Using your Child Tax Benefit can increase your purchasing power, but how do we go about this?
We explore below. If you need to apply for CCB for your child click the link below for further details on the governments website.
https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview/canada-child-benefit-apply.html
The Canada child benefit (CCB) is administered by the Canada Revenue Agency (CRA). It is a tax-free monthly payment made to eligible families to help with the cost of raising children under 18 years of age. Additionally, CCB may also include the child disability benefit and any related provincial and territorial programs. It can also help with your mortgage transaction.
So, how much CCB can you access for your mortgage:
| Income on File | $56,000.00 |
| CCB Income for 3 Kids | $21,600.00 |
| Max 30% Rule formula | =56000*30% |
| CCB Income Used on File | $16,800.00 |
- Certain lenders and credit unions will accept 100% no matter the income on file. This allowance applies if your down payment is 20%.
- Other Lenders will use 50% of your gross CCB but have a max use at 25% of your total income on file. See what income it takes to approve your mortgage.
- 100% of CCB and up to 30% of total income on file as long as the kids are 12 or younger
To verify the CCB on your application, the Broker/Agent typically needs:
- CCB Notice from the CRA, or your online CRA Account
- 3 months of bank statements showing deposits of the CCB going in
- Birth certificates for all eligible children that CCB is being used on the mortgage application
My name is Charly Short and I am a Mortgage Agent. CCB allowances on mortgage income are always changing, so it is hard to determine your affordability. Talk to a Licensed Mortgage Professional today for your mortgage pre-approval. If you are confused give me a shout below.
