This is an email question from Julie in Menora. The question asks; I work full time and I have two children from a previous marriage. I receive child maintenance from my children’s father; can I use this income to help apply for a mortgage?
A good question that I receive a fair bit. The good news is some banks and lenders will consider using child maintenance when applying for a mortgage. Not all banks or lenders do, and some banks or lender may only consider 30% to 50% of the child maintenance income received, but there are banks and lenders that will use 100% of the payment received when you are applying for a home loan.
Most of the banks or lenders that will consider child maintenance as income will require certain criteria and paperwork to prove that is regular and ongoing income.
The type of criteria and paperwork that a bank or lender may require to prove that the child maintenance is acceptable to use as income to apply for a home loan–
•A court order or a CSA (Child Support Agency) agreement showing the date the agreement was reached, and how much the payments should be.
•3 to 6 months bank statements, showing that the payments have been made regularly and on time.
•Some banks or lenders may use the child maintenance income if the children are 12 years of age or younger.
It can be a little confusing, so if you have any questions about what the banks will consider as income, please contact me anytime. I am a qualified mortgage broker, with many years of home loan experience. If you have any comments, please leave below, we love hearing your feedback
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