Last Updated: 15th November, 2022

How much can police officers borrow?

Police officers and other law enforcement professionals are able to qualify for special home loan exceptions, including:

  • Borrow up to 95% of the property value: You’ll need a clear credit history, stable employment, good income, minimal debts and must not be buying an unusual property type or a property in non-metro location.
  • Borrow up to 110% of the property value: By asking your mum and dad to act as a guarantor on your mortgage, you can borrow the property value plus the costs of completing the purchase.
  • Negotiated interest rates: We have special relationships with our panel of lenders that allow us access to special discounts, particularly if you have stable employment in law enforcement.

Call 1300 889 743 or fill in our free assessment form to discover if you qualify for a police home loan.

90% LVR With No LMI For Police Officers

A lender on our panel is offering waived LMI on a 90% home loan for police officers. There is no minimum income requirement. To qualify now for no LMI on a 90% home loan from this lender:
  • You must buy a residential property (Only Category 1 and 2 locations accepted).
  • You need a minimum of $5,000 genuine savings over six months. Rent paid via lease agreement is accepted as genuine savings.
  • You do not require a university degree.
  • The maximum loan amount is $1.35 million for metro locations and $1 million for non-metro locations.
  • Either applicant can be a police officer to qualify for waived LMI.

What Is Waived LMI?

LMI is an acronym for Lenders Mortgage Insurance, which is paid by the borrower to the lender when you’re borrowing more than 80% of the property value. As a police officer, you now can avoid paying LMI even when borrowing up to 90% of the property value. Here’s how much you can save on LMI fees:
Property Value Loan Amount LVR LMI Premium Saved*
$700,000 $630,000 90% $15,674
$800,000 $720,000 90% $17,913
$900,000 $810,000 90% $20,152
$1 million $900,000 90% $22,392

*Results from our Home Loan Experts’ LMI calculator, based on a new purchase of a home as a primary place of residence in the state of New South Wales.

Are you ready to save thousands of dollars on your home loan? Call us on 1300 889 743 or enquire free online today.

How will banks assess my overtime income?

Police officers tend to significant overtime, so much so that it tends to make up a significant portion of your regular income.

What many police officers don’t realise is that most banks will shave your O/T to 80%.

This can heavily reduce your assessable income and, ultimately, your borrowing power.

As essential services workers, police officers are treated favourably by select lenders and some will even accept 100% of your overtime income.

Generally speaking, you’ll need to provide:

  • An employment letter confirming that you have been receiving overtime income regularly for the past 12-24 months.
  • Two of your most recent payslips.
  • Your most recent group certificate.

Will the bank accept police salary packaging?

Most banks will only consider your gross income without taking salary sacrifice tax benefits into account.

Examples of fringe benefits for police officers include novated leasing to purchase a car and clothing allowances.

Some of our lenders will assess this salary packaging as “tax-free” which essentially means they’ll add 100% of this back to your assessable income.

This can greatly improve your borrowing power for a home loan!

Most banks will require you to verify that these salary packaging benefits have been consistent, verified with an employment letter.

Will banks consider income from a second job?

Some banks recognise that most police officers do shift work and have a second job to supplement their income.

Generally speaking:

  • The second job needs to be in the same line of work, so working as a security guard or in private security on the side will typically be acceptable.
  • Your income may be shaded by between 50-80%.
  • Some lenders will accept 100% of your income if you can show that you have a 6-12 month work history with your second employer and have been earning a regular income.
  • Some lenders will consider less than 3 months work history if you’re in a strong financial position with a clear credit history.

What types of police officers can we assist?

We can assist all types of law enforcement officials, including:

  • Police officers
  • Detectives
  • Forensics officers
  • Police dog unit officers
  • Highway patrol officers
  • Marine police officers
  • Aviation police officers
  • Riot squad officers
  • Mounted police officers
  • Transport officers
  • Tactical operations officers

Police home loans are also available to officials from all over Australia, including:

  • NSW Police
  • Victoria Police
  • Queensland Police
  • Tasmania Police
  • South Australia (SA) Police
  • Northern Territory Police
  • Western Australia (WA) Police
  • Australian Federal Police (AFP)
  • Australian Border Force
  • Australian Security Intelligence Organisation (ASIO)

Applying with the right lender is key!

Even if you’ve received overtime income for just three months, we may be able to help you find a lender that can consider 100% of this income.

Please call us on 1300 889 743 or complete our free online assessment form to discover if you qualify for a police home loan.