For many families, Child Tax Benefits are a very important part of monthly income that often allows one parent to stay home or work less hours. It is also a great benefit for a single parent as well. But in both cases, a lower employment income can create an issue when they are looking to purchase a home. In the eyes of their bank they have limited income, as they will not likely acknowledge the Child Tax Benefit (CTB).
As a mortgage broker we have lenders that understand how stable the benefit is and also recognize that many families may choose to work a little less and spend more time with their children because the CTB allows them to do so. This is a real advantage for us and for client's that are working with us. This advantage may be even greater with the Federal Budget promising to put more money into the CTB program. Just for some perspective, if a family has a $400/month CTB they would be able to qualify for an estimated $30,000 greater purchase price. With the new CTB soon to be implemented, this number could rise substantially for some families.
I will talk with you soon,