DHOAS: From Eligibility to Your First Subsidy

By Bradley Burns, Founder & Principal Broker · Reviewed 10 September 2026

DHOAS can help eligible ADF members and veterans with home loan interest. To use it, you need to coordinate an entitlement assessment, a suitable loan and the steps that start payments. Follow this sequence before building a subsidy into your household budget.

1. Confirm your service record and available credit

The DVA eligibility criteria normally require service on or after 1 July 2008. The usual qualifying period is two consecutive years of Permanent service or four consecutive financial years of effective Reserve service. Effective Reserve service normally requires 20 paid days per financial year; combined service has special rules. Read DVA’s qualifying guidance.

Qualification comes before service credit. Under the usual pathway, Permanent members need at least one month of credit after qualifying; Reservists need one year. Give DVA details of previous subsidy use and service breaks to confirm your available service credit.

2. Time your certificate around your plans

A subsidy certificate lasts 12 months and cannot be extended. It does not guarantee a loan or payment. After separation, you have only one correctly completed certificate application opportunity, whatever its outcome. Check your plans with DVA before applying, especially for construction or a later refinance. Read the certificate rules.

3. Compare the mortgage and the subsidy

Australian Military Bank, Defence Bank and NAB are the appointed DHOAS providers. Confirm which lenders and products Axon can access at your enquiry. Compare rates, fees and features over the same loan amount and term, including an option without DHOAS.

DVA’s subsidy formula uses a scheme median interest rate, rather than your actual mortgage rate. Use the official calculator and current tier tables; an assisted loan limit is not a borrowing-capacity assessment. Check affordability if payments change or stop.

DHOAS can create a reportable fringe benefit that affects income-tested obligations or benefits. Include the tax implications in a discussion with your tax adviser.

4. Fund settlement and authorise payments

An eligible DHOAS lump sum converts up to 48 months of service credit at Tier 1. It is paid into the drawn-down loan and cannot fund an upfront deposit. Prior property ownership, certificate timing and expected ongoing service affect eligibility. Compare the immediate loan reduction with the credit left for future payments.

After settlement, once your occupancy date is known, send the Subsidy Authorisation Request Form (SARF) to DVA. This is a separate step from the certificate. Keep funds available for repayments while the payment requirements are being completed.

5. Check before moving or changing the loan

The normal occupancy requirement runs for 12 months from the start of subsidy; an eligible dependent can meet it while you are away. A new or significantly changed loan can restart that requirement. Renting out the property after meeting it can be permitted while the eligible loan continues. If a posting interrupts occupancy, ask DVA about an exemption before moving. Read the occupancy conditions.

Check the refinance rules before closing a loan or borrowing more; unrelated cash-out purposes and previous redraw use can affect eligibility. Separation can change your tier and ends further credit accrual. Medical separation and surviving partners have separate provisions. Use DVA’s change-reporting process promptly.

For deposit and transaction assistance, read our DHOAS, HPAS and HPSEA comparison. Our Defence mortgage checklist covers lending preparation.

Sources reviewed 10 September 2026. DVA determines individual entitlement and lenders assess loans. Special service, construction and family circumstances need an individual check.