19 Aug 2025 Home Loans for Police Officers in Melbourne: What Every Officer Should Know About Buying a Home

Buying a home is a major milestone, but for those in the police force, the path can feel a little more complicated. Between shift work, overtime, and a unique income structure, many officers face hurdles when dealing with lenders who don’t fully understand their circumstances. 

With property prices climbing and interest rates shifting across Victoria, it’s more important than ever to understand your options. Melbourne’s mortgage market is broad, but not all lenders cater to the needs of law enforcement.

The good news? There are home loans for police officers that are tailored to meet these specific needs. This article covers what police officers need to know about buying a home in Melbourne, from loan types to the steps in the application process.

Let’s begin.

Let Us Handle Your Home Loan. Our brokers know which home loan options for police officers offer real value. For expert guidance, call EverLend us today at 03 7036 3356 to book your free consultation. 

What are Home Loans for Police Officers?

Home loans for police officers are specially tailored to meet the financial needs and work conditions of those serving in law enforcement. While similar to traditional loans, they offer added flexibility to suit the income patterns, shift work, and salary packaging common in police roles.

In Melbourne’s competitive housing market, these loans can make a real difference. Unlike standard loans, which may overlook the nuances of police income, officer-focused loans often come from lenders who understand the demands of the role and the nature of public service.

Key Features of Police Officers’ Home Loans: 

• Lower deposit requirements, sometimes starting from 5%

• Waived or reduced Lenders Mortgage Insurance (LMI)

• Flexible repayment options to suit irregular pay from shift work

• Access to offset accounts and redraw facilities

• Loan discounts or fee reductions for essential workers

• Lenders and brokers familiar with police service records and income details

These options aim to support police officers on their journey to owning a home, with loan products that reflect the realities of their everyday work.

Eligibility Criteria for Police Officers’ Home Loans

Police officers in Melbourne may have access to unique loan perks, but they still need to meet specific criteria set by lenders and government schemes. Here’s what lenders and support programs typically look for when assessing home loans for police officers in Victoria.

General Eligibility Requirements:

• Australian Citizenship or Permanent Residency: Applicants must be citizens or permanent residents to qualify for most home loans and government schemes.

• Employment with a Recognised Law Enforcement Agency: Must be currently employed in the Victorian police force, Australian Federal Police, or a related agency. Some lenders may also accept retired officers or those on long service leave.

• Minimum Employment Duration: Usually requires at least 6–12 months in the current role, or proof of consistent employment if recently transferred.

• Proof of Income: Includes base salary, allowances (like shift penalties and overtime), and any salary packaging arrangements. Payslips and service history are commonly required.

• Good Credit History: A clean credit report and satisfactory credit score are important, though some lenders offer leniency for essential services workers.

• Minimum Deposit: Typically 5% of the property’s value, especially if applying through schemes like the First Home Guarantee. Some lenders may require more based on the applicant’s Loan to Value Ratio (LVR).

• Intent to Occupy: For most grants and specialised loan products, you must live in the property as your primary residence.

• Property Type Restrictions: Government grants and some lender programs may exclude certain properties, such as off-the-plan purchases or rural dwellings.

Eligibility can vary between lenders, especially for loan products with LMI waivers, fee reductions, or police-specific rates. 

Not Sure If You’re Eligible? Let’s Find Out Together. If you’re a police officer, EverLend’s Melbourne mortgage brokers can assess your eligibility for grants, LMI waivers, and low-deposit home loans, so you don’t miss out. To book a free chat, call us now at 03 7036 3356. 

Home Loan Options for Police Officers (with Broker Support)

With high living costs and strong housing demand in Melbourne, finding the right home loan can be tough, especially with shift work and a demanding role. A skilled mortgage broker can help police officers access tailored options and pinpoint the most suitable loans and grants.

Here are some of the most relevant home loan options and government grants available to police officers in Victoria:

Variable-Rate Loan

This loan type offers flexibility, with repayments that adjust as interest rates change over time. It’s ideal for those who can manage some rate fluctuation in exchange for potentially lower costs.

Fixed-Rate Loan

Locks in your interest rate for a set term (usually 1–5 years), which can help with budgeting and provide stability during times of rising rates.

Split Loan

Combines both fixed and variable components, giving you rate security on part of the loan while keeping flexibility on the other portion.

Interest-Only Loan

Popular for investment loan strategies, you pay only the interest for a set period, freeing up cash flow, especially during the early years of ownership or investment.

First Home Owner Grant (FHOG) – Victoria

Provides a $10,000 grant for eligible first-home buyers purchasing a new property up to $750,000. Police officers can apply like any other first-time buyer if they meet the eligibility criteria.

First Home Guarantee (under Housing Australia)

Allows eligible first-home buyers to purchase with just a 5% deposit and no Lenders Mortgage Insurance. Police officers often qualify based on employment stability and income levels.

Family Home Guarantee

Supports eligible single parents (including police officers) with dependents to buy a home with a 2% deposit. Great for single-officer households juggling both career and parenting.

How to Apply for a Police Officer’s Home Loan

Here’s a step-by-step look at how to apply for a home loan as a police officer:

1. Assess Your Borrowing Power: Before anything else, find out how much you can afford to borrow. Use online calculators or speak with a broker who can factor in shift penalties, overtime, and salary packaging.
2. Check Your Credit Report: A clean credit report strengthens your application. Reviewing your credit history early allows you to fix any issues before lenders take a look.
3. Gather Required Documents: Lenders will ask for ID, payslips, bank statements, tax returns, and employment details. If you’re in the Victorian police force or Australian Federal Police, service records may help.
4. Work With a Mortgage Broker: A mortgage broker who specialises in working with police officers, such as EverLend, can compare loan products, explain terms and conditions, and help you access home loan perks like LMI waivers or fee discounts.
5. Get Pre-Approval: Pre-approval confirms how much a lender is willing to offer. It’s not a guarantee, but it gives you a clear budget and helps you act quickly in Melbourne’s fast-moving market.
6. Choose Your Loan Type: Decide between a variable rate, fixed-rate, split, or interest-only loan. Your broker can match these options to your income, financial goals, and preferred repayment structure.
7. Find a Property and Make an Offer: Once you’ve found a suitable home, you’ll sign a sale agreement and provide a deposit. Your lender will then begin formal approval and property valuation.
8. Formal Loan Approval: If the property passes valuation and all documents are in order, the lender issues formal approval. This is the green light to proceed to settlement.
9. Review Costs and Prepare for Settlement: Aside from the deposit, plan for stamp duty, legal fees, building inspections, and possibly Lenders Mortgage Insurance (unless waived). Your broker or conveyancer will guide you through it.
10. Settlement and Moving In: On settlement day, your lender transfers funds to the seller. You get the keys, and your repayments officially begin. Some lenders offer offset and redraw options from day one.

Working with the right broker ensures you understand each step of the loan process, from pre-approval through to settlement, while making the most of every police-specific benefit available in Victoria.

We’ll Help You Tick Every Box for Eligibility—No Guesswork Needed. Avoid delays and confusion. Let EverLend’s Melbourne brokers walk you through the full home loan for police officers application process, eligibility checks, and all the paperwork. Call 03 7036 3356 today to book your free consultation. 

FAQs

Do police get better home loans?

Police officers in Australia may access special home loan offers, with some lenders, especially those linked to the Police Association of Victoria, providing lower rates, waived fees, and flexible terms, making these loans more appealing than standard options.

What salary do you need for a $500,000 loan?

To qualify for a $500,000 home loan application, most borrowers need a combined annual income of $90,000–$110,000, depending on debts and expenses. Members of the Australian police force may qualify more easily, as lenders value the stable income and job security of public servants.

Do police officers pay LMI?

Police officers may have Lenders Mortgage Insurance (LMI) waived, especially when applying through brokers or lenders linked to the Police Association of Victoria. While not guaranteed, many lenders offer this to public servants due to their lower risk. Always compare offers and check the comparison rate to confirm if LMI applies.

Can police officers in Melbourne get home loans with a low deposit?

Yes, through the First Home Guarantee and certain lenders offering low-deposit home loans, many officers can buy with as little as 5% down.

How can mortgage brokers help police officers with home loans?

Mortgage brokers help police officers by matching them with lenders who understand police income structures like shift work and allowances. They also assist in accessing exclusive benefits such as LMI waivers, loan discounts, and government grants.

What should police officers consider when choosing where to buy a home in Melbourne?

Police officers should consider proximity to their station, commute times, and overall lifestyle when choosing between suburbs in Melbourne. If you’re a police officer and a first-time buyer, check out our guide to best Melbourne suburbs to live in.

Final Thoughts

Buying a home is a big step, and for those in the police force, having the right support makes all the difference. From tailored home loans for police officers to exclusive benefits like LMI waivers and government grants, there are real advantages available, especially when you know where to look. 

Working with an experienced Melbourne mortgage broker who understands the unique demands of police work can help you access the right loan product with confidence. Get in touch with our team at EverLend if you need help getting started or want expert advice tailored to your situation.

For more information and to book a free consultation, call us at 03 7036 3356.