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Turn Vesting Shares, RSUs and Options Into Real Home Loan Borrowing Power

How Australian professionals can use RSUs, vesting shares and stock options to support home loan approvals. Clear rules, lender expectations, worked numbers and one‑week action steps.

29 Aug 2026Updated 29 Aug 20268 min read

Key Takeaway

Australian lenders can use RSU and vesting share income for home loan serviceability if it appears stable, is well documented over 1–2 years, and can be reliably converted to Australian dollars; stock options are usually ignored until exercised. Most banks shade this income by 20–40% and apply an APRA-recommended 3% serviceability buffer, keeping total repayments around 30–35% of after-tax income. Borrowers should formalise a selling pattern, centralise records, and choose lenders comfortable with equity compensation to maximise safe borrowing power.

Turn Vesting Shares, RSUs and Options Into Real Home Loan Borrowing Power

If your pay is loaded with RSUs, vesting shares or options, banks can use that income for a home loan – but only when it looks stable, is well documented and can be converted to cash in AUD. In practice that means 1–2 years of vesting history, a clear equity plan, and evidence that you actually sell or cash out some stock.

Most lenders will happily use a high, boring salary and tread carefully with everything else. Your job is to turn your equity compensation into the kind of income they’re comfortable with.

Vesting schedule and home loan calculator on laptop screen. Turning your vesting schedule into a borrowing power story banks understand.

1. How lenders see RSUs, vesting shares and options

RSUs and vesting shares

Restricted Stock Units (RSUs) and other time‑based vesting shares are the easiest type of equity compensation for lenders to use. They look at them as:

Variable income, like a bonus.
Potential capital, once vested shares are sold.

To count RSU income, most banks want:

At least 12–24 months of vesting history.
A documented vesting schedule (offer letter / plan rules).
Evidence you regularly sell some shares and receive AUD proceeds.

Options

Unexercised options are usually treated as zero for serviceability. Lenders may only care about them if:

You’ve exercised and sold, and
The gains appear on your tax return or bank statements as regular income.

For borrowing now, think of options mainly as future upside or extra deposit, not income.

2. When will a bank actually count your equity income?

The core rule: if it looks like a pattern, they can usually use it. If it’s a one‑off windfall, they usually won’t.

Common approval rules for RSU income

Typical lender settings (these vary by bank and over time):

History required: 1–2 full financial years of vesting and/or selling.
Averaging period: last 6–24 months, depending on volatility.
Shading: they may only take 60–80% of the average to stay conservative.
Currency: foreign stock proceeds may need to be translated to AUD using ATO rules.

This mirrors how banks treat other complex income streams, like company and trust distributions or side investments. If your broader package includes those, see /insights/using-company-trust-investment-income-serviceability-story.

Comparison: how different banks may treat RSUs

Feature	Conservative bank	Flexible bank
RSU history required	2+ years	12–18 months
Portion of RSU income used	50–60%	70–80%
Options income	Ignored unless on tax returns	Case‑by‑case if clearly recurring
Unvested future tranches	Ignored for serviceability	Ignored, may help overall risk view
Max LVR using equity-heavy income	Often capped at 80%	Up to 90–95% with strong profile

These are indicative only – policy changes regularly and lender selection matters.

3. Turning RSUs into usable borrowing power

Step 1: Make the income look stable Lenders love patterns. Over the next 6–12 months: - Set a selling rhythm – for example, sell 40–60% of each vest on a set date. - Route proceeds into one account (ideally your main offset) so the trail is clean. - Keep a simple log: vest date, number of shares, price, AUD amount. This is the same logic we use for people with lumpy tech or freelance income – turning chaos into a story the bank can follow, as covered in /insights/variable-income-borrowing-power-green-square-tech-creative-hospitality.…

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Frequently asked questions

Do Australian banks count RSUs as income for a home loan?▾

Yes, many Australian lenders will count RSU income if there is at least 12–24 months of regular vesting and sale history and it is well documented. They usually average the income over time and then shade it by around 20–40% to allow for volatility. One-off or speculative grants without history are generally ignored for borrowing power.

Can I use unexercised stock options to qualify for a bigger mortgage?▾

Unexercised options are usually not counted as income for home loan serviceability because they are contingent and depend on future share prices. Lenders may only recognise income from options once they have been exercised and sold, with gains consistently showing on tax returns or bank statements over at least one to two years.

How far back do lenders look at my RSU and vesting history?▾

Most banks want to see at least the last 12 months of RSU and vesting history and often prefer a full 24 months. They look for a stable pattern of grants, vesting and sale proceeds rather than isolated spikes. A documented vesting schedule that continues into the future is also important for comfort that the income will continue.

Will RSU income let me borrow as much as my salary does?▾

No, RSU income is usually treated more conservatively than base salary. Salary is often taken at 100%, while RSU income is averaged over time and then shaded, so only 60–80% might be used. Even so, for high-income professionals, RSUs can still add significant borrowing capacity when properly presented to the right lender.

Is it safer to sell my RSUs to reduce my mortgage or keep them invested?▾

From a risk and lending perspective, using some RSUs to reduce non-deductible home loan debt and to build a 6–12 month cash buffer is often sensible. Keeping everything invested in your employer’s stock can leave you overexposed to one company. The right balance depends on your risk tolerance, diversification and time horizon.

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