Article
Safely Turning Bonuses, Commission And RSUs Into An Alexandria Home
Written and reviewed by James Chee, CPA · Last reviewed
How to turn bonuses, commission and RSUs into a Green Square or Alexandria home without over-borrowing. A practical, decision‑grade guide you can act on this week.
Key Takeaway
This article explains how Australian borrowers can safely use bonuses, commissions and RSUs to buy in Alexandria or Green Square by basing borrowing limits on stable base salary and treating variable pay as capital, not core repayment income. It outlines how banks typically shade variable income by 20–50%, APRA’s 3% serviceability buffer, and Roy Morgan’s finding that 32.5% of mortgage holders are ‘At Risk’ of stress in 2026. The key actionable step is to set a stricter internal limit and build 6–12 months of cash buffers before and after purchase.
Watch the short answer
Can you buy a property before your tax return is done?
While you weigh up using bonuses or RSUs for an Alexandria home, this video explains how buying works before your latest tax return is lodged.
Read the transcript
Think you can't buy a property this year because your accountant hasn't finalised your 2026 tax returns? Think again. If you are a freelancer, a contractor, or a growing business, that means months of lost opportunity. We use alternative documentation pathways that completely bypass the ATO delay. We assess your true borrowing capacity using the last 6 months of your business bank deposits, getting you approved while your competitors are still waiting on paperwork. Stop waiting on tax portals to dictate your property goals. Message me 'ALTDOC', to fast-track your FY27 approval.
General information only, not personal advice. Your situation is assessed before any recommendation.
This topic is covered in full on Tailored Loans Sydney
How to turn bonuses, commission and RSUs into a Green Square or Alexandria home without over-borrowing. A practical, decision‑grade guide you can act on this week.
Read the full guide on tailoredloans.sydneyYou can turn bonuses, commissions and RSUs into a Green Square or Alexandria apartment, but the safe way is to borrow only what your base salary can support and treat variable income as capital for deposit, buffers and debt reduction – not something you need just to make the monthly repayment.
That means: 1) set your own lower borrowing limit, 2) understand how banks shade and average variable income, and 3) build serious buffers before you sign a contract.
1. How banks really treat bonuses, commissions and RSUs
Lenders like inner‑south professionals with strong packages, but they don’t trust lumpy income. They will usually:
- Average bonuses/commission over 2–3 years
- Shade the result (often using only 60–80%)
- Ignore RSUs that aren’t vested or are too new/volatile
APRA also expects banks to add around 3% to current rates when testing your repayments, so the income they allow gets hit by a stress‑test on the other side.
Typical lender treatment (illustrative only)
| Income type | What the bank looks at | Typical treatment (illustrative) | Key risk for you |
|---|---|---|---|
| Base salary | Current contract + recent payslips | 100% counted | Job change, redundancy |
| Annual bonus | 2–3 years group certs / payslips | 60–80% of 2–3 year average | Cyclical profit, employer discretion |
| Sales commission | 6–24 months statements | 60–80% of average | Market downturn, territory changes |
| RSU vesting income | 2–3 years vest history + contract | 50–80% of vested average only | Share price falls, scheme changes |
| Self‑employed profit | 2 years tax returns + financials | Adjusted, then often shaded 20% | Income volatility, add‑backs removed |
Even if a bank’s calculator says “yes” based on this shaded income, that’s not the same as safe.
For a worked example translating RSUs into lender‑friendly language, have a look at our case study: How One Tech Professional Turned RSUs Into An Alexandria Warehouse Home.
2. Your internal rules: safer than any bank policy
Roy Morgan’s July 2026 research shows 32.5% of owner‑occupier borrowers are now “At Risk” of mortgage stress, with rates at 4.35% and rising. A lot of that is households borrowing to the bank maximum.
For high‑income, variable‑pay borrowers around Green Square and Alexandria, a safer internal framework is:
- Base salary only sets the purchase price.
- Total home + investment repayments at stress rates ≤ 30–35% of after‑tax income.
- 6–12 months of stressed living costs + all repayments in cash/offset.
These guardrails build on prior guidance for complex income earners near Green Square and Alexandria.
Worked example – Green Square professional couple
- Buyer 1: Base salary $190,000 + target bonus $60,000
- Buyer 2: Base salary $130,000 + commission (last year) $40,000
- After‑tax household income (base only): ~$17,000/month
- Their internal rule: keep repayments at stressed rate ≤ 35% of net = $5,950/month
At a stressed rate of 8% p.a. P&I over 30 years (roughly 3% above current illustrative rates):
- A loan of $900,000 costs ~$6,610/month – too high for their rule.
- A loan of $800,000 costs ~$5,875/month – just under 35% of net.
The bank might happily approve $1.1–1.2m based on shaded bonuses and commission. Their safer move is to cap themselves around $800k–850k, then use bonuses, commission and RSUs for:
- Building a 10–20% deposit + costs
- Funding a 6–12 month buffer in offset
- Extra repayments after settlement
For many readers, that’s the difference between coping and joining the 32.5% under mortgage stress if rates rise again.
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