Raise Finance is a member of the Police Home Loans Cooperative (police.com.au). We believe that those that serve the community should be able to live in the community of their choosing. We have a strong understanding of police offer and '000 Emergency Services' needs, and we work relentlessly to ensure you live in the home of your choice.
There are no limits to the police services and officers we work with. We also work with nurses, doctors, firefighters, and military personnel to source a suitable product given your unique employment position.
How Much May Police Borrow?
Generally speaking, police officers may often qualify for various home loan exceptions. Your employment is considered stable, and many banks reward your service to the community.
- 95^% Loans. Standard loan qualification applies. You may borrow up to 95% of the purchase price (or 95% LVR). In many cases LMI will not apply, or discounts may be applied. You may borrow up to 100% of the purchase price with a guarantor.
- Special Rates. We have excellent relationships with our panel of lenders, and we often source unpublished or negotiated rates for emergency services groups.
Probationary Qualification
Many banks will consider your application during your 12-month probationary period. In some cases a premium may be applied to the rate or LMI but this is the exception rather than the rule. One of the issues that may present a problem is that some lenders require ‘stable’ employment without exception (Genworth being one example) – this means that they’ll want to see a full 6-months of employment.
Some lenders may accept that your income will increase (with written evidence) but this is normally applicable after you’ve completed your pre-Constable checks and you’re waiting on your stripes.
If you’re in your probationary period you should talk to us for a full evaluation.
Police Overtime
Overtime is typical in the police service, and it is often significant – particularly in some section of the Force. Many banks will shave overtime to 80% or lower for standard borrowers but police will often have their overtime evaluated in full with written evidence. As an essential emergency services worked various exceptions may be applied to your application.
You should provide us with the following:
- An employment letter confirming that you have consistently received overtime over a one to two-year period.
- Two of your most recent payslips
- Your most recent group certificate
You should contact us for more information, and an early no-obligation consultation.
Secondary Employment
It’s typical for police to have secondary employment, or ‘User Pays’ employment (often considered to be overtime since it’s on the same payslip).
- Secondary employment should be in a closely related field, such as general security, close personal protection, guard-house work etc.
- Your income from secondary employment may be evaluated as a percentage (normally 50% to 80%, depending upon the lender) if you cannot demonstrate that you have had consistent work history over a 12-24 month period. Some lenders will consider a shorter secondary work history if you’re in a strong financial position.
Salary Sacrificing
It’s not uncommon for police officers to salary sacrifice a vehicle, computer, or some other asset. Most banks will consider your gross income without taking salary sacrifice tax benefits into account, although we’ll talk to you about this based on the type of obligation you have made.
Many lenders will exclude the salary sacrificing as “tax-free” meaning that your sacrificed obligations won’t compromise your borrowing; 100% is added back into your assessable income.
A verified employment letter will usually be required.
85% LVR Home Loans
As mentioned, police and other law enforcement, and some related professionals, are considered a low-risk customer. As such, you may be able to borrow up to 85% of the purchase price without LVR being applied, potentially saving you thousands on a typical purchase.
Play with our LMI Calculator below to assess the significant savings made available via an 85% LVR and no-LMI Home Loan.
Generally speaking, the 85% LVR Home Loan requires the following:
- You must not be borrowing more than 85% LVR.
- Your maximum loan size must not usually exceed $1,500,000.
- Your credit file must be free of black marks.
- Your income should be strong (typically, police income is known and stable).
- You must have stable employment with a good work history – typically 6-12 months in your role, so consider your probationary status. This doesn’t include movements in your law enforcement role, so moving from Highway to Detectives will only impact upon your income, if either provides more income or overtime.
Must be for the purchase of a property (refinances accepted on a case-by-case basis).
You should contact us to discuss as we often have products that aren’t made available on our website.
Related Articles in our Blog
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