Multi-Generational Family Household Expenses = Boosts You Application's Income

Unlock Your Borrowing Power: How Contributory Income Can Revolutionize Your Mortgage

In an ever-evolving Canadian housing market, families are adapting, and so should their mortgage strategies. More and more Canadians are choosing multigenerational living, creating homes that are not just places to live but collaborative financial ecosystems. For many, this trend presents an innovative opportunity to enhance their mortgage options through a powerful concept:

Contributory Income.

As a mortgage professional, I've seen firsthand how understanding and leveraging every available financial resource can make the difference between a dream and a reality. Let’s break down what contributory income is and why it might be the missing piece in your homeownership journey.

What Exactly is Contributory Income?

Simply put, contributory income is the financial contribution made by family members who live in the same household as you. This isn’t just about a roommate chipping in for rent; it’s about acknowledging the financial support from a parent, adult child, or other relative who helps with household expenses. This assistance can be direct (e.g., contributing to the mortgage payment) or indirect (e.g., covering utility bills or groceries).

By formally recognizing this income, we can substantially increase your borrowing capacity. This unique strategy is typically available on alternative mortgage solutions, providing a flexible path for those who might not fit traditional lending criteria.

Why This Matters for You

Incorporating contributory income into your mortgage application offers three significant advantages:

1. Boost Your Borrowing Power: By including these contributions, you can qualify for a larger mortgage, potentially giving you access to better terms and a wider range of properties.

2. Ease Financial Burdens: Shared living means shared expenses. By formally acknowledging this, your family's collaborative financial strategy is recognized, making homeownership more attainable and sustainable over the long term.

3. Promote Family Support: This approach validates the collective effort of your family. It's a way of turning shared living arrangements into a tangible financial benefit that supports everyone's well-being.

How It Works: The Practical Details

We can use up to $1,400 per month in major urban centres or $1,200 in other locations. To ensure consistency and stability, this income must have been consistent for at least six months, although exceptions can be made on a case-by-case basis.

Documentation is a straightforward process. We can validate the contribution through:

• Bank statements showing regular transfers.

• The contributor’s income documents.

• Utility bills that show the contributor’s name, indicating their financial involvement.

It's important to note that this income is capped at 30% of the total income, excluding rental income and certain benefits, ensuring your mortgage application remains balanced and strong.

Your Family's Future, Secured Together

Leveraging contributory income is more than just a financial hack; it's a modern approach to securing a home that supports the unique dynamics of Canadian families today. It allows us to craft tailored, flexible mortgage solutions that reflect your reality, not just a one-size-fits-all model.

By enabling you to use every financial resource available, we not only help you secure your dream home but also reinforce the strength and collaboration of your family.

Ready to explore how contributory income can work for you? Let's connect and discuss a strategy that makes the most of your home, together.

MCAN Home Lending