For borrowers with non-taxable income, lenders may now gross-up this income for the purpose of mortgage qualifying. Some examples of non-taxable include are foster care, ministry work, non-taxable pension, and Indian Act Exemption for employment income.
Gross Up Mortgage Example:
Mr. Smith takes care of two foster children and receives $36,000 a year tax-free.
Borrower(s) non-taxable income * Gross-up factor = Grossed-up income
$36,000 * 1.35% = $48,600 (Total Grossed-up Income)
The number of mortgage financing products available to Canadians has expanded rapidly over the past few years. Call to find out which financing option is best suited to your circumstances.
MyMortgage.ca - Calgary Mortgage Broker
Phone us toll-free @