An executive’s compensation may combine base salary, an annual bonus and restricted stock units (RSUs). Adding all three into one headline income figure can obscure two different questions: what a Japanese mortgage lender will recognize, and what the household can reliably use to make monthly payments. Work through them separately before setting a purchase budget.
Document income before asking how much you can borrow
Japanese lenders do not use one universal formula for a borrower’s income. For example, SMBC explains how to enter income using a Japanese withholding slip or recent salary and bonus statements. PayPay Bank’s guidance for applicants who changed jobs instead discusses projected income at the current employer and supporting employment and pay documents. Those examples illustrate differing documentation requirements; they do not establish how any lender will treat a particular applicant’s RSUs.
Prepare the previous year’s gensen choshu hyo (employment income withholding slip), recent payslips and bonus statements, and the employment agreement. If you recently changed employers or compensation structure, reconcile the figures year by year. Ask each prospective lender which amount and which evidence it uses for preliminary screening and final underwriting.
Separate an RSU grant from vested shares and cash
An award notice describes units that may vest in the future. Vested shares, shares sold and cash available for a down payment are different things. Prepare the award agreement, vesting history, brokerage statements and sale records, and identify where relevant amounts appear in payroll and tax documents. Japan’s National Tax Agency has a reporting framework for certain economic benefits from foreign parent companies; that tax reporting framework does not dictate a mortgage lender’s credit policy.
Ask the lender explicitly whether it considers vested RSUs, whether it averages past vesting or sales, how it values foreign currency amounts, and which records it needs. Do not assume that unvested grants count as income or that shares can be sold at today’s market price when the down payment is due. Any sale, tax and currency implications require an individual assessment.
Set an affordable budget independently of the approved loan
Start with dependable monthly take-home pay from base salary. Subtract the mortgage payment, condominium management fees and repair reserve contributions, property taxes and normal living costs. Then test a lower bonus, a delayed vesting date, a fall in the employer’s share price, a weaker exchange rate and a higher mortgage rate. Combine shocks after testing them individually. A bank’s lending decision is not a household cash-flow plan; the bank’s own guidance notes that borrowing limits reflect factors beyond annual income.
A useful decision boundary is the home price that remains affordable without relying on future stock vesting for recurring payments. Keep any RSU proceeds available for an optional down payment or buffer in the scenarios rather than treating them as guaranteed monthly income. The English tools page provides access to the mortgage planner; confirm its rate, repayment and tax assumptions for your own loan.
Questions to bring to a lender
- How do my prior-year certified earnings compare with current base salary, bonus and vested equity compensation?
- Which components does this lender recognize, and which Japanese or overseas documents will it accept?
- If the bonus falls or RSUs do not vest as expected, can I still cover repayments and ownership costs?
When buying a Tokyo home, compare the lender’s available credit with a budget that works through ownership and a possible future sale. Our residential brokerage service can help evaluate the property and holding costs; a lender alone determines its underwriting decision.
Sources and scope
- SMBC: entering income in a mortgage application (Japanese)
- PayPay Bank: income and documents after changing jobs (Japanese)
- National Tax Agency: reporting economic benefits from foreign parent companies (Japanese)
- Docomo SMTB Net Bank: annual income and borrowing amount (Japanese)
Source guidance checked 25 September 2026. Underwriting, tax treatment and mortgage product terms depend on the applicant and lender. Read the Japanese edition.