How this borrowing power calculator works
It uses the same broad method lenders use: what's left each month after tax and living costs, tested at a higher rate.
Lenders don't ask what you'd like to borrow. They ask what you could still repay if rates rose. This calculator follows that serviceability method: it works out your after-tax income, takes away living expenses and other commitments, and turns the monthly surplus into a loan amount at your rate plus a 3 percentage point buffer, over your chosen term.
- 1
Your base pay
BaseYour salary, including any loading that's paid as salary, such as the NSW 11.5% loading or Victoria's built-in 13% penalty component. Lenders usually treat this as base income.
- 2
Your variable pay
The rangeShift allowances, penalties and overtime. The calculator shows three cases: none of it counted, 80% counted, and all of it counted.
- 3
Your costs
CommitmentsLiving expenses, other loan repayments and credit card limits. Cards are assessed at 3.8% of the limit a month, whether you use them or not.
- 4
The loan test
APRA bufferYour rate plus 3%, over your loan term. The result is the most the surplus could service at that test rate.
An estimate, not credit advice
This is general information and a rough estimate, not credit advice or a loan offer. Lenders use their own expense benchmarks, income rules and credit policies, and their figure can be higher or lower. We don't recommend any loan or lender.
How lenders assess police income
Police pay is a mix of base salary and roster-dependent pay. Lenders treat the two differently.
For most employees, income is a salary and lenders take it at face value. Police pay is different. A large share can come from shift allowances, weekend and night penalties, composites and overtime, which change with your roster. Lenders worry that this pay could stop if you move to a day role, so many shade it, average it or ask for a history before they count it.
Base salary
- Examples
- Award or agreement salary for your rank and increment
- How lenders often treat it
- Counted in full
Loading paid as salary
- Examples
- NSW 11.5% loading, Victoria's 13% penalty component
- How lenders often treat it
- Usually counted as base, because it's paid every fortnight regardless of roster
Percentage roster allowances
- Examples
- QLD 21% OSA, AFP 22% composite, TAS 28%, NT 23% Consolidated Allowance
- How lenders often treat it
- Often counted with payslip evidence; some lenders shade them
Per-shift penalties
- Examples
- NSW shift allowance, WA night shift payments
- How lenders often treat it
- Often averaged over recent payslips or a year
Overtime
- Examples
- Recall, held-over shifts, extra shifts
- How lenders often treat it
- Varies most: some lenders count 100% with a history, others shade or exclude it
| Type of pay | Examples | How lenders often treat it |
|---|---|---|
| Base salary | Award or agreement salary for your rank and increment | Counted in full |
| Loading paid as salary | NSW 11.5% loading, Victoria's 13% penalty component | Usually counted as base, because it's paid every fortnight regardless of roster |
| Percentage roster allowances | QLD 21% OSA, AFP 22% composite, TAS 28%, NT 23% Consolidated Allowance | Often counted with payslip evidence; some lenders shade them |
| Per-shift penalties | NSW shift allowance, WA night shift payments | Often averaged over recent payslips or a year |
| Overtime | Recall, held-over shifts, extra shifts | Varies most: some lenders count 100% with a history, others shade or exclude it |
General description of common practice. Each lender's credit policy is different; ask the lender or a broker how they treat your pay.
Some lenders say publicly how they treat police overtime. P&N Bank says it takes 100% of your overtime into consideration. A broker, Hunter Galloway, reports that Westpac and St George count 100% of overtime and allowances for eligible frontline police but may still charge LMI. We haven't confirmed those bank policies on the banks' own sites.
For an officer earning a big share of pay on the roster, the lender's income policy can matter as much as the rate.
A worked example: a Queensland first-year constable on shifts
A first-year constable in Queensland earns $78,505 base (QPS's official rate, including the 2025 CPI uplift) and, in an operational shift position, the 21% Operational Shift Allowance of $16,486. They're applying alone with $3,200 a month of living expenses, a $5,000 credit card limit, no other debts and a 6% loan rate over 30 years.
Base pay only counted
$230,000
OSA ignored
80% of the OSA counted
$323,000
a common middle case
All of the OSA counted
$346,000
with payslip history
The gap between the first and last figure is about $116,000, purely from how one allowance is treated. Compare a NSW first-year constable on $92,576: because the loading is paid as salary, it's base income, and the same assumptions give about $329,000 with nothing variable at all. Use the calculator above with your own pay from the take-home pay calculator.
Probation, new starters and payslip history
New officers face two questions from lenders: is the job permanent, and how long have you had this income?
- Probation (from the force's own rules)
- 12 months as a Probationary Constable, then confirmed as Constable.
- Probation (from the force's own rules)
- Through week 116 of training (2 years 13 weeks), ending with the POL50124 Diploma of Policing.
- Probation (from the force's own rules)
- Graduates are sworn in as First Year Constables (Constable 1.1). The First Year Constable Program is about 12 months of station-based training under Field Training Officers and an Education and Training Officer; finishing it moves the officer to pay point 1.2. Probation is at least 12 months.
- Probation (from the force's own rules)
- 18 months as a Probationary Constable after graduation; transitional (interstate and international) officers serve 6 months.
- Probation (from the force's own rules)
- About 2 years in total for domestic recruits: 3 months operational after graduation as part of continuous training, then permanent appointment as Constable after a further 18 months (from a public summaries; not verified). Transition recruits serve 6, 9 or 12 months depending on recognised service.
- Probation (from the force's own rules)
- Recruits serve their first year on probation (recruitment site); under the Police Service Act 2003, non-commissioned appointment/promotion probation is up to 12 months as the Commissioner determines (extendable). Graduates are posted to a 24/7 station (Hobart, Glenorchy, Bridgewater, Bellerive, Launceston, Devonport, Burnie) for at least 2 years.
- Probation (from the force's own rules)
- Constables: to the second anniversary of commencement (2 years), Police Administration Act s.16A(3)(a). ACPOs: 12 months from commencement. ARP: 12 months including training (CA 2022 cl.70(d)). The Commissioner may shorten or extend probation (by up to 6 months at a time).
- Probation (from the force's own rules)
- Police graduates are probationary officers at Band 2.4 and stay there for at least 12 months and until the AFP workbook is signed off (by a supervisor who has supervised them for 3+ months), then move to 3.1. A formal probation period beyond this is not stated. PSO recruits start at 2.1 for at least 12 months, including training.
| Force | Probation (from the force's own rules) |
|---|---|
| NSW Police | 12 months as a Probationary Constable, then confirmed as Constable. |
| Victoria Police | Through week 116 of training (2 years 13 weeks), ending with the POL50124 Diploma of Policing. |
| QPS | Graduates are sworn in as First Year Constables (Constable 1.1). The First Year Constable Program is about 12 months of station-based training under Field Training Officers and an Education and Training Officer; finishing it moves the officer to pay point 1.2. Probation is at least 12 months. |
| WA Police | 18 months as a Probationary Constable after graduation; transitional (interstate and international) officers serve 6 months. |
| SAPOL | About 2 years in total for domestic recruits: 3 months operational after graduation as part of continuous training, then permanent appointment as Constable after a further 18 months (from a public summaries; not verified). Transition recruits serve 6, 9 or 12 months depending on recognised service. |
| Tasmania Police | Recruits serve their first year on probation (recruitment site); under the Police Service Act 2003, non-commissioned appointment/promotion probation is up to 12 months as the Commissioner determines (extendable). Graduates are posted to a 24/7 station (Hobart, Glenorchy, Bridgewater, Bellerive, Launceston, Devonport, Burnie) for at least 2 years. |
| NT Police | Constables: to the second anniversary of commencement (2 years), Police Administration Act s.16A(3)(a). ACPOs: 12 months from commencement. ARP: 12 months including training (CA 2022 cl.70(d)). The Commissioner may shorten or extend probation (by up to 6 months at a time). |
| AFP | Police graduates are probationary officers at Band 2.4 and stay there for at least 12 months and until the AFP workbook is signed off (by a supervisor who has supervised them for 3+ months), then move to 3.1. A formal probation period beyond this is not stated. PSO recruits start at 2.1 for at least 12 months, including training. |
Probation in policing is unusual. You're a sworn, salaried officer from graduation, but your appointment isn't confirmed until probation ends. Some lenders are comfortable with that, especially those with police packages. Others treat probation like any new job and may want to see it completed. One broker reports that People First Bank's Essential Services Package is for sworn police only, with no probationers. We haven't checked that on the lender's own site.
What to have ready
- ✓ Your two most recent payslips, and more if you rely on overtime
- ✓ A letter of employment confirming rank, salary and status
- ✓ Your PAYG payment summary or income statement from myGov
- ✓ Evidence of roster allowances being paid regularly
- ✓ A record of savings: lenders like to see genuine saving
- ✓ Details of HELP debts, cards and buy now pay later accounts
If you've just moved from academy pay to constable pay, your history will look short. A broker can tell you which lenders will use your current salary and allowance rate rather than averaging in the lower academy months.
The 3% APRA buffer and the debt-to-income limit
Banks regulated by APRA must check that you could keep paying if your rate rose by at least 3 percentage points. APRA reviewed its settings on 28 May 2026 and kept the buffer at 3 percentage points. So a 6% loan is tested at 9%, which cuts borrowing power a lot.
Tested at 6% (no buffer)
$433,000
QLD example, 80% of OSA
Tested at 9% (with buffer)
$323,000
what lenders must use
Actual repayment at 6%
$1,934
a month, on the buffered amount
Since 1 February 2026, APRA has also limited high debt-to-income lending: a bank can make no more than 20% of its new owner-occupier loans, and separately 20% of its new investor loans, at a debt-to-income ratio of six times or more. In our example, borrowing the top figure would be about 3.6 times gross pay. That's well under six times, but larger loans relative to income, such as a single officer buying near a price cap, can get closer.
Deposits, LVR and lenders mortgage insurance
Your loan-to-value ratio (LVR) is the loan divided by the property's value. Below 80% LVR, lenders don't normally charge lenders mortgage insurance (LMI). Above it, LMI is usually payable, protecting the lender, not you, unless a waiver or government scheme applies.
2%
- Deposit on $700,000
- $14,000
- Loan
- $686,000
- LVR
- 98%
- LMI
- Payable unless under the 5% Deposit Scheme
5%
- Deposit on $700,000
- $35,000
- Loan
- $665,000
- LVR
- 95%
- LMI
- Payable unless under the 5% Deposit Scheme
10%
- Deposit on $700,000
- $70,000
- Loan
- $630,000
- LVR
- 90%
- LMI
- Usually payable unless waived (some police waivers go to 90% LVR)
20%
- Deposit on $700,000
- $140,000
- Loan
- $560,000
- LVR
- 80%
- LMI
- Not normally needed at 80% LVR or below
| Deposit | Deposit on $700,000 | Loan | LVR | LMI |
|---|---|---|---|---|
| 2% | $14,000 | $686,000 | 98% | Payable unless under the 5% Deposit Scheme |
| 5% | $35,000 | $665,000 | 95% | Payable unless under the 5% Deposit Scheme |
| 10% | $70,000 | $630,000 | 90% | Usually payable unless waived (some police waivers go to 90% LVR) |
| 20% | $140,000 | $560,000 | 80% | Not normally needed at 80% LVR or below |
General description. LMI premiums are set by the insurer and lender and aren't shown. Stamp duty, legal and lender fees come on top of the deposit.
The cost of LMI can run into thousands of dollars, which is why police waivers matter. Stamp duty is a state tax with its own first home buyer concessions: check your state revenue office and our first home buyer guide for NSW police.
Police LMI waivers: who offers them, and the catch
Some lenders waive LMI for police up to 90% LVR. Read the conditions before you apply.
P&N Bank
- What it says for police
- LMI waived up to 90% LVR for state or federal police and police staff (including auxiliary officers and employees). Says it counts 100% of overtime.
- Watch out for
- The waiver does not apply to broker-referred loans. The $1,500 cashback isn't available with the LMI waiver. Minimum loan $250,000 for cashback.
BankVic
- What it says for police
- Says LMI waivers are available up to 90% LVR. Founded as the Police Credit Co-operative; membership is for police, emergency, health and government workers.
- Watch out for
- Its page doesn't spell out which members or locations qualify. Earlier reports limited some waivers by occupation and location. Confirm in writing.
People First Bank (Essential Services Package)
- What it says for police
- Reported by a broker: sworn police, 90% LVR with no LMI, maximum $1.2 million, income floor.
- Watch out for
- Not checked on the lender's own site. Reportedly excludes probationers.
Police Bank
- What it says for police
- Police Value loan for current and retired officers of any Australian force.
- Watch out for
- No police LMI waiver confirmed in our research.
| Lender | What it says for police | Watch out for |
|---|---|---|
| P&N Bank | LMI waived up to 90% LVR for state or federal police and police staff (including auxiliary officers and employees). Says it counts 100% of overtime. | The waiver does not apply to broker-referred loans. The $1,500 cashback isn't available with the LMI waiver. Minimum loan $250,000 for cashback. |
| BankVic | Says LMI waivers are available up to 90% LVR. Founded as the Police Credit Co-operative; membership is for police, emergency, health and government workers. | Its page doesn't spell out which members or locations qualify. Earlier reports limited some waivers by occupation and location. Confirm in writing. |
| People First Bank (Essential Services Package) | Reported by a broker: sworn police, 90% LVR with no LMI, maximum $1.2 million, income floor. | Not checked on the lender's own site. Reportedly excludes probationers. |
| Police Bank | Police Value loan for current and retired officers of any Australian force. | No police LMI waiver confirmed in our research. |
Offers change and can be withdrawn. This is not a recommendation of any lender; check the current terms with the lender before applying.
The P&N Bank waiver is direct only
P&N Bank's terms say its LMI waiver doesn't apply to broker-referred loans. If you want that waiver, you'd need to apply with P&N Bank directly. That includes loans introduced through the form on this page: a broker we introduce you to couldn't get you P&N's waiver. Ask any broker which police waivers they can access before you proceed.
A waiver doesn't make a loan cheaper overall if the rate or fees are higher. Compare the total cost over the first few years, not just the LMI saving. Our guide to LMI waivers for police goes into more detail.
The Australian Government 5% Deposit Scheme
Formerly the First Home Guarantee. Since 1 October 2025 it has no income caps and no limit on places.
Under the scheme, the government guarantees part of your loan so a participating lender can lend up to 95% of the home's value (98% for single parents and legal guardians) without LMI. There's no income cap and no waiting list. Police are eligible on the same terms as anyone else.
Main eligibility criteria (fact sheet, 1 July 2026)
- ✓ Australian citizen or permanent resident, aged 18 or over
- ✓ A first home buyer, or no home or land owned in Australia in the last 10 years
- ✓ Minimum 5% deposit (2% for single parents or legal guardians)
- ✓ Owner-occupier with principal and interest repayments, up to 30 years
- ✓ Apply alone or with one other person (single parents apply alone)
- ✓ The home is at or below the location's price cap
New South Wales
- Capital city and regional centres
- $1,500,000
- Rest of state
- $800,000
Victoria
- Capital city and regional centres
- $950,000
- Rest of state
- $650,000
Queensland
- Capital city and regional centres
- $1,000,000
- Rest of state
- $700,000
Western Australia
- Capital city and regional centres
- $850,000
- Rest of state
- $600,000
South Australia
- Capital city and regional centres
- $900,000
- Rest of state
- $500,000
Tasmania
- Capital city and regional centres
- $700,000
- Rest of state
- $550,000
Australian Capital Territory
- Capital city and regional centres
- $1,000,000 (all areas)
Northern Territory
- Capital city and regional centres
- $750,000 (Darwin)
- Rest of state
- $600,000
| State or territory | Capital city and regional centres | Rest of state |
|---|---|---|
| New South Wales | $1,500,000 | $800,000 |
| Victoria | $950,000 | $650,000 |
| Queensland | $1,000,000 | $700,000 |
| Western Australia | $850,000 | $600,000 |
| South Australia | $900,000 | $500,000 |
| Tasmania | $700,000 | $550,000 |
| Australian Capital Territory | $1,000,000 (all areas) | – |
| Northern Territory | $750,000 (Darwin) | $600,000 |
From firsthomebuyers.gov.au, read 9 October 2026. Regional centres include, for example, Newcastle and Lake Macquarie in NSW, the Gold Coast and Sunshine Coast in Queensland, and Geelong in Victoria. Use the official postcode search to check a property.
You must still meet the participating lender's own credit policy, so the scheme doesn't change how your shift and overtime pay is assessed. Compare it with a police LMI waiver: the scheme allows a deposit as low as 5%, while the waivers above stop at 90% LVR, so need at least 10%.
Know your real income first
Work out your take-home pay with your force's exact shift and overtime rules, then bring the figures back here.
Legitimate ways to increase your borrowing power
Things that usually help
- ✓Cutting credit card limits you don't use (each $1,000 of limit is assessed at $38 a month in this calculator)
- ✓Paying off a car loan or personal loan before applying
- ✓A steady payslip history of shift and overtime income
- ✓Applying with a partner's income
- ✓A longer loan term, if it suits your plans
Things that usually hurt
- ✕Buy now pay later accounts and new credit applications
- ✕A HELP debt, which reduces the net income lenders use
- ✕Living expenses well above the lender's benchmark
- ✕Changing roster or role just before applying
- ✕Relying on overtime with no history
Timing matters for police. If you're about to finish probation, move up an increment or start a roster that attracts an allowance, waiting a few pay cycles can lift the figure a lender will use. Pay rise dates for your force are on your salary page, such as NSW police salary or Queensland police salary.
Using a broker or going direct
Both can work. The right choice depends on which lender policies you need.
A mortgage broker compares lenders for you and is usually paid a commission by the lender after settlement. For police, the big advantage is knowing which lenders count your shift and overtime income in full. The disadvantage is that some police-specific offers, like P&N Bank's LMI waiver, aren't available through brokers.
The form below the calculator puts you in touch with a licensed mortgage broker. We haven't yet appointed a broker partner. Until we do, we'll email you the name of the broker we'd introduce you to, and nothing is shared until you reply to confirm. We don't give credit advice and don't recommend specific loans.
Questions to ask any broker
- How do your lenders treat my roster allowance and overtime?
- Which police LMI waivers can you access, and which are direct-only?
- Will you accept me while I'm on probation?
- How are you paid, and what commission will you receive?
Whichever route you take, read our guide to police home loans before you apply, and check your force's profile, such as the WA Police Force profile, for allowances that might count as income.
Free email alerts
Get told when police home loan offers change
LMI waivers, cashback offers and government scheme caps for police change through the year. We email you when a police-specific offer starts, ends or changes its rules.
- ✓New and withdrawn police LMI waivers
- ✓5% Deposit Scheme price cap changes
Frequently asked questions
How much can a police officer borrow for a home loan?
It depends on income, expenses, debts and how much of your shift and overtime pay a lender counts. As a rough guide, our calculator estimates a NSW first-year constable on $92,576 with $3,200 a month of expenses could borrow about $329,000 at a 6% rate. A licensed broker or lender can give you an exact figure.
Do banks count police overtime and shift allowances?
Many do, but the rules vary. Some lenders count 100% of overtime for police with a payslip history; P&N Bank says it takes 100% of your overtime into account. Others shade variable income or need a longer history. Loadings paid as salary, such as the NSW 11.5% loading, are usually treated as base pay.
Can police get a home loan without paying LMI?
Yes, through some lenders. BankVic says LMI waivers are available up to 90% LVR, and P&N Bank waives LMI up to 90% LVR for state and federal police and police staff. P&N's waiver doesn't apply to broker-referred loans, so you'd need to apply direct. The government's 5% Deposit Scheme also avoids LMI for eligible first home buyers.
Can I get a home loan while on probation in the police?
Often, yes, but policies differ. Some lenders treat sworn officers on probation like any permanent employee; at least one police package reportedly excludes probationers. Probation periods range from 12 months to about two years depending on the force. A broker can tell you which lenders accept probationary officers.
What is the APRA serviceability buffer?
Banks must check you could still afford repayments if your interest rate rose by at least 3 percentage points. APRA confirmed on 28 May 2026 that the buffer remains at 3 percentage points. So a loan at 6% is tested as if the rate were 9%, which reduces how much you can borrow.
Can police use the First Home Guarantee or 5% Deposit Scheme?
Yes, if you meet the scheme's criteria like any other buyer: an Australian citizen or permanent resident aged 18 or over, a first home buyer (or no property owned in Australia in the last 10 years), buying to live in, under the location's price cap. Since 1 October 2025 there are no income caps.
Does Police Pay Australia give credit advice?
No. We don't hold an Australian Credit Licence and don't recommend loans or lenders. This page explains how lending works in general. If you use the form, we introduce you to a licensed mortgage broker, and we'll confirm who that is with you before sharing anything.
Is a broker or going direct better for police?
Each has trade-offs. A broker can compare many lenders' policies on shift and overtime income. But some police LMI waivers, such as P&N Bank's, are direct-only, so a broker-referred loan from that lender would lose the waiver. Ask any broker whether the lenders they suggest offer police waivers through brokers.
Evidence
Sources and how we checked them
Every figure on this page comes from the sources below, read on 10 October 2026. Pay rates and rules change when new agreements are made, so check the source for the date you're reading this. Where we couldn't confirm something from an official source, the page says so instead of guessing. Spotted an error? Read our corrections policy.
- APRA: macroprudential settings maintained (28 May 2026) — 3% buffer and DTI limits
- APRA: activation of debt-to-income limits — DTI limit from 1 February 2026
- P&N Bank: Essential Services Offer — LMI waiver to 90% LVR, not for broker-referred loans
- BankVic: home buying — LMI waivers up to 90% LVR
- Australian Government 5% Deposit Scheme fact sheet (1 July 2026) — eligibility
- firsthomebuyers.gov.au: property price caps — caps by state
- Hunter Galloway: police LMI waivers — broker report on People First Bank and major-bank overtime policy
- ATO: Tax rates for Australian residents — net income in the calculator
Related guides
Tools and calculators
More in this series
General information, not advice. This guide explains published rules and rates. It doesn't consider your personal circumstances and isn't financial, legal, tax or credit advice. Confirm anything you rely on with your force, your police association, the ATO or a licensed professional.