Defence members can get a monthly DHOAS subsidy on a loan from one of three appointed providers, and lenders generally treat ADF salary like any permanent role. The question is which combination costs least.
The Defence Home Ownership Assistance Scheme pays eligible ADF members a monthly subsidy towards the interest on a home loan, but only on a loan from one of the three home loan providers Defence has appointed.
For 2026-27 the subsidised loan limits are $455,622, $683,433 and $911,244 across the three tiers. A broker compares that subsidised loan with the best loans elsewhere, which cannot carry the subsidy.
Part of the employment and income home loans guide.
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is an indicative borrowing figure at today’s typical rates. Lenders typically count around 80% of rental income, which is why an investment purchase can lift your number, your real figure comes from a proper assessment.
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Subsidised loan limits for subsidies first paid in 2026-27, and the monthly subsidy at the September 2026 benchmark rate of 6.49%.
| Tier 1 | Years of effective service 2 / 4. Subsidised loan limit $455,622. |
|---|---|
| Tier 2 | Years of effective service 4 / 8. Subsidised loan limit $683,433. |
| Tier 3 | Years of effective service 8 / 12. Subsidised loan limit $911,244. |
Source: dhoas.gov.au. The subsidy changes with the benchmark rate each month.
Base salary is assessed like any permanent role. Service allowance and some other regular allowances are often counted, though lenders differ on how much. Temporary allowances, such as some deployment allowances, are usually not. Rent allowance is generally not counted as income.
Your payslips and a service history statement are the usual evidence; the overtime and allowances page explains how lenders treat allowance income.
Yes. Many members buy in Sydney while posted interstate, or rent out a home while posted away. If you rent the home out, the loan may need to change to an investment loan, and DHOAS occupancy rules apply; see renting out your home.
NSW first home buyer duty relief normally requires you to move in within 12 months, but Revenue NSW exempts permanent ADF members from the residence requirement in some circumstances, so check before you buy.
Not always. The subsidy is valuable, but the provider’s rate and features still matter. The 5% Deposit Scheme is open to eligible members too; your PMKeyS number can be used to confirm identity when applying.
Compare the subsidised loan’s cost after the subsidy with another lender’s best rate over the years you expect to keep the loan, and remember the subsidy only covers the loan up to your tier’s limit.
The Defence Home Ownership Assistance Scheme: a monthly subsidy towards the interest on an eligible member’s home loan from an appointed provider.
It depends on your tier and the benchmark rate. In September 2026 it was about $583, $874 or $1,166 a month for tiers 1 to 3.
No. Only the three home loan providers Defence has appointed can offer DHOAS loans.
Often, as regular income, though lenders differ on the share they count.
Permanent ADF members can be exempt from the residence requirement in some circumstances. Check with Revenue NSW.
The main one is DHOAS, a monthly interest subsidy for eligible ADF members after set periods of service, paid on a loan from one of the three providers Defence appoints. Outside DHOAS, lenders assess Defence pay like other salaried income.
See all income and employment guides, or read about the 5% Deposit Scheme.
Charles can compare a DHOAS provider’s loan with the subsidy against other lenders without it, over the time you expect to keep the loan.
Prefer a callback?Charles calls back within one business day. No documents needed yet.
General information only, not credit, tax or legal advice. Lender policies change and differ between lenders, and any loan is subject to the lender’s assessment. DHOAS eligibility is decided by DVA.
