Buying a home is a big decision, and the Defence Home Ownership Assistance Scheme (DHOAS) can help eligible Defence members reduce the cost of a home loan through a government subsidy.
Here’s what you need to know.
What is DHOAS?
DHOAS is a government subsidy that helps reduce the cost of your home loan.
- You take out a DHOAS eligible home loan as usual
- If eligible, the government contributes towards your interest
- This reduces the overall cost of your loan over time
How does DHOAS work with your home loan?
DHOAS doesn’t replace the normal lending process.
- You still apply for a home loan based on your financial situation
- All loans are subject to standard credit assessment
- The subsidy is applied separately once eligibility is confirmed
Eligibility for DHOAS and approval for a loan are two different things - both play an important role in the final outcome.
Are DHOAS home loan rates competitive?
DHOAS is designed to support eligible ADF members through a government subsidy provided in recognition of military service. That subsidy is an entitlement under the scheme and is intended to sit in addition to a competitively priced home loan.
Under the DHOAS Deed, participating home loan providers are required to offer their best possible rate for eligible borrowers. While some lenders outside the scheme may offer different rates because of different funding arrangements, the purpose of DHOAS is not for lenders to offset the value of the subsidy through higher pricing.
For members, this means it is important to understand both the interest rate being offered and how the DHOAS subsidy applies as a separate benefit.
Who is eligible for DHOAS?
DHOAS is available to eligible current and former members of the Australian Defence Force. Eligibility depends on your service history and other criteria set by the scheme. Defence Bank can help you understand how DHOAS may apply to your home loan options.
Our approach at Defence Bank
We’re focused on supporting Defence members with:
Competitive and fair pricing
Our DHOAS rates are aligned with the broader home loan market
Responsible lending
Every application is assessed to ensure it’s appropriate and sustainable
Specialist support
Our team understands Defence life and can guide you through your options
What should you do next?
Whether you’re buying, refinancing or reviewing your current loan, it’s worth checking:
- Your DHOAS eligibility
- How the subsidy impacts your loan
- Whether your current loan still suits your needs
Want to learn more?
If you’d like to explore DHOAS in more detail, you can:
Or talk to a Defence Bank lender at a time that suits you.
Frequently asked questions
From January 2023, there have been improvements to how ADF members and veterans can qualify for and access DHOAS, these are:
- Reducing the minimum qualifying period required by current ADF members from four to two years for permanent service, and from eight to four years for Reserve service.
- Removing the deadline for veterans who have left the service to access their final subsidy certificate (previously five years). Contact the Department of Veterans Affairs for more information.
Portability of your Defence Bank DHOAS home loan may be possible if you don’t require additional funds to purchase your next home. Speak with a lender to discuss your situation further.
We also recommend you should always contact the Department of Veteran Affairs (DVA) before making any changes to your DHOAS home loan.
You and your partner will both need to be Defence Bank members to obtain a Defence Bank DHOAS home loan. The good news is that once you are a member, you will have access to our wide range of savings, investment, insurance and loan products.
Talk with one of our home loan consultants to discuss how we can assist you.
You and your partner will both need to be Defence Bank members to obtain a Defence Bank DHOAS home loan. The good news is that once you are a member, you will have access to our wide range of savings, investment, insurance and loan products.
Talk with one of our home loan consultants to discuss how we can assist you.
