For many in the Army, Navy, and Air Force, home ownership can feel like a distant goal. Between deployments, relocations, and the unique pay structures that come with serving in the Australian Defence Force (ADF), navigating the property market isn’t always straightforward.
But there’s good news: the Defence Home Ownership Assistance Scheme (DHOAS) is designed specifically to make home ownership more achievable for current and former ADF members. In a recent podcast, Vincent Turner sat down with principal broker Jake Wood to unpack how this scheme works, and why it’s unlike anything else in Australia.
“The Defence Home Ownership Assistance Scheme is essentially an interest rate subsidy provided by the Department of Veterans’ Affairs,” explains Wood. “It helps Defence Force members pay down their home loan over the long term.”
Unlike most government housing programs, DHOAS isn’t about helping with a deposit. Instead, it directly reduces the cost of your loan by covering part of your interest repayments.
“Really, it’s about helping Defence members chip away at their mortgage over time,” Wood says. “You can still combine it with other programs, like the First Home Guarantee, but the heart of DHOAS is that long-term subsidy.”
This structure makes it a powerful tool for Defence families planning to stay in their home for the long haul.
The scheme is open to permanent and reserve ADF members, but there are service requirements:
Subsidies are calculated in tiers based on years of service, with higher tiers providing bigger benefits. For example:
“Think of it as recognition for your time served,” “The longer you’ve been in the Defence Force, the greater the support.”
Wood explains.
Not all lenders participate in the scheme. Currently, only three banks are partnered with DHOAS:
These lenders work with the Department of Veterans’ Affairs to make sure the subsidies are applied correctly and importantly, they understand Defence income structures like DVA and CSC pensions.
“Going to a lender that recognises your full income, including pensions, can make a huge difference in your borrowing power,” says Wood.
While DHOAS is a generous program, Wood warns that not understanding your tier or going to the wrong lender can mean missing out.
“You don’t want to leave money on the table,” he says. “Working with a broker who knows the ins and outs of DHOAS is the best way to make sure you get the full benefit.”
Other pro tips:
While the scheme is a major benefit, Wood is quick to point out that it’s not always the best fit for every Defence family.
“At the end of the day, lending solutions should always come back to your personal goals,” “DHOAS is fantastic if you’re looking to live in your home. But if your priority is building an investment portfolio, it may not align with your strategy.”
Wood says
The Defence Home Ownership Assistance Scheme is one of the most unique government programs available to Australians, a long-term helping hand for those who serve.
Whether you’re just hitting your two-year service milestone or approaching a decade in uniform, DHOAS could save you tens of thousands over the life of your mortgage.
As Vincent Turner summed it up:
“If you’re eligible and not using it, you’re literally leaving money on the table.”
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