finder.com.au

Do child support payments count as income for mortgage applications?

Going through divorce is emotionally and financially draining, but rest assured, some lenders will accept child support payments as income if you decide to refinance your home loan.

Belinda Punshon
Belinda Punshon

Updated

Fact checked

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

Divorcing a partner is a difficult and stressful time as you are knee-deep in court proceedings, paperwork and legal appointments.

If you’ve decided to refinance your home loan post a divorce settlement, the good news is that some lenders will still accept your application given that you receive child support benefits as a main source of income.

Find out which benefits are generally accepted and what documentation you’ll need to provide to make the application process as smooth as possible.

If you’re thinking of refinancing with another lender, you can read our refinancing after divorce guide.

ALSO READ: Home loans for Centrelink recipients

ALSO READ: Invest in property as a single parent

ALSO READ: How to get your name off title after a divorce

Which benefits are accepted?

Family Tax Benefits

Family Tax Benefits (FTB) Part A and Part B and child support income are accepted by a number of lenders. However, keep in mind that some lenders view child support payments as an unreliable source of income so they may not take this into consideration when reviewing your borrowing capacity.

The lender will consider the following:

  • Age of dependents. Most lenders will take into account the age and number of dependents that you have before deciding whether or not this is an acceptable form of income for the loan. The older your children, the less likely the lender will accept your Family Tax Benefit (FTB) income, particularly children aged 11 years and over.
  • Centrelink statements. The lender will request at least 6 months of Centrelink statements. You can download a statement from the Department of Human Services website.

Child support payments

child supportSome Australian lenders will accept child support payments when assessing your income for a home loan application.

When speaking to your mortgage broker or lender about your situation, you'll need to specify whether the child support payments are via the Child Support Agency (CSA) and whether the payments are court ordered.

You may also be required to supply the following paperwork:

  • Family Court Law Order
  • Bank statements showing the benefit being deposited into your account and a steady deposit history (e.g. at least 6 months)
  • A letter from your solicitor
  • A letter from the Child Support Agency (CSA)

Compare more brokers in the table below

Data indicated here is updated regularly
Name Product Upfront consultation fee Variable rates from Comparison rates from Lenders on panel Apply Now
Aussie
Aussie
$0
2.99%
3.02%
22
More Info
Aussie is a long-established mortgage brand with over 1,000 brokers across the country.
Finsure
Finsure
$0
3.03%
3.04%
35
More Info
Finsure has a large panel of lenders and offers flexible mortgage solutions for borrowers.
loading

Compare up to 4 providers

How much can I borrow?

When determining your serviceability potential, a lender will typically review your recent Centrelink statements to work out your annual gross income. Although they will treat your application on a case-by-case basis, ultimately they will review your financial situation to decide whether the support benefit is sufficient to repay the loan.

You can use our calculator below to estimate how much you can afford to borrow.

More guides on Finder

Home Loan Offers

Important Information*
Logo for Westpac Flexi First Option Home Loan - Basic Variable Rate (Owner Occupier, P&I)
Westpac Flexi First Option Home Loan - Basic Variable Rate (Owner Occupier, P&I)

Up to $3,000 refinance cashback. A flexible and competitive variable rate loan. Eligible borrowers refinancing $250,000 or more can get $2,000 cashback per property plus a bonus $1,000 for their first application. Other conditions apply.

More info
Logo for St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)

Up to $4,000 refinance cashback. With this competitive variable rate loan from St.George, refinancers borrowing $250,000+ can get up $4,000 cashback and borrow up to 90% of the property's value. (Terms, conditions & exclusions apply).

More info
Logo for Athena Liberate Home Loan - 70% to 80% LVR Owner Occupier, P&I
Athena Liberate Home Loan - 70% to 80% LVR Owner Occupier, P&I

A competitive variable rate mortgage for owner occupiers $0 application and $0 ongoing fees. This interest rate falls over time as you pay off the loan.

More info
Logo for Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR ≤ 80% (Owner Occupier, P&I)
Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR ≤ 80% (Owner Occupier, P&I)

Get a competitive variable interest rate with no application fee or ongoing fees.

More info

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site