A comprehensive guide for ADF members covering DHOAS eligibility, subsidy tiers, loan limits, conditions, and practical strategies for using the scheme well. Updated March 2026.
The Defence Home Ownership Assistance Scheme (DHOAS) is a government initiative that supports eligible current and former members of the Australian Defence Force (ADF) to achieve home ownership by providing a monthly subsidy towards the interest component of an approved home loan. DHOAS is administered by the Department of Veterans' Affairs (DVA) on behalf of the Department of Defence.
ADF service often involves postings, relocations and unique financial arrangements. DHOAS is a tailored support vehicle recognising the commitment of service personnel. Because it reduces the interest cost on a home loan, it can improve your borrowing capacity or make owning your own home more achievable.
Monthly subsidy is based on: your eligible subsidy tier, your DHOAS home loan balance (up to your tier's subsidised loan limit), and the published median interest rate used by the scheme. The subsidy is calculated as 37.5% of the median interest expense on the subsidised portion of the loan, as if the loan were repayable over 25 years.
After the loan is settled and drawn down, the member must complete and submit the Subsidy Authorisation Request Form (SARF), confirming that the scheme conditions are being met. Subsidy cannot be authorised until this is done.
Tier 1: 2 years permanent / 4 years reserve — Subsidised loan limit $413,690
Tier 2: 4 years permanent / 8 years reserve — Subsidised loan limit $620,535
Tier 3: 8 years permanent / 12 years reserve — Subsidised loan limit $827,380
Indicative maximum monthly subsidies (based on March 2026 median interest rate): Tier 1 up to $490/month, Tier 2 up to $736/month, Tier 3 up to $981/month.
These maximum monthly subsidy figures can change as the published median interest rate changes. The subsidised loan limits remain fixed for the financial year.
Occupancy: The member and/or their dependants need to occupy the home for 12 months from the first payment authorisation date, unless an exception applies.
Loan balance timing: Your subsidy is generally based on the home loan balance at the time of your first DHOAS subsidy payment. Delays between settlement and first payment can affect the subsidy amount.
Trust structures: DHOAS subsidy is not payable if any part of the interest in the land is held as trustee or as a beneficiary of a trust.
Refinancing: Only the outstanding amount of the original loan is generally eligible. Moving to a non-approved lender can affect eligibility.
Lump-sum option: In limited circumstances, eligible members may convert part of their DHOAS assistance into a lump-sum payment toward the loan.
Confirm your service record, apply for your Subsidy Certificate early, choose a DHOAS-approved lender, submit the SARF after settlement, and keep documentation.
With the current 2025–26 limits in force and monthly subsidy amounts continuing to shift with interest rates, it is worth reviewing how DHOAS applies to your situation now — especially if you are planning to buy, refinance, or navigate a posting or transition.
See also: DHOAS Strategy Guide | Help to Buy vs DHOAS | Defence Force Property Specialists
Updated: March 2026
Contact: info@firmfoundationsproperty.com.au