If part of your pay arrives as restricted stock units or employer shares, many lenders can count it, but only once their credit team agrees how. We settle that before you apply, then plan how the shares fit a later debt recycling strategy.
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For many tech, finance and corporate employees, base salary is only part of the package. The rest arrives as a bonus and as restricted stock units (RSUs) or other employee share scheme (ESS) awards that vest over time.
A lender that ignores that income can cut your borrowing power by hundreds of thousands of dollars. A lender that counts it, even after discounting, can change what you can buy.
Policies on share income vary widely and change often. Some lenders have a set method, some assess case by case through credit, and some will not count it at all. Two lenders can look at the same vesting history and reach very different serviceability numbers, so lender choice matters more here than for a salary-only application.
Where share income is accepted, these are the common approaches. None is universal.
Several discounts can stack. That is why the method needs to be agreed with the lender's credit team before you lodge, not argued after a decline.
In our employer share income case study, a principal software engineer had 655 units vest in 2025, worth US$58,340. The lender discounted that as foreign income, converted it to Australian dollars, then discounted it again as investment income, accepting $44,053.
| Item | Figure |
|---|---|
| Vested employer shares | US$58,340 |
| Accepted after lender discounting | $44,053 |
| Total income accepted for servicing | $286,633 |
| Uplift over base salary and allowance | 40.6% |
| Pre-approval | $1,460,000 at 69.52% LVR |
These figures are specific to that client and that lender at the time of that application. Another lender could have counted more, less or nothing.
Share income rarely arrives alone. The same application usually has to deal with:
In the published case study, all four applied, and each was addressed in the application before it was lodged.
Our loan application document checklist covers the standard items for any application.
Once you own the home, vested shares become a possible source for debt recycling. The general sequence:
The proceeds are cash you can apply to the home loan.
The proceeds reduce your non-deductible owner-occupied split.
The same amount is drawn from a new, separate investment split and used only to buy income-producing investments.
The ATO links interest deductibility to what the borrowed money is used for, not the property securing it. Keeping the investment split separate from the home loan split is what keeps that use clear. Our guide to debt recycling with an existing share portfolio walks through the same idea for shares you already hold.
Your financial adviser recommends what to invest in, including whether to keep holding your employer's shares at all. Many people already carry a large exposure to their employer through salary and unvested grants.
A principal software engineer had US$58,340 of vested employer shares counted toward a $1,460,000 pre-approval on a $2.1m home, with $44,053 accepted after the lender's discounting. Total income accepted for servicing was $286,633, a 40.6% uplift over base salary and allowance.
Read the Case Study →Selling vested shares is a CGT event. For shares under a tax-deferred scheme, the ATO says the cost base generally resets to market value at the deferred taxing point, so the capital gain or loss is measured from there. The discount may already have been taxed as income in an earlier year.
Buying the same shares back with borrowed money raises a separate question. The ATO warns that wash sales, selling and reacquiring assets such as shares to create a capital loss, can see the loss rejected and penalties applied.
Whether you can sell and repurchase the same shares through a debt recycling split, and how CGT applies to your sale, is a question for your registered tax agent before you place any trade.
Our debt recycling and capital gains tax guide covers the general CGT points.
Tell us where you are and what you want to do next. We will tell you what the lending side looks like, including whether debt recycling fits later.
Request a Call With Alex →Many of our share income clients are high-income earners, where the deduction on investment borrowing is worth the most.
Many do, but policies vary widely. Lenders that accept it usually count only vested shares, often apply a percentage discount for share price risk, and may want one to two years of vesting history. Shares paid in a foreign currency are often discounted again. We confirm the method with the lender before you apply.
Generally not. Many lenders treat unvested grants as a possible future benefit rather than income you have received. A vesting schedule or grant letter can still help show that share income is ongoing, which supports the lender counting shares that have already vested.
Some lenders count them and some do not. Where they are accepted, the value is usually converted to Australian dollars and discounted for currency risk, sometimes on top of the usual discount for share price movement. Our published case study shows US-dollar shares counted after two rounds of discounting.
That is the general shape of debt recycling: sale proceeds reduce the non-deductible home loan, then a separate investment split funds income-producing investments. CGT may apply to the sale, and the ATO warns about wash sales. Your registered tax agent confirms the tax position and your adviser recommends the investments.
Usually, yes. The ATO treats the discount on employee share scheme interests as assessable income, either in the year you acquire them or at a later deferred taxing point. Lenders often use those tax returns and statements as evidence, so keep them together with your plan statements.
Why the deduction is worth most at the top marginal rates.
Read more → SERVICEHow the share route works and how the splits are built.
Read more → GUIDEWhere CGT fits when you sell to recycle.
Read more →
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