Written and reviewed by John Pierre Saliba, Director and Senior Finance Broker, MFAA Accredited, ACL 511092. Last reviewed 8 October 2026.
Do Senior Executives Get LMI Waived in Australia in 2026?
Yes. A number of lenders waive lenders mortgage insurance at up to 90% LVR for high income borrowers, with minimum income requirements often around $150,000, subject to lender assessment. The waiver is not reserved for doctors: several lenders run high income earner policies that senior executives, general managers and company directors on PAYG packages can qualify for.
The harder question for most executives is not the waiver, it is servicing. Executive pay is rarely a single salary number. Base, short-term incentive, long-term incentive, allowances and equity all land differently with different credit teams, and the gap between the most and least generous treatment of the same package can be hundreds of thousands of dollars in borrowing power.
| Key fact | Where it typically lands |
|---|---|
| Max LVR without LMI | Up to 90% with a number of lenders, subject to assessment |
| Who qualifies | PAYG executives and directors with strong, verifiable income |
| Common income threshold | Often around $150,000; some lenders set higher bars for larger loans |
| Bonus income | Typically counted at 50-80% of a two-year average |
| Documents | Payslips, employment contract, bonus history, tax returns if needed |
| Typical timeline | 2-4 weeks to formal approval, lender dependent |
How Do Lenders Assess Bonus Income for a Home Loan in 2026?
Most lenders count a portion of your cash bonus, typically 50-80% of the average of your last two years, and some want to see the bonus paid in each of those years before counting anything. A smaller group will consider one year of history or a contractually guaranteed incentive at a higher percentage, subject to assessment.
Why the haircut? Credit teams treat discretionary income as less reliable than base salary. The practical consequence: two lenders looking at the same $150,000 average bonus might count $75,000 and $120,000 respectively. If your bonus is a large share of your package, matching the lender's bonus policy to your pay mix is the single biggest lever in your application.
Evidence matters too. Bonus letters, two years of payment summaries and payslips showing the incentive line all help a credit assessor take the higher number rather than the conservative one.
Can RSUs and Equity Compensation Count Towards a Mortgage in 2026?
Sometimes. Some lenders will count income from vested equity, such as restricted stock units in a listed company, where there is a consistent vesting history, typically shaded the same way as a cash bonus. Many lenders will not count equity income at all, and almost none will rely on unvested grants.
Sign-on bonuses sit in a similar bucket: once paid, the cash can absolutely be used as deposit funds, but as recurring income it rarely counts because it does not recur. If equity is a big part of your package, tell your broker up front; it changes which lenders are even worth approaching.
The costliest mistake I see executives make is applying with their everyday bank first, getting a conservative bonus assessment, then shopping around with a credit enquiry already on file. I do it in the opposite order: I map your base, bonus history and equity income against each lender's policy, pick the one that counts the most of it, and lodge once. One enquiry, best-case assessment.
How Much Can a Senior Executive Borrow in Sydney in 2026?
It depends almost entirely on how much of your package the lender counts. Here is a realistic Sydney scenario showing why.
- Purchase price: $2,400,000 (Sydney house)
- Deposit (20%): $480,000, so a loan of $1,920,000
- Base salary: $350,000
- Cash bonus, two-year average: $150,000
- Lender counting 80% of bonus: assessable income $350,000 + $120,000 = $470,000
- Lender counting 50% of bonus: assessable income $350,000 + $75,000 = $425,000
- Difference: $45,000 a year of assessable income, which can shift maximum borrowing by several hundred thousand dollars at current servicing rates
Figures are illustrative only, not a quote or an indication of approval. Run your own numbers with our borrowing power calculator, then let us pressure-test them against real lender policy.
What Documents Do Executives Need for a Home Loan in 2026?
For a PAYG executive the core pack is short: two recent payslips, your employment contract, and evidence of bonus history (payment summaries, bonus letters or prior-year payslips). Lenders may ask for tax returns where income is layered across incentives and allowances.
If you have recently moved roles, the employment contract does more work: many lenders will lend during probation for executives continuing in the same industry, though bonus income usually cannot be counted until a payment history exists, subject to assessment.
Why Use a Broker for an Executive Home Loan in 2026?
Because policy variance, not rate, is where executive applications are won or lost. We compare 50+ lenders on bonus shading, equity income treatment, high income LMI waivers and large-loan pricing tiers, and we are bound by Best Interests Duty to recommend what suits you, not what pays us. The service costs you nothing; we are paid by the lender after settlement.
Related reading: we run dedicated pages for lawyers and legal professionals, accountants and tech professionals, plus the full professional LMI waiver guide. Estimate your premium saving with the LMI calculator.
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