How Your Child Tax Benefit Can Help You Qualify for a Mortgage in Calgary
Are you a Calgary-based family dreaming of owning your own home but unsure if your finances make the cut? You're not alone. Many families overlook a key financial asset that could significantly impact their mortgage application: the Child Tax Benefit. In this guide, we'll explore how this benefit can play a crucial role in your journey toward homeownership, especially in the vibrant city of Calgary.
Understanding the Child Tax Benefit
The Canada Child Benefit (CCB) is a tax-free monthly payment made to eligible families to help with the cost of raising children under 18 years of age. What many don't realize is that this consistent influx of money can be a game-changer when applying for a mortgage.
Leveraging the Child Tax Benefit for Your Mortgage
1. Increased Income Declaration
Lenders look at your income to determine your borrowing capacity. Including the Child Tax Benefit as part of your annual income can increase the amount you're eligible to borrow. It's a stable, government-assured income, which lenders view favorably.
2. Debt-to-Income Ratio Improvement
Your debt-to-income ratio is a critical factor in mortgage approval. By adding the Child Tax Benefit to your income, you effectively lower this ratio, making you a more attractive candidate to lenders.
3. Enhanced Loan Application
In Calgary's competitive real estate market, every advantage counts. Presenting a loan application that showcases all possible income streams, including the Child Tax Benefit, sets you apart. It demonstrates financial responsibility and a steady income, appealing traits for lenders.
Tips for Using Your Child Tax Benefit Wisely
Save for a Down Payment: Consider setting aside a portion of your Child Tax Benefit into a savings account earmarked for your down payment. Over time, this can grow into a significant contribution towards your home.
Pay Down Debts: Lowering your debt levels not only improves your financial health but also enhances your attractiveness to lenders. Use the benefit to reduce outstanding debts, starting with those with the highest interest rates.
Maintain Good Financial Records: Lenders will want to see proof of your Child Tax Benefit income. Ensure you have all necessary documentation organized and ready for your mortgage application.
How We Can Help
As your dedicated Calgary mortgage broker, we're here to navigate the complexities of home financing with you. From understanding how to effectively leverage your Child Tax Benefit in your mortgage application to finding the best rates and terms suited to your unique situation, we're with you every step of the way.
Ready to Explore Your Mortgage Options in Calgary?
Your dream of homeownership might be closer than you think, thanks to the Child Tax Benefit. Contact us today to learn more about how we can help you turn your home ownership dreams into reality. Let's make the most of your financial assets together!