Support payments like child support and spousal support can help when qualifying for a mortgage, as they may be considered as additional income. However, there are specific criteria and documentation requirements:

1. Consistency and Stability of Payments

Lenders in BC look for a consistent history of support payments, typically requiring proof of steady payments for at least 3-6 months or longer. Reliable, predictable payments are key, as lenders need assurance that this income is stable.

Support payments are usually included only if they’re expected to continue for a substantial period, often three years or more. For example, if your child is close to the age where payments will end, the lender may discount or ignore those payments as qualifying income.

2. Documentation Requirements

You’ll need to provide comprehensive documentation to prove both the amount and reliability of support income. This typically includes:

• A divorce or separation agreement that clearly outlines the terms of support payments.

• Bank statements showing regular deposits.

• In some cases, court orders may also be requested.

Lenders may require additional documentation if payments have been inconsistent or if there is any doubt about future payments.

3. Impact on Debt-to-Income Ratio

Support payments can increase your total qualifying income, improving your debt-to-income (DTI) ratio. With a better DTI ratio, you might qualify for a higher mortgage amount or more favorable terms. However, lenders may discount some of this income if it has a limited duration or lacks stability.

4. Varied Lender Policies

Not all lenders in BC treat support payments the same way. Some are more flexible in including support payments in mortgage calculations, while others are stricter. A mortgage broker with experience in BC can help identify lenders who are more supportive of including these payments in qualifying income.

5. Consider a Mortgage Broker

Working with a mortgage broker who understands the unique mortgage policies in BC can be helpful, especially if support payments make up a large portion of your income. They can help you find lenders that are more willing to factor in these payments and may offer better rates based on your full income profile.

By providing proper documentation and choosing the right lender, support payments can positively impact your mortgage eligibility, helping you potentially qualify for a larger mortgage amount. For more personalized guidance, consider consulting a mortgage advisor who can assist with BC-specific lender requirements and market conditions.