Police & Nurses Credit Union will avoid loans to residential property borrowers who have a deposit of less than 10 per cent  from now on, as the Perth-based lender takes a cautious view of Perth's property market.Fred Huis, chief executive of Police & Nurses, said the credit union had made "a strategic decision to focus on the quality of the retail lending book and reduce exposure in the property finance market."Property prices in Perth have declined 2.5 per cent over the first eight months of the year, according to research firm RP Data.Huis said the credit union expected to maintain its lending mix towards home loans - which represent 89 per cent of loans - but it would limit loans to borrowers where the loan-to- valuation ratio was not more than 90 per cent.He said there was good demand for personal loans. One measure of demand is the rise in the number of members, which increased six per cent over the last year.Police & Nurses reported a 16 per cent decline in profit over the year to June 2012. Its profit fell to A$11.1 million, from $12.8 million.Lower interest margins trimmed the profit, which is a common theme across the sector; lower net interest income also weighed on the result.Police & Nurses said it would defer until the new year its plans to adopt new branding, as P&N Bank.It said it understood from APRA that it could expect approval by the end of the year to use the term "bank".