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Did you know that you can use your CCB to help with mortgage qualification?

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Introduction

If you’re trying to purchase a home, it’s always important to review your finances. You need to take into account both your income and your debt and make sure that it meets the requirements of lenders in order to qualify for a mortgage. The Canada Child Benefit (CCB) can be used as part of your total income when applying for a mortgage loan – it can be used as long as it doesn’t surpass 30% of the total household income.

The Canada Child Benefit (CCB) can be used as income for those who are looking to buy a home.

If you’re thinking about buying a home, the Canada Child Benefit (CCB) can be used as income for those who are looking to buy a home. The CCB is a tax-free benefit that helps families with children. It’s paid out monthly and can be used as income for those who are looking to buy a home.

The amount of the CCB depends on your family’s situation and how many children you have under 18 years old. The maximum monthly payment for each child is $6,400 per year until they turn 18 years old.

A lender will require proof in order to verify your benefits.

You will need to provide proof of your Canada Child Benefit. You can do this by providing the following:

  • A copy of your CCB letter from the government showing that you have been approved for benefits. To obtain the digital PDF of it, log into your canada.ca account and go into your mail where you will find the most recent notice.
  • Proof that your child is under 18 years old (i.e., birth certificate)

In order to be eligible for the CCB, you must either be the primary caregiver of a child under 18 or the spouse or common-law partner of this person.

In order to be eligible for the CCB, you must either be the primary caregiver of a child under 18 or the spouse or common-law partner of this person.

You can also qualify if you are single and have custody of your own child under 18 years old. However, this is only possible if they live with you full-time (more than 50% time). If you have your child part time, your CCB will be given to you in an equivalent of the share of custody that you have.

The CCB is tax-free, which means that it can count towards your total income when you’re trying to qualify for a mortgage.

The CCB has been around since 2016 when it was rebranded from the old CTC (Child Tax Credit) and helps parents with the cost of raising their children. You get $6,400 per kid under six years old and up to $5,400 per kid between six and 18 years old.

Can all of the CCB credit go toward qualification?

When using you CCB as income to help you qualify for a mortgage, the lenders and insurers do have guidelines as to how it is used.

  • Your child must be under 12 years old when you apply for the mortgage – this is to ensure that the CCB is in place for the term of the mortgage. There are lenders that have exceptions on this, such as allowing the child to be 14 if the term of the mortgage is only 3 years.
  • The CCB must not exceed 15-30% of the total income on the file. The percentage varies from lender to lender so it’s best to check in with your mortgage broker about it.

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