How Do Child and Spousal Support Payments Affect Mortgage Qualification?

Thursday Oct 12th, 2017


Child and spousal support payment obligations will often impact mortgage financing available.

The majority of lenders treat support payments as liabilities; and for most buyers this will significantly affect borrowing limits.  I have an excellent solution through an A lender; support payments are deducted from income rather than treating them as a liability.  The following example compares the two methods & as you can see, the majority of lenders would decline whereas the other lender can approve with A rates.

Mortgage required: $400K
Monthly mortgage P&I payment + taxes + heating = $2,400
Monthly spousal & child support payment = $4,500
Salary: $12,500 monthly ($150K/annual)





P&I + Taxes + Heat


Liabilities & Support Payments

Gross Debt Servicing Ratio (max 39%)

Total Debt Servicing Ratio (max 44%)

Lender deducts support from income

(gross income less support)



None (support was deducted from income)



Lender treats support as a liability







Let me know how I can help you. 

Maura Walsh

Sales Representative
Sutton Group Realty Systems Inc., Brokerage

Cell: (416) 803-4224/Office: (416) 762-4200


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