Child Support as Income

[gailh]

Hi,

Does anyone know which lenders will factor in child support payments when calculating DSR. My friend gets child support of a couple of hundred dollars a week from her ex (informal arrangement and not through the child support agency).

This can all be shown through bank statements etc.

Surely lenders must factor this in: every second woman in Australia would have part of her income made up this way, surely!

Gail

 

[Learner]

Hi Gail,

I've heard from a friend that Homeside take it into consideration although do not use it as part of the servicing figure, ie wages, rental income. It would also depend on the age of the child and documentation to evidence this income, ie as stated bank statements and making sure that this was regular. If it is a private arrangement whats to stop the partner who is paying in actual fact stop paying, i guess thats why its only taken into consideration and not factored into the income. Also depends on other strengths of the application, what LVR the individual is wishing to borrow at, ie beyond 80% you will have to deal with lenders mortgage insurance; third party and therefore they may not take this into consideration at all. Any other lenders i can't say, hope this helps though.

Learner

 

[Rolf Latham]

Hi gail

Almost all lenders will take it into acct IF

1. There is a cour order in place
2. The kids are 10 years old or younger
3. There is evidence that there is willingness on the other party to pay.
4. No LMI

Various different things are possible.

Ta
rolf

PS Men often are entitled to child support when they have custody :O),.