Ask Angela- Use of UCCB and CCTB as Income Qualifying For Mortgage

 

 

Ask Angela

Question: I am told that we can use the Universal Child Tax Benefit and the Canada Child Tax Benefit as income to help qualify for a mortgage. Is this true?

Answer: Yes, this is true, and it does help families purchase their homes as the amount can be substantial, but there are a few rules to follow.

For the following calculations, I will use the 5 year fixed term, as this is one of the most popular terms used in today's mortgages.
Any questions or comments? akroemer@mortgagegroup.com

UCCB- Universal Child Tax Benefit is for children under the age of 6 years and is paid in installments of $100 per month per child.
To be able to use this payment, there must be 5 years of payments left, since many mortgages are a 5 year term. If the child is under 1 years of age then we can use this payment.

CCTB - Canada Child Tax Benefit
- is a tax-free monthly payment made to eligible families to help them with the cost of raising children under age 18.
This follows the same rules as the UCCB, needing 5 years of payments remaining. So any child under the age of 13 in your family we can use their part of the payment.