An increasing number of Australian professionals are earning part of their income through vesting shares under Employee Share Schemes (ESS). While this form of equity-based remuneration can enhance a borrower’s financial profile, it presents complexities when applying for a home loan. Mortgage brokers play a critical role in helping clients with vesting share income access suitable lending options.
Lender Consideration of Vesting Share Income
Vesting shares are equity entitlements that become accessible over time. When sold, the proceeds are often reflected in a borrower's PAYG summary or tax return. While some lenders discount or exclude this income, Mortgage Street recognises its value and accepts vesting shares across a wide range of loan products.
Mortgage Street’s Lending Approach
Mortgage Street supports the inclusion of vesting share income in the following product suites:
Mortgage Street’s key considerations include:
An ELOC offers several advantages over traditional business loans:
- Income History – Preferably 1–2 years of consistent vesting share income, supported by tax returns or PAYG summaries.
- Evidence of Realisation – Shares must be sold and taxed to be included.
- Vesting Consistency – Ongoing and scheduled vesting is preferred over irregular or one-off allocations.
- Employer and Equity Type –Listed and private company schemes are both considered on a case-by-case basis.
Required Documentation for Brokers
To support these applications, brokers should prepare:
- ATO notices of assessment and PAYG summaries
- Employer letter confirming vesting schedule
- Share sale and tax documentation
- Employment contracts outlining ESS participation
Vesting shares can enhance borrowing capacity when supported by a lender that understands modern remuneration structures.
Borrowers receiving vesting share income should connect with Mortgage Street’s accredited mortgage brokers to access tailored home loan options backed by flexible credit policies and broad product acceptance.