If you’re a Queensland Police officer looking to buy your first home, there’s one mistake we see far too often.
Police members spend weeks comparing interest rates, but never compare how different banks assess their income.
The reality is that two lenders could look at exactly the same payslip and come up with two completely different borrowing capacities.
That could be the difference between buying your dream home or having to settle for something much smaller.
Your payslip is more complicated than most
Unlike many occupations, police officers don’t simply receive a base salary.
Depending on your role and roster, your income may include:
- Overtime
- Operational Shift Allowance (OSA)
- Night shift allowances (NOSA)
- Meal allowances
- Locality allowances
- Plain clothes / Detective allowance
- Stocking allowance
- Dog Squad allowance
- Other specialist or operational allowances (general duties annual bonus)
These additional payments often make up a significant portion of your annual income.
The problem is that not every bank treats them the same way.
Different lenders assess police income differently
This is one of the biggest reasons why choosing the right lender matters.
Some lenders may only include around 80% of your overtime and allowances when calculating your borrowing capacity.
Others may include 100%, provided your income history demonstrates it is regular and ongoing.
Imagine your overtime and allowances add up to $25,000 each year.
One lender may assess the full $25,000.
Another may only use $20,000.
That difference might reduce your borrowing capacity by tens of thousands of dollars.
When you’re trying to buy in today’s property market, that can make a huge difference.
The lowest interest rate isn’t always the best option
Many buyers naturally focus on whichever lender advertises the lowest rate.
While interest rates are important, they’re only one piece of the puzzle.
The best lender for a police officer is usually the one that:
- Assesses your overtime and allowances correctly
- Understands Queensland Police payslips
- Maximises your borrowing capacity
- Has policies suited to shift workers
- Offers competitive rates and features
Sometimes the lender with the absolute lowest advertised rate simply won’t lend you enough to buy the property you want.
Looking to buy with only a 5% deposit?
Many first home buyers can purchase a property using one of the Australian Government’s Home Guarantee Schemes.
These schemes can allow eligible buyers to purchase with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI).
However, not every lender participates in these schemes.
Only approved lenders are on the Government’s panel.
Choosing a lender that isn’t part of the scheme could mean missing out on significant savings.
An experienced mortgage broker will know which participating lenders are most likely to suit your individual circumstances.
Why working with someone who understands policing makes a difference
Buying your first home is stressful enough without having to explain your payslip to someone who has never seen one before.
That’s where working with someone who understands policing can really help.
Before becoming a mortgage broker, Dan spent 15 years as a Queensland Police officer, including six years as a detective.
I understand:
- Rotating rosters
- Night shifts
- Meal allowances in overtime
- Recall to Duty
- Specialist allowances
- Operational shift allowance
- The unique challenges that come with police employment
Because I’ve been there myself, I know which lenders generally assess police income more favourably and which policies can make the biggest difference to your borrowing capacity.
The right lender could help you buy sooner
There’s no single “best bank” for police officers.
The right lender depends on your income, deposit, allowances, goals and whether you’re eligible for Government support.
Taking the time to choose the lender that properly recognises your income can increase your borrowing power and put you in a stronger position when it’s time to make an offer.
If you’re a Queensland Police officer thinking about buying your first home, it’s worth speaking with someone who understands both policing and home lending before you apply.
A quick conversation today could save you thousands of dollars and help you secure the home you’ve been working so hard for.
