This is a common question that many borrowers wonder about when purchasing a home, especially their first home. Many lenders, including most banks, will not accept the Child Tax Benefit as qualifying income. At times when lenders agree to accept this form of income, it will greatly rely on the age of your child.

If the child is under the age of 13 then this could be counted as income, they assume that this income stream will likely continue for 5+ years. You will need to provide proof of the children’s age with a birth certificate and also provide the entitlement notice for the child tax credit that you receive monthly.

Most lenders who will take this form of income into consideration will likely have a stipulation that a maximum of 30% of the overall income is allowed to come from the CTB. Depending on the number of children you have in your home this could greatly affect your ability to secure the mortgage you’re hoping for.

Getting in touch with your mortgage expert is a great place to start so you can go over all the details of your current financial situation and plan for the best outcome possible. We love hearing from you, so pick up the phone and call us today if you have any further questions regarding your Child Tax Benefit.