Police officers have access to exclusive home loan benefits, including Lenders Mortgage Insurance (LMI) waivers, reduced deposit requirements, and tailored lending policies. If you’re a law enforcement professional dreaming of owning a home, these special offers can help you save thousands of dollars and fast-track your journey to homeownership.

In this detailed guide, we’ll break down everything you need to know about home loans for police officers, how to qualify for LMI waivers, what documents you’ll need, and how working with a local mortgage broker can make the process seamless and stress-free.

What Is LMI and Why It Matters to Police Officers

Lenders Mortgage Insurance (LMI) is a fee that lenders charge when your deposit is less than 20% of a property’s value. It’s meant to protect the lender, not the borrower, if you can’t repay your mortgage. For many Australians, especially first-home buyers, LMI adds a significant upfront cost.

Here’s the good news: some lenders waive LMI for police officers, allowing you to borrow up to 90%, and in some cases 95%, without paying this premium. That can mean instant savings of $10,000–$30,000, depending on the property price and loan structure.

Why do lenders do this? Because they view police officers as stable, low-risk borrowers due to the nature of their employment.

How Much Can Police Officers Save With an LMI Waiver?

Let’s put it into perspective. If you’re buying a $700,000 home in Logan and you only have a 10% deposit, the LMI cost could easily be over $18,000. That’s money you’d either have to pay upfront or add to your loan amount.

By using a police LMI waiver, you completely avoid that cost. The savings could go towards:

• Stamp duty and legal fees
  
  
• Moving costs
  
  
• New furniture
  
  
• Keeping a financial buffer in your offset account

This isn’t just a bonus. It could be the difference between buying now and waiting another few years to save a 20% deposit.

Who Qualifies for the Police LMI Waiver?

To be eligible, most lenders require you to meet these basic conditions:

• Be a sworn police officer (state or federal)
  
  
• Provide proof of employment, such as a payslip or ID card
  
  
• Have at least a 10% deposit (some lenders allow 5%)
  
  
• Meet standard lending criteria like a clean credit record and sufficient income

Importantly, you don’t need to be a first-home buyer to access these waivers. Many lenders also allow joint applications, even if only one person is in law enforcement.

Which Roles Are Included?

The LMI waiver isn’t limited to general duties police. Most lenders also include:

• Detectives and investigation officers
  
  
• Highway patrol and tactical units
  
  
• Federal police and specialist branches (e.g. water police)
  
  
• Crime scene and forensic personnel
  
  
• Some protection services (check with your broker)

Administrative and unsworn staff usually do not qualify. Eligibility is generally limited to sworn officers.

Can a Police Officer Borrow More Than 90%?

Yes. Some specialist lenders allow eligible police officers to borrow up to 95% of the property value with no LMI. That brings your required deposit down to just 5%.

Even better, if you have a family guarantor, certain lenders may allow you to borrow up to 110% to cover stamp duty, conveyancing, and other costs.

Not all banks are this flexible, though. That’s where working with a local mortgage broker who knows the market and lender policies becomes invaluable.

How to Apply for a Police LMI Waiver

Applying is straightforward, but you’ll want to be strategic. Here’s a simple step-by-step process:

1. Check your eligibility – Confirm you meet the criteria for your preferred lender.
   
   
2. Get pre-approval – Apply for pre-approval through a broker or lender who offers police-specific waivers.
   
   
3. Gather documentation – Payslips, bank statements, ID, and proof of employment.
   
   
4. Choose your property – Find a home that fits your budget and loan conditions.
   
   
5. Finalise the loan – Submit your application with the waiver applied.
   
   
6. Settle and move in – Your LMI-free loan goes through, and you’re officially a homeowner!

Government Schemes to Combine With LMI Waivers

Police officers in Logan may also be eligible for federal or state-level incentives, such as:

• First Home Owner Grant (FHOG) – Up to $30,000 in QLD for new builds.
  
  
• First Home Guarantee (FHBG) – Buy with only 5% deposit and no LMI.
  
  
• Family Home Guarantee – Single parents can access loans with just a 2% deposit.
  
  
• Stamp duty concessions – Available for eligible first-home buyers.

These can stack with LMI waivers, but eligibility varies by scheme.

Boost Your Borrowing Power With Overtime and Salary Packaging

One major advantage of being a police officer is the consistent access to overtime. Some lenders include 80% of your overtime income in your borrowing capacity, but others may accept 100% if you’ve got a stable track record over 12–24 months.

Additionally, salary packaging, such as novated leases or allowances, can also be factored in by certain lenders. The more income the lender counts, the more you can borrow.

Working with a mortgage broker ensures these extra income streams are fully recognised, giving you more leverage when applying for a home loan.

Additional Home Loan Benefits for Police Officers

Aside from LMI waivers, here are other common home loan benefits police officers can access:

• Interest rate discounts for essential workers
  
  
• Fee waivers on application or ongoing package fees
  
  
• Cashback offers for new loans or refinancing (often between $2,000–$4,000)
  
  
• Better recognition of allowances and overtime income

These benefits vary by lender and aren’t always advertised, so they’re best accessed through a broker who can negotiate directly on your behalf.

Key Home-Buying Tips for Police Officers

• Keep a buffer: Don’t use every dollar for your deposit. Set aside emergency savings.
  
  
• Think long-term: Choose a loan with features like offset accounts or extra repayment options.
  
  
• Understand rate structures: Some loans with LMI waivers may have slightly higher interest rates. Compare total costs.
  
  
• Consider insurance: Life or income protection can help cover your mortgage if something unexpected happens.
  
  
• Consult professionals: Work with a local mortgage broker and, if needed, a financial advisor.

FAQs

Do police officers automatically qualify for LMI waivers?

No. You must meet each lender’s criteria and provide proof of your occupation and deposit amount.

Can I apply if I’m not a first-home buyer?

Yes. Many lenders extend the LMI waiver to repeat buyers as long as you meet the other conditions.

Is a higher interest rate charged when LMI is waived?

Some lenders may charge a slightly higher rate for loans above 80% LVR. Always compare the total loan cost.

Can overtime be used to boost my borrowing capacity?

Absolutely. Many lenders accept a portion, or even 100%, of consistent overtime income for police.

How long does loan approval take?

With all documents in order, pre-approval can take 1–3 business days. Full approval depends on the property and lender.

Can I combine a police LMI waiver with the First Home Guarantee?

Not usually. These benefits serve the same purpose, reducing or removing LMI, so most lenders won’t allow both.

Final Thoughts: Why Police Officers Should Act Now

If you're a police officer and ready to buy a home, now’s the perfect time to explore your options. With generous LMI waivers, low deposit requirements, and access to tailored loan products, you could be closer to homeownership than you think.

Want personalised advice and access to over 30 trusted lenders for your home purchase in Logan? Let Cube Loans, your trusted Logan mortgage brokers, guide you through the process with expert care and zero pressure. We’ll help you compare lenders, secure LMI waivers, and maximise your borrowing power.

Call us today at 1800 774 756 to book your free home loan assessment.