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Child Support Payment

Discussion in 'Property Finance' started by TaylorChang, 20th Jan, 2016.

  1. TaylorChang

    TaylorChang Well-Known Member

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    Hi all,

    I thought I would like to see if any have experience in factoring in child support payment into their servicing.

    I know that ANZ is not allowed child support payment to be factoring in servicing calculation.
    NAB is not keen on taking the child support payment into servicing either.( it needs at least 6 month crediting history to be considered)
    Most of the majors need the crediting history as well, ie they don't like fresh child support agreement.

    Does anyone know which bank/lender is more child support friendly ? ie, doesn't require crediting history and willing to accept child support agreement on face value into servicing calculation ?

    Many thanks in advance :)
     
  2. JayJones

    JayJones New Member

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    I would assume first try for that type of income would be Liberty. They may not like the issue of no payment history but if it only requires a small portion of the CSA to support servicing they may consider?

    Best to chat to your BDM there.
     
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  3. Mombius Hibachi

    Mombius Hibachi Well-Known Member

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    Hi Taylor, not sure if you really understand this, but child support payments are for your CHILDREN.

    Not repaying your loans.
     
  4. Biz

    Biz Well-Known Member

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    It's still income. The banks mark you down on how many dependants you have so why not factor it in?
     
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  5. Redom

    Redom Mortgage Broker Business Member

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    CBA include it (at all LVRs), but i'd be re-confirming that with credit before submitting too. ANZ may be able to include at 80% from my memory. They won't above 80%.

    The child needs to be <14 aswell, so they receive it for the next 3 years for it to be considered. For verification, will need an official letter and/or banking credits.

    In terms of using the income, sure their for your children, but they help pay part of the expenses of children (and those expenses are included in serviceability calcs, regardless of whether there's payments or not). So its useable with some lenders.

    Good luck! :)

    Cheers,
    Redom
     
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  6. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Some banks will take it into account depending on the ages of the children and whether there's a CSA agreement in place.

    They will want to see the agreement coupled with bank statements showing the regular payments deposited into the account.

    Cheers

    Jamie
     
  7. Xenia

    Xenia Adelaide Property Manager Business Member

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    is a child support payment something that is received from the government or an ex spouse?
    sorry I'm not familiar with the terminology.
    my kids drain my accounts but no one puts money in there for them except me :(
     
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  8. Mombius Hibachi

    Mombius Hibachi Well-Known Member

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    Shouldn't a property manager know this already?
     
  9. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    The latter - and it's generally in accordance with an agreement via the child support agency.

    Cheers

    Jamie
     
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  10. Xenia

    Xenia Adelaide Property Manager Business Member

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    thanks Jamie
     
  11. Tony Fleming

    Tony Fleming Well-Known Member Business Member

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    Your a tool
     
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  12. Mombius Hibachi

    Mombius Hibachi Well-Known Member

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    Do you have any idea how funny that is coming from someone who doesn't know the difference between 'your' and 'you're'?
     
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  13. Xenia

    Xenia Adelaide Property Manager Business Member

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    thanks DK
    responding to baiting questions is against forum rules - he is derailing. I know you have a bigger focus - as do I.
     
  14. Tony Fleming

    Tony Fleming Well-Known Member Business Member

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    Your right.
     
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  15. Xenia

    Xenia Adelaide Property Manager Business Member

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    There, their, they're.
    It will all be OK.
     
  16. TaylorChang

    TaylorChang Well-Known Member

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    Thanks for all the input.

    I will give Liberty a call.

    Unfortunately, ANZ already changed their view on the child support payment policy. They don't take child support payment into servicing at all, as I just spoke to them this morning...... so frustrated...:confused:

    Most of the majors need to have Child Support Payment History at least 3 months ( not just agreement) to be able to consider it as part of servicing. ( NAB, STG need at least 6 months)..
     
  17. Mombius Hibachi

    Mombius Hibachi Well-Known Member

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    Quite.

    Serious question: What exactly is it about my post that makes me a tool?

    If I was interviewing prospective PM's to manage my property or properties and I raised Child Support in whatever capacity and their reaction to me was "Is a child support payment something that is received from the government or an ex spouse? Sorry I'm not familiar with the terminology.", I would immediately get up, say "Thank you for your time." and leave.

    As a PM, it is her job to assess the ability of prospective tenants to pay their rent, is it not? Which means looking into their various income streams. If a PM has little to no understanding of Child Support payments, that sends a very strong, very loud message about their abilities as a PM. A message which means that I certainly would not be entrusting my valuable asset(s) to them. If they don't understand Child Support payments or the terminology, what else don't they understand?

    Asking pertinent questions of a supposed professional in relation to property management questions on a property forum does not make me a tool, surely?

    The fact that she disregards my post as 'baiting' and 'derailing the thread', instead of addressing any concerns directly, only exacerbates my suspicions in relation to how professional her services may be. If my professional knowledge and/or standards had been questioned on a public forum (and they have been, a number of times), I would defend myself and my business, not so much to the person doing the challenging, but to show the thousands of readers (and potential clients) that yes, I actually know what I'm doing rather than acting in a dismissive manner.
     
    Last edited: 20th Jan, 2016
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  18. Xenia

    Xenia Adelaide Property Manager Business Member

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    OK Mark - Here you go:

    Regarding screening of tenants - Everything is screened thoroughly in my office.
    There are specific criteria for affordability of a given rental and if they do not fall into the formula my office has for affordability the application is rejected before it is even given to the landlord.

    all income is checked and verified including child support payments, centrelink payments, and any other income.

    Pets are screened also, we look at any damage a pet has done through routine inspections.

    All tenants are screened through databases. My office is suspicious of an application we are screening today and the application may be rejected because she has applied for 16 other properties this month. Waiting to speak with her property manager but it does not look like it will go through.

    We check ledgers, verify everything - very very strict to avoid headaches later.

    However, here is the thing I DON'T DO ANY OF IT!

    I have an office with STAFF who are dedicated to screening applications all day long, whether I know that the income from an ex husband is called "child support payment" or not it does not matter because I am the business owner, the entrepreneur, the driver of the business. I focus on business development, step in when something goes wrong - because I can put it right very quickly, step in when something has to be renovated, revamped to add value to increase rent, educate investors - I run all the seminars, talk to landlords all day long, ensure that most of our properties are LEASED with as close to zero vacancies as possible - it takes selling skills in this market and that is my strength. Admin is not my strength - I hate it, I employ people to do it.

    thanks for asking.
     
  19. Tony Fleming

    Tony Fleming Well-Known Member Business Member

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    I would personally be concerned if a PM was relying on child support to help make rent repayments. I've never once talked to or had a PM talk to me about child support in all my years as an investor. This is a place to learn not judge, like today I learnt to say you're instead of your, xenia learnt about child support and you learnt you come off as a tool by making stupid unhelpful comments. You're putting someone down for generally not knowing something.
     
  20. TaylorChang

    TaylorChang Well-Known Member

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    Really appreciate everyone's comment. :)
     
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