Profession loans · emergency services
Police home loans — 90% LVR with no LMI, and the income recognition gap.
Serving police officers across QPS, NSW Police, Vic Police, AFP and other state services qualify for the standard 90% LVR profession-package waiver at most major Australian lenders. That part is clean. The harder question — and where lender choice swings the file most — is how penalty rates, shift loadings, on-call allowances and overtime get counted. Same gross income, $80k-$150k difference in borrowing capacity depending on which lender writes the file.
Check borrowing capacity → LMI break-even →Take a typical constable rotating through 24/7 operational duties. Base annual salary ~$95,000; penalty rates and shift loadings add roughly $25,000-$35,000; on-call and overtime another $8,000-$15,000 in a busy year. Total gross around $130,000-$145,000.
Mainstream lender approach: count base salary at 100%, shade penalty rates and shift loadings to 80%, shade overtime to 60-80% with 12 months of consistency required. The assessable income comes out around $112,000-$120,000. At a 7× DTI cap that services $780k-$840k.
Police-friendly lender approach: count base salary at 100%, penalty rates and shift loadings at 100% (treated as structurally stable shift-based income, not casual loading), overtime at 80% or 100% with 6 months consistency. The assessable income comes out around $135,000-$140,000. At the same 7× DTI cap that services $945k-$980k. The same officer's same payslip produces a $140k-$165k swing in borrowing capacity — on the same file, at the same point in time, with the lender choice being the only variable.
Who qualifies for the police package
Confirmed appointment to a state or federal police service is the eligibility document. Acceptance across the panel:
- Constables (confirmed) — universal acceptance at 90% LVR no LMI across the panel. Most common file shape we work.
- Senior constables, sergeants, senior sergeants — same 90% tier; some lenders extend small rate concessions for senior tenure.
- Detectives and specialist task force officers — same 90% tier; detective allowance treatment is the lender-level variable. Most lenders accept the allowance at 80-100% with 6-12 months in role.
- Inspectors and commissioned officers — universal acceptance; higher base income often shifts the file into stronger DTI capacity tiers.
- Probationary constables (post-academy, pre-confirmation) — accepted at most lenders, though a small number require completion of probation before the waiver applies.
- AFP officers — same eligibility as state services. Overseas deployment may require additional documentation but the waiver applies normally.
- Recruits in academy training — generally not eligible for the profession waiver. Income is academy stipend rather than serving officer pay; tenure is conditional on completing training. Transition point is academy graduation.
The income component map
Police income is structurally composite — base salary plus a bundle of allowances and loadings that mainstream lender calculators struggle to treat consistently. The components and how they're typically treated:
| Income component | Mainstream treatment | Police-friendly treatment |
|---|---|---|
| Base salary | 100% | 100% |
| Penalty rates (weekend, public holiday) | 80% shaded | 100% |
| Shift loadings (afternoon, night) | 80% shaded | 100% |
| On-call allowance | 60-80%, 12mo history | 100%, 6mo history |
| Overtime | 60-80%, 12mo | 80-100%, 6mo |
| Detective allowance | 80%, 12mo in role | 100%, 6mo in role |
| Qualification / weapons allowance | 80% | 100% |
| Annual leave loading | 100% (annualised) | 100% (annualised) |
Worked example — same officer, two lenders
Constable, $95k base + $32k penalty/shifts + $12k overtime/allowances
- Gross income (PAYG summary)
- $139,000
- Mainstream assessable income
- $117,400 (base + 80% shaded)
- Police-friendly assessable
- $137,800 (base + 100% acceptance)
- Borrowing capacity at mainstream (7× DTI)
- ~$821,000
- Borrowing capacity at police-friendly
- ~$964,000
Panel-typical police package — comparative table
Selected lenders that write the police-profession waiver. The "police-friendly" column indicates whether the lender treats penalty rates and shift loadings closer to 100% acceptance or shades them at 80%. Most files benefit from routing to the police-friendly side.
| Lender | Max LVR no LMI | Police-income treatment |
|---|---|---|
| CBA | 90% | 100% penalty rate acceptance with 6mo history. Strong on QPS and AFP. |
| Westpac | 90% | 100% penalty / shift loading acceptance. Police Bank brand also part of Westpac group. |
| NAB | 90% | 100% penalty rates; overtime shaded to 80% with 12mo history. |
| ANZ | 90% | 80% shading on penalty rates; mainstream methodology — usually not the best lender for police files with significant shift income. |
| Macquarie | 90% | 100% penalty rate acceptance. Strong on PAYG profession packages generally. |
| ING | 90% | 100% penalty rate / shift loading acceptance. Lean fee structure. |
| Bankwest | 90% | Strong for WA Police; full penalty rate acceptance with 6mo history. |
| Suncorp | 90% | QLD-aligned; strong for QPS-employed officers; 100% penalty rate acceptance. |
| Police Bank (Bank of Heritage Isle) | 90% | Police-specific mutual lender. Tight understanding of police income shapes; competitive rates for serving officers. |
Model your file before choosing the lender
For police officers with meaningful penalty rate / shift loading / overtime income, the borrowing capacity calculator runs the income shape across the panel and shows which lenders count what at what level. The panel spread is regularly larger than the LMI waiver itself.
Check borrowing capacity → LMI break-even →File-shape pitfalls — where the police package gets messy
- Overtime variability between busy and quiet years. Lenders use the lower of the most recent two years for overtime. Officers coming off a busy operational period (e.g. major incident response) into a quieter posting can see their assessable overtime drop. Pre-application timing matters where overtime is a material component.
- Recent role change between operational and administrative. Moving from frontline operational (high penalty rates) to administrative or training (largely base salary, fewer penalties) materially changes income mix. Lenders apply most-recent-shaded methodology — recent change can compress assessable income.
- WorkCover / restricted duties. Officers on restricted duties post-injury, or on WorkCover payments, present a mixed income shape. Most lenders accept the file with documentation; specialist police-friendly lenders treat the situation more sympathetically.
- Joint application where partner has a different income shape. Police + nurse couples (common combination) often have two profession-package eligibilities. Right lender choice can stack both waivers on the same file — worth modelling.
- Investment property with leveraged police income. Most lenders cap the investor waiver at 80% LVR. The penalty rate / shift loading treatment matters even more on investor files where servicing is tighter.
Quick FAQs
What LVR can a police officer borrow to without LMI?
90% LVR at most lenders running a profession-package waiver for emergency services. Confirmed appointment to a state or federal police service is the eligibility document.
How are penalty rates and shift loadings treated?
Lender choice matters most here. Police-friendly lenders count penalty rates and shift loadings at 100% with 6 months history; mainstream lenders shade at 80% with 12 months. The borrowing capacity gap on the same earnings is $80k-$150k.
Are detective and specialist task force allowances included?
Yes. Most lenders accept detective and specialist allowances at 80% with 12 months in role; police-friendly lenders at 100% with 6 months. Meaningful for senior constables in specialist roles where allowances are a significant share of income.
Do recruits and probationary constables qualify?
Probationary constables (post-academy, pre-confirmation) qualify at most lenders. Recruits in academy training do not — income is stipend, tenure is conditional on training completion.
Can the waiver be used for investment property?
Most lenders cap the police waiver at 80% LVR for investor. Penalty rate / shift loading treatment matters more on investor files where servicing is tighter.
How are AFP officers treated?
Same eligibility as state police. Overseas deployment requires additional documentation but the waiver applies normally.