Monetary loan

How to get a home loan if you are a single parent

The final factor impacting income is the credit card you hold.

Recent changes mean that even if you wipe out your entire credit card balance each month, an amount sufficient to pay off your entire credit card limit within three years is added to your expenses and excluded from your income. .

Remember that all banks also add a substantial 3% service “buffer” to the official mortgage interest rate they offer, to test if you can extend those payments if rates rise by that amount.

All that bad news aside, most lenders should consider your child support payments.

Justin Thom, mortgage specialist at SEQ Advice, confirms that it is included by most banks.


“Just make sure your ex pays on time and their payments match at least the court order for the last three months (for some banks it’s six months). It’s also important that they put their name on it. on the bank transfer,” says Thom. “As a rule, this income can be used, as long as it still has at least three years left to run (the child is no older than 14).

Other measures that might help you get a loan across the line are taking extra work for a few months, if you are self-employed, temporarily canceling insurances (making sure you can get them back, if necessary) and to cut your credit cards.

However, keep in mind that the three-year rule to clear also applies to credit card applications, so you may never be approved for the same or any credit limit. credit.

Your safest strategy may be to try switching mortgage products or requesting a price reduction from your current lender.

If you walk away knowing that the best adjustable rate mortgage on the market today is 1.85%, you might be able to negotiate a better deal without the bank looking into your living expenses.

  • The advice given in this article is of a general nature and is not intended to influence readers’ decisions regarding investments or financial products. Before making financial decisions, they should always seek their own professional advice that takes into account their personal circumstances.

Nicole Pedersen-McKinnon is the author of How to Get a Free Mortgage Like Me. Follow Nicole on Facebook, Twitter Where instagram.