Is DHOAS getting a shake up in 2026?
The Defence Home Ownership Assistance Scheme (DHOAS) is a benefit for eligible current and previous serving members of the ADF to assist with the cost of home ownership. It is administered by the Department of Veteran’s Affairs (DVA).
In 2017, three banks were awarded the tender and the result is the current panel of participating lenders; NAB, Defence Bank and Australian Military Bank (AMB). Of these three lenders, only AMB allows Mortgage Brokers to write DHOAS loans.
For an average loan size with an 80% LVR, advertised interest rates between the triopoly range from 0.45% – 0.8% higher than non-DHOAS options. With the average loan size in NSW at $873,000, that equates to a difference of $3,900 to $6,980 per year in interest being eroded from the ADF member’s hard-earned DHOAS subsidy.
As a Mortgage Broker with a high percentage of Defence clients, I’ve been limited in the recommendations and service I can provide to my clients. As an ADF spouse, I’ve found the personal limitations to my home loan options to be frustrating. As an Australian, I think it’s unfair that a benefit awarded to our ADF members for their service is being chewed up.
This week I reached out to DVA to provide feedback and request an update on the review which was undertaken last year. Their response;
"As a result of an Open Tender process in 2017, Defence approved Australian Military Bank, Defence Bank and National Australia Bank to provide the DHOAS home loan product. Defence is currently undergoing another Open Tender process. As that process is run by Defence, we cannot comment on the outcome or when the result of the tender will be announced. Clarification of who was eligible to participate in the tender was included in the tender documents. This included how mortgage brokers could be used, and the requirements for DHOAS home loan providers to offer ADF members at least as competitive a product as they would their non-DHOAS customers. "
Information available on the ausTENDER website shows that the Open Tender process closed on 31st October 2025, and expected an approved panel of lenders to commence on the 1st July 2026 for an initial period of 7 years with extension options.
With no further information available at this stage, we can only hope that positive change is nearly here.