Two key ways families can show more income on their mortgage application.

If you are a young family in BC looking to qualify for your first home or move into a larger one, you are well aware of the booming real estate market.  Bidding wars and competition for inventory make the process that much harder.  Here are two often overlooked ways that your family may be able to show more income and qualify for a larger mortgage if needed.  

If you receive  Child Tax Benefit, some lenders will allow: 

• 100% can be used provided the income will continue for at least 3 years after closing.

Documentation Requirements

• Confirmation of the age of the children by way of birth certificate OR other documentation
• Receipt of income by way of one of the following:
• the CCB statement OR
• Bank statements showing direct deposit

On Maternity Leave:

You are eligible to use the following amount of your income based on one of the following:

60% of the borrower’s salaried or guaranteed hourly income to be used to qualify if the expected return to work date is within 12 months of the application date

35% of the borrower’s salaried or guaranteed hourly income can be used to qualify where the return to work date is >12 months from the application to a maximum of 18 months, from the application date

100% of “salaried” or “guaranteed hourly” income can be used provided one of the 2 scenarios exist:

• Borrower is returning to work within 2 months of the mortgage closing date OR:
• The borrower is returning to work within 12 months after the mortgage closing date AND
• The borrower has salaried or guaranteed hourly income only, AND
• The subject property or employment is not located in a region currently identified as having market risk

Documentation Requirements - Letter of employment confirming:

• Position the borrower is returning to
• Expected return date
• Income upon return