RSU Income Explained:
Maximising Your Home Loan Potential
If you’re a tech professional in Australia, your compensation package likely includes more than just a base salary. Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) often make up a substantial portion of total earnings—yet many banks and lenders don’t fully recognise this income when assessing borrowing power for a home loan.
This page outlines how RSU income is treated by lenders, what documentation is required, and how to ensure your full income potential is considered when applying for a mortgage.
Understanding RSU and PSU Income
RSUs and PSUs are forms of equity-based compensation, commonly issued by tech companies. These units typically vest over a set period, becoming taxable income once vested. In Australia, this is reported to the ATO and appears in your Employee Share Scheme (ESS) Annual Tax Statement or tax returns.
Despite this, many lenders don’t include RSU income in their home loan assessments—particularly if you’re applying directly through standard channels or don’t meet very specific criteria.
Why Lenders May Overlook RSU Income
Lack of Policy: Most lenders do not have clear, public-facing policies around RSU income. However, some banks may accept RSU income through a broker channel—especially when working with brokers who have strong relationships or premium accreditation status.
Income Volatility: Because RSU income is tied to stock price performance, lenders may discount or ignore it due to perceived inconsistency.
Documentation
Requirements: Properly verifying RSU income requires tax returns or ESS statements that not all borrowers know how to access.
Can I Use RSU Income for a Home Loan?
Yes—if you meet the right conditions and go through a lender or broker familiar with RSU structures. The following criteria are commonly expected:
Employment Tenure: Typically at least 2–3 years with your current employer
Publicly Listed Company: Your employer must be listed on the ASX, NASDAQ, NYSE, or other major exchange
Consistent Vesting: You have two consecutive years of vested RSU income
Proper Documentation: You can provide ESS Annual Tax Statements or tax returns showing RSU income under the Employee Share Scheme section
Where to Find Your RSU Income Documentation?
ESS Annual Tax Statements: Download from your company’s share platform (e.g., Shareworks or Fidelity)
Tax Returns: Look under the “Discount from Deferral Schemes” line in your most recent ATO-issued returns
These are the figures lenders will use when assessing your RSU income.
How Lenders View RSU Income Differently?
Not all lenders assess RSU income the same way. For example:
Some use the average income across two financial years, while others take the lower figure
A 20–40% haircut may be applied to account for market volatility
Most do not consider unvested shares or future grants
Because of these inconsistencies, working with someone who understands how RSU income affects borrowing power—and who knows which lenders accept RSU income in Australia—can make a significant difference.
Choosing the Right Broker or Lender
- “Mortgage broker for tech employees Australia”
- “How RSUs affect borrowing power”
- “Banks that accept RSU income”
- “Mortgage with stock income or RSUs”.
Why Work With Us?
- We specialise in helping tech professionals secure finance that reflects how they’re actually paid.
- We’ve worked with clients from Atlassian, Google, Salesforce, Afterpay, Xero, Hubspot, Zoom, Microsoft and other leading tech companies.
- We understand which lenders accept RSU income, how to present it, and how to avoid delays or misinterpretation.
- We help you avoid the common traps of going directly to a lender who may not credit your full income.
- Our approach is strategic, transparent, and tailored to the needs of high-earning professionals in tech.
Still Have Questions?
If you’re unsure whether your RSU income qualifies, or you’re looking for a second opinion on your borrowing power, feel free to book a quick obligation free call.
