How the DHOAS Loan Can Help You Smash Your Mortgage
There’s a powerful home loan benefit exclusive to ADF members and veterans—yet most don’t use it to its full potential. Are you leaving tens of thousands on the table?
If you’re a serving or former member of the ADF, the Defence Home Ownership Assistance Scheme (DHOAS) could be the single most valuable weapon in your mortgage toolkit. It’s not just a government bonus—it’s a long-term subsidy that could knock years and hundreds of thousands of dollars off your mortgage when used strategically.
At Integrity Property Investment, we’ve seen how proper DHOAS planning can transform your property journey. This blog breaks down how the scheme works, how to maximise it, and why timing is everything.
What Is DHOAS?
DHOAS is a loan subsidy scheme designed to help eligible ADF personnel and veterans buy their own home. It provides:
- A monthly tax-free subsidy paid directly to your home loan.
- A one-off lump sum in some cases.
- Access to ADF-approved home loan products.
This isn’t a benefit you want to waste—it could save you over $300,000 in repayments across a 25-year loan.
The Three DHOAS Tiers
Your entitlement depends on how long you’ve served:
Important: You don’t lose your DHOAS when you leave the ADF—but you do need to plan for it. You’ll need a Service Credit (your years served, minus your qualifying period) to access it.
Why DHOAS Is So Powerful
That monthly subsidy—up to $1,062—is free money from the government, paid directly to your mortgage. That’s:
- $12,744/year
- $63,720 over five years
- $318,600 over 25 years (Tier 3)
When added to your normal repayments, this supercharges your principal reduction and drastically cuts interest.
Top Tips to Maximise Your DHOAS
25 – rates change with interest rates)Don’t Burn It Too Early
- Wait until you’re eligible for Tier 3 if possible. If you start too early, you’ll receive the lower Tier 1 or 2 rate—and you can’t go back. Make the most of this once-in-a-lifetime opportunity.
- Don’t Break Your Service
If you stop serving before the minimum time, you reset your clock. If you’re leaving the full-time ADF, transfer to the Reserves and do 20 paid days per year to keep your DHOAS growing. - Leverage It with the Right Loan
Only a few lenders offer DHOAS-eligible home loans. Work with a broker (like the ones we can refer you to) who knows how to set this up properly. - Use It to Pay Your Home Off Faster
Don’t adjust your spending. Keep your repayment the same and use the DHOAS subsidy as an extra repayment—this alone can cut years off your mortgage.
When to Use DHOAS
Use DHOAS when:
- You’ve reached Tier 3 (8+ years service).
- You’re buying a home to live in, not just an investment.
- You’re ready to commit to a long-term property strategy.
Pro tip: Use investment properties first (build your portfolio), and then use DHOAS for your forever home or mortgage on your PPOR (Principal Place of Residence)—supercharging your pay-down strategy.
Why DHOAS + Strategy = Mortgage Freedom
Used alone, DHOAS is a great perk.
Used strategically—with offset accounts, surplus rent, tax returns, and smart structuring—it becomes a powerful financial engine.
This is what we specialise in at Integrity Property Investment: helping ADF members build wealth and get ahead faster by combining entitlements with smart investing.
Conclusion: Don’t Leave Free Money on the Table
If you’re not planning your mortgage around DHOAS, you could be missing out on six figures in financial advantage. The key is timing, structure, and using it to complement—not replace—your property strategy.
We’re here to help you get it right the first time.
Want Help Maximising Your DHOAS Benefits?
Book a free consultation with our expert team today:
🔗 https://www.integritypropertyinvestment.com.au/property-investing-for-adf/
Or get our ultimate guide:
📈 Wealth Through Property
🔗 https://www.integritypropertyinvestment.com.au/wealth-through-property/
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