Police Bank Home Loan Lending Policy 2026

A Police Bank home loan requires bank membership and a separate credit assessment of the borrower’s income, contributions and residential security. Police Value has an occupational eligibility condition, while Goldrate accepts existing or prospective members who meet its borrower criteria. A police connection alone doesn’t establish that the borrower can afford the loan or that the property is acceptable.

Use the lender policy guides when assessing a different bank.

Confirm the Lender and Membership

Identify the lender as Police Bank Ltd, Australian Business Number (ABN) 95 087 650 799, before applying a policy to the file. Its current website, as at October 2026, uses that legal identity and Australian credit licence 240018.

Police Bank’s membership guidance includes current or former police members and eligible members’ families. It also includes law-enforcement employees or contractors, related services and members of partner organisations or government agencies. Membership applications are made online.

Police Bank’s history includes the name Police Credit Union, dating from 1964. That historical name doesn’t make another institution’s current policy applicable. Keep Police Credit Union lending policy and P&N Bank lending policy separate from this file.

Police Bank’s Goldrate target market determination, effective 31 October 2025, requires existing or prospective membership. Borrowers must be Australian permanent residents, aged at least 18, and meet the bank’s credit criteria. Membership access and credit eligibility are separate decisions.

The Police Value determination, also effective 31 October 2025, adds an occupational condition. It covers current or retired employees of an Australian police force or police organisation, including uniformed and civilian employees. The same membership, residency, age and credit conditions apply.

Record the borrower’s employer and current or retired status when selecting Police Value. For a joint application with a non-police borrower, ask Police Bank how that combination meets the product condition. Broader occupational concessions belong in the police home loan guide.

Check Income and Contributions

Separate base pay from overtime and allowances so Police Bank can assess each income component against its evidence. As at October 2026, Police Bank’s home loan page says it considers police pay and allowances, including overtime. That statement doesn’t establish a percentage of overtime that will count in serviceability, the assessment of repayment affordability.

Its first-home buyer guidance, as at October 2026, asks applicants to gather payslips, tax returns, bank statements and identity documents. Use those records to prepare the income breakdown below. The preparation checks explain the evidence, rather than prescribing a bank document count or averaging period.

Income component	Evidence to prepare	Question for the scenario
Base employment income	Payslips showing employer, pay period and year-to-date income	Does the current base pay match the application?
Overtime	Payslip overtime lines and the available pay history	What history and proportion will Police Bank accept for this borrower?
Allowances	Payslip allowance lines and an explanation of each payment	Is the allowance recurring income or reimbursement of an expense?
Rental income	Rental receipts or statements showing the income source	What rental amount will the bank use after its assessment?
Self-employed income	Business financial statements and tax records	Which periods and entities must support the income used?

Police Bank’s application checklist, effective 31 January 2023, names payslips and rent receipts as income evidence. It also names two years of financial statements for self-employed applicants and evidence of current savings. Use that dated checklist alongside the document request issued for the actual application.

Prepare a funds-to-complete reconciliation showing the purchase price, transaction costs and proposed loan, then identify the money available to cover the balance. For savings, show the account balance and explain large incoming transfers. For a gift, record the donor, amount and whether repayment is expected, with evidence of the transfer.

For equity, record the existing property’s value and secured debt, then distinguish equity on paper from funds released through an approved loan. Sale proceeds need the sale contract and a calculation after debt repayment and selling costs. Ask Police Bank which source documents it requires for each contribution before treating the amount as available at settlement.

Assess Security and Structure

Match the residential property and loan purpose to the selected Police Bank product before calculating the loan-to-value ratio (LVR). The LVR compares the loan amount with the bank’s valuation of the security.

Police Bank’s Goldrate and Police Value determinations, effective 31 October 2025, cover residential purchase, refinance and construction for owner-occupied or investment purposes. Both describe minimum purchase contributions of 5% for owner-occupied property and 10% for investment property. These product descriptions don’t establish that every security qualifies at the corresponding borrowing level.

Those determinations identify lenders mortgage insurance (LMI) above 80% LVR and describe capitalising the premium onto the base loan. Calculate the proposed balance including any financed premium. Ask the bank to confirm the permitted final LVR for the property’s type, location and loan purpose.

As at October 2026, Police Bank’s home loan conditions require LMI above 80% LVR, with an exception for eligible Australian Government 5% Deposit Scheme loans. Its First Home Loan is restricted to applicants who qualify for that scheme. Keep scheme eligibility separate from Police Value’s occupational condition.

For each security, give Police Bank the address, property type, land area and intended use. Add the contract or refinance details and any valuation already obtained. Flag construction, unusual title arrangements or a property with substantial non-residential use so the bank can assess the actual security.

The two determinations describe principal and interest or interest-only repayments, with fixed, variable and split structures. Their variable-rate features include an interest-only period of up to five years and an offset facility for principal and interest loans. Police Bank’s public home loan conditions limit construction interest-only periods to 12 months and exclude offset accounts on fixed or interest-only loans.

A hypothetical $600,000 valuation with a $510,000 loan gives an 85% LVR before any financed LMI premium. The valuation and premium can change the final ratio. Record the calculation as a proposal for assessment, without treating it as an approval or a security limit.

Keep the rate quote and any occupational concession comparison outside this policy conclusion. A pricing tier doesn’t prove the maximum LVR or that the bank accepts the security.

Record the Policy Answer

Record the Police Bank source and effective date beside the specific borrower facts it supports. As at October 2026, Police Bank’s target market determinations lists the Goldrate and Police Value determinations effective 31 October 2025. Retain the actual document version used, including its relevant page.

A useful file note separates a product condition from a scenario decision. For example, a current civilian employee of a police organisation meets Police Value’s stated occupational category. Whether that borrower’s overtime supports the required repayments still needs an income assessment.

Record the information needed to resolve that decision.

• Product and purpose, including owner-occupied or investment use.
• Applicant membership, residency and employment details.
• Base pay and each additional income component, with supporting records.
• Property address, type and proposed loan balance, including any financed premium.
• Contribution amounts and sources, plus the resulting funds-to-complete calculation.
• Exact question, applicable source passage and the bank’s answer or remaining condition.

For a scenario requiring a bank decision, use Police Bank’s current contact channel. As at October 2026, the published number is 131 728. Ask to speak with a Home Lending Specialist about the product, income or security condition.

Start with the scenario summary and the exact point needing assessment, such as the treatment of a recurring allowance or a joint applicant’s eligibility. Ask the specialist how to supply the supporting documents through the bank’s approved channel. Retain the response date and contact name, then update the file note with the condition and the evidence needed to satisfy it.