Can I use the Family Tax Benefit to Service a Loan?
The family tax benefit is a two-part payment that helps with the cost of raising children. The eligibility for this government payment is that you have a dependant in your care for at least 35%, the dependant must be a child or a secondary student younger than 20 years of age and you must meet an income test.
If you or your partner are receiving the Family Tax Benefit A & B, it can be used for the servicing of a loan. The government benefits may be used in servicing calculations on a limited basis as they are designed to provide a very basic standard of living. The most common case where using the Family Tax Benefit for servicing is when one applicant is working and that income isn’t sufficient to solely service the loan.
Evidence required for use in servicing –
- Letter from Centrelink within 60 days of the signed statement of position date confirming ongoing payments. OR –
- A transaction history from the customer's account statements where the following are met:
- The amount received was consistent over a 3-consecutive month period; and
- The family tax benefit can be determined from the transaction description.
At Mortgage Choice Geebung John and Daniel strive to provide the best customer service and provide comfort in obtaining finance. They will guide you through each step of the loan application all the way to settlement and beyond.
Make a step in the right direction today and contact Mortgage Choice Geebung on 07 3833 9666 to ensure what you’ve been told in the past is in fact true and accurate.