Home loans for police officers
No lender whose policy document we hold names police for a lenders mortgage insurance waiver. We hold dated policies for eleven lenders' profession waivers, and none of them lists police officers, sworn or civilian. If you've seen a police offer on a lender's website, send it to me and I'll confirm its terms on your application before you rely on it. And banking with a police mutual doesn't, on its own, waive mortgage insurance.
Sworn officer or civilian staff: it changes the answer
Sworn officers. Where a lender writes a police offer, it's usually for sworn officers. Have your rank and service details ready.
Civilian staff. Civilian roles are often left out of police offers, even where you can join a police bank or credit union. Check the exact eligibility wording before you count on one.
Banking with a police mutual isn't an LMI waiver
Police banks and credit unions are member-owned lenders that police and their families can join. Membership can bring member pricing, but a membership isn't the same as a waiver of lenders mortgage insurance. Unless the lender's own terms say it waives LMI for you, expect to pay it once you borrow more than 80% of the value. Ask the question directly, in writing, before you assume.
The same is true of other professions' mutuals: a bank's name tells you who it was set up for, not what it waives.
What avoiding LMI is worth, in dollars
An illustration, not a client file. You buy a $700,000 home with a 10% deposit and borrow $630,000. On one insurer's rate card we hold, lenders mortgage insurance on that loan would be about $16,900, or about $16,600 for a first home buyer. Borrowing to 90% with no LMI would save you that amount.
When taking the waiver costs more than paying LMI
A waiver is only a saving if the rate is close. On the same $630,000 loan over 30 years, a rate 0.25% higher costs about $1,600 in extra interest in the first year, and about $15,700 over ten years. Keep the loan longer than about eleven years and the higher rate has cost more than the LMI you avoided.
So compare the whole cost: the rate, the fees, and how long you'll keep the loan, not just whether there's LMI.
How your shifts, overtime and allowances are counted
Base salary is counted in full.
Shift allowances and penalty rates are usually counted when they're regular and shown on your payslips, though some lenders count less than all of it.
Overtime is often shaded or needs a history behind it, commonly shown on your payslips and last year's income statement.
Higher duties and court time are irregular, so lenders look at how long you've had them and whether they'll continue.
How much of your pay a lender counts can change how much you can borrow more than the rate does. Send your payslips and I'll show you how different lenders would read them.
Recruits and probationary constables
Lenders like to see time in the job, and a probation period can be a reason for a lender to hold back. Some lenders are comfortable with a new officer on a permanent contract with a clear salary; others want you past probation. If you're a recruit, ask before you sign a contract on a home, and have your letter of offer and first payslips ready.
If your partner isn't in the force
Most home loans are joint, and a profession offer usually depends on one person's job. Some offers need only one borrower on a joint application to be eligible; check the wording. Your partner's income still counts towards what you can borrow in the usual way.
First home buyers have another route
If you're buying your first home, the government's 5% Deposit Scheme lets you buy with a 5% deposit and no lenders mortgage insurance, whatever your job, within a price cap for your area. It isn't a police offer, but for many first home buyers it's the better one.
Questions police ask us
No lender whose policy document we hold names police for an LMI waiver (as of 1 October 2026). You can still avoid LMI with a 20% deposit, or as a first home buyer through the 5% Deposit Scheme.
Buying as a police officer?
Tell me whether you're sworn or civilian, which force, your deposit and roughly the price. Send your latest payslips if you have them. I'll tell you whether any lender would waive LMI for you, how they'd count your shifts, and whether the waiver is worth it.
You'll hear back within the hour in business hours, and by 9am the next business day after hours.
Sources
- 1
Money Brain's lender policy records: eleven lenders' profession LMI policies, read 9 August 2026, some re-checked 1 October 2026.
- 2
The illustrations: Money Brain's arithmetic on one insurer's LMI rate card and on the stated rates.
Updated 2 October 2026