaction between the monthly subsidy and the lump sum requires careful timing and strategic planning. Our brokers can advise on the optimal approach for your situation.
DHOAS is one of several housing-related benefits available to ADF members. Understanding how they interact is important for maximising your entitlement.
The Home Purchase Assistance Scheme (HPAS) and Home Purchase or Sale Expense Allowance (HPSEA) provide one-off grants to help cover the costs of purchasing or selling a home due to a posting. These are separate from DHOAS and do not affect your DHOAS entitlement. Members can receive HPAS and DHOAS simultaneously, and the combination can significantly offset the costs associated with defence postings.
Members living in DHA housing do not receive DHOAS for that period, as DHOAS applies only to a member-owned principal place of residence. DHOAS subsidy commences once a member purchases their own property and meets the occupancy conditions. The timing of when to activate DHOAS relative to DHA housing is an important strategic decision that depends on your career stage and posting cycle.
DHOAS is not mutually exclusive with first home buyer concessions. Eligible first-home buying ADF members can access the Queensland First Home Owner Grant ($30,000 for new homes under $750,000 until June 2026), zero stamp duty on new homes and vacant land, and the First Home Guarantee — in addition to their DHOAS entitlement. The combination of DHOAS plus first home buyer benefits is one of the most significant financial advantages available to early-career permanent ADF members purchasing their first home.
An eligible Tier 2 ADF member purchasing a new first home in Queensland could simultaneously access: $736/mo DHOAS subsidy + $30,000 First Home Owner Grant + zero stamp duty + 5% deposit through the First Home Guarantee. Over the first three years of DHOAS payments alone, the cumulative subsidy would exceed $26,000 — in addition to the upfront grants and duty savings. Stacking these benefits requires careful timing and a broker who understands the full picture.
No. DHOAS home loans must be taken out with one of the three Home Loan Providers (HLPs) appointed by Defence. As of 2025–26, the HLPs are the Defence Bank, Australian Military Bank, and Defence Housing Australia’s lender arm. You must obtain a valid Subsidy Certificate from DVA before settling on a DHOAS loan. The HLP does not need to provide the most competitive rate on the market — but the subsidy payments offset some of that difference. A specialist defence broker can help you compare the HLP products and total cost.
Subsidy payments begin once your HLP notifies DVA that your loan has settled and you submit a completed Subsidy Authorisation Request Form confirming you are meeting the Scheme conditions (including occupancy). Payments are made at the beginning of each month and cover the month or two months previously, depending on when your loan was drawn down. There can be a lag of 1–2 months between settlement and first payment.
No. DHOAS subsidy payments are not taxable income. The subsidy is paid directly into your home loan account as a reduction of your debt — it is not paid to you as cash. This means it does not need to be declared in your tax return and does not affect your income-tested government benefits or entitlements.
Your DHOAS subsidy ceases when your home loan closes, which occurs when you sell the property and pay out the loan. Your accumulated service credit is preserved and can be used when you purchase your next property and commence a new DHOAS arrangement. If you sell and repurchase, the new subsidy will be calculated on the subsidised loan limits and median rate current at the time of the new loan.
No. DHOAS applies to one principal place of residence at a time. You cannot receive DHOAS on multiple properties simultaneously. If you rent out your property and purchase another, the subsidy ceases for the rented property and can only recommence when you occupy a principal place of residence.
In addition to ongoing monthly payments, eligible members may redeem accumulated service credit as a one-off lump sum payment applied to the principal of their DHOAS home loan. The lump sum represents the capitalised value of accumulated service credit that has not yet been converted to monthly subsidy. The amount depends on the member’s service history and credit balance. Strategic use of the lump sum particularly early in the loan term when principal reduction has the greatest compounding effect can be highly valuable. Contact DVA or a DHOAS specialist to confirm your credit balance and lump sum eligibility.
Stanford Financial’s Managing Director, Logan Stanford, is an Australian Army veteran. Our team understands the unique challenges of ADF home ownership — frequent postings, deployment cycles, HPAS timing, and the interaction between DHOAS, the First Home Guarantee, and Queensland stamp duty concessions.
Getting the most out of DHOAS requires more than a calculator. It requires knowing when to activate your certificate, which tier you’re approaching, whether the lump sum makes sense at your loan stage, and which HLP product best suits your financial profile. That’s a conversation we’re built for.
Ready to maximise your DHOAS entitlement? Book your defence loan assessment today — call us on 0483 980 002 or contact us online.
