First Home Buyer Grants, Schemes and LMI Waivers: What Police Officers Can Do to Buy a Home

Police pay often includes overtime and allowances, and shift work and postings can affect where and when you buy, so the full picture of income and timing matters. The RBA raised the cash rate by 0.25 percentage points to 4.85% on 3 November, and the ABS reported annual inflation of 4.3% in the year to September. Grants, concessions and LMI options can reduce the cash and insurance you need upfront, and this guide covers what is available to police officers.

Key takeaways

• The 5% Deposit Scheme has no income caps, no place limits and no LMI, so it's the first thing to check.
• Every state and territory has a grant, a stamp duty concession or both, and most favour new homes.
• A few lenders waive or pay LMI for sworn police officers, but conditions differ.
• Overtime and allowances are assessed differently by different lenders, so check early.
• Some of these can be used together depending on the scheme and state, so check each one's conditions.

Federal help: deposit schemes and super

Three federal options can help you get into a home sooner: a low deposit scheme, shared equity and a super release. The options in this guide are for sworn officers, and unsworn staff are not covered. Lenders also vary in how they assess overtime and allowances, so ask early how yours will be treated.

5% Deposit Scheme

The 5% Deposit Scheme lets you buy with a deposit as low as 5%, or 2% for single parents and legal guardians, with no LMI. The government backs part of the loan instead. It has had no income caps and no limit on places since 1 October 2025, and Treasury notes that property price caps rose at the same time.

You can use it if you are a first home buyer or haven't bought in the last 10 years. Single parents and guardians with a dependent can use the 2% stream even if they have owned before. You apply through a Participating Lender as part of a home loan application, not directly.

After pre-approval you have 90 days to find a home and sign a contract. Price caps vary by location, so check the price cap tool for your area. You must live in the home as an owner-occupier, or the lender may require LMI or other costs.

Help to Buy

Help to Buy is shared equity, which means the government owns part of your home alongside you. It contributes up to 30% of an existing home's price, or up to 40% of a new home's, and you need a deposit of at least 2%. When you sell or buy out the government's share, it shares in any gain or loss in proportion to its contribution.

Income caps apply from 1 July 2026 to 30 June 2027:

• $103,000 for a single applicant
• $165,000 for single parents and joint applicants

Applicants must be Australian citizens aged 18 or over who don't own property in Australia or overseas, and must live in the home. Help to Buy can't generally be combined with other government help for the purchase, such as another shared equity scheme or a state or territory loan. Stamp duty concessions and grants are still allowed.

First Home Super Saver Scheme

The First Home Super Saver Scheme lets you release voluntary super contributions towards a first home. The ATO says you can release up to $15,000 a year, to a total of $50,000. Non-concessional contributions release in full and concessional contributions release at 85%, both with associated earnings.

The assessable amount goes in your tax return with a 30% tax offset, so speak with an accountant about how it affects you. The ATO also says you must request a determination before ownership transfers, which is generally before settlement. You must move in as soon as practicable and live there for at least 6 of the first 12 months. Eligibility is individual, so each partner can use their own contributions for the same property.

State and territory grants and stamp duty

Every state and territory offers something, the rules differ, and most grants are for new homes only. Confirm the current details with your state or territory revenue office before relying on them.

For NSW, VIC, WA, SA, TAS and the ACT, check the grant amounts, price limits and stamp duty concessions with the relevant state or territory revenue office.

Prior ownership rules matter more than most buyers expect. Several states exclude you if you or your partner have owned a home before, which can catch people who owned a share in a home before a separation.

Grants and concessions depend on the state where you buy. Postings can mean buying in a different state from where you currently serve, so check the rules for the place you plan to buy.

Five ways to avoid or reduce LMI

You can avoid or reduce lenders mortgage insurance (LMI) in five main ways. LMI usually applies when you borrow more than 80% of a property's value, known as a loan to value ratio (LVR) above 80%. It protects the lender, not you, and at 20% equity it generally doesn't apply.

1. Use the 5% Deposit Scheme, which removes LMI on a deposit as low as 5%, subject to price caps and a Participating Lender.
2. Qualify for a profession LMI waiver, where LMI would normally apply but isn't charged because of your job.
3. Choose lender-paid LMI, where the loan is still insured but the lender pays the premium, which is reflected in the pricing.
4. Consider a no-LMI product, though availability and conditions vary by lender.
5. Save a larger deposit.

A waiver saves the LMI cost, but compare the rate, fees and features too, because risk fees, lender-paid LMI and different pricing can sometimes cost more over time than paying LMI. Lender criteria change often, and all lending is subject to credit approval.

Can police officers avoid paying LMI?

Some lenders waive LMI for sworn police officers, which means LMI would normally apply but isn't charged because of your job. Others offer lender-paid LMI, where the loan is still insured but the lender pays the premium, which is reflected in the pricing. Here is an example available at the time of writing, and a lender missing from this list may still have an option, as not every lender has been reviewed. You can read more on our page about LMI waivers for police officers.

Lenders that waive LMI for police officers

• People First Bank: up to 90% LVR under its Essential Services Professionals Package, for loans up to $1.2m.

How to compare them

• Eligibility differs, so check each lender's income, registration, work history and employment conditions against your situation.
• Several options are for buying an established home, so check this against what you plan to buy, as new homes, off-the-plan purchases and construction may be excluded.
• A waiver saves the LMI cost, but compare the rate, fees and features too, and weigh it against the 5% Deposit Scheme on total cost.

Lender criteria change often, and a broker can check which options you qualify for. All lending is subject to credit approval.

How to combine the options

You combine these options by working through them in a set order, starting with federal eligibility and finishing with prior ownership checks.

1. Check federal eligibility first: the 5% Deposit Scheme and Help to Buy suit different buyers, and Help to Buy can't generally be used alongside other government help for the purchase.
2. Add your state or territory support: the grant, the stamp duty concession and whether the home needs to be new.
3. Start a super release early: contributions are made in advance and an ATO determination is needed before settlement.
4. Match your situation to an LMI option and compare it against the 5% Deposit Scheme on total cost, not just on LMI.
5. Check prior ownership and residency rules: most programs require you to live in the home, often for 6 to 12 months, and several exclude people who have owned before.

Price caps and income caps decide more outcomes than the headline amounts, so confirm them for the exact property and your income before you sign a contract. Rules, caps and dates change and apply on the contract date.

Frequently asked questions

Do lenders count overtime and allowances?

Lenders vary in how they assess them. Having a solid history and recent payslips helps.

Do the LMI options cover unsworn police staff?

No. The options in this article are for sworn officers.

Are grants available for established homes?

Mostly no, as most grants are for new homes. Stamp duty support does cover established homes in some states.

Small steps taken early can give you more options later, whether you want a low deposit loan or a full home loan for police officers. Call one of our team or book an appointment at a time that suits you with [Book an appointment], and bring recent payslips, proof of your sworn status and your savings records.

This article is general information only and doesn't consider your personal circumstances. Grants, concessions and lender policies change, and all lending, including any LMI waiver, is subject to lender criteria and credit approval. Speak with your accountant about tax.

Frequently Asked Questions