Mortgage Street recognises that Family Tax Benefit (FTB) payments can form a valuable part of a borrower's income. For eligible applicants, PAYG income that includes Family Tax Benefit may assist in meeting serviceability requirements, providing greater access to a range of mortgage options.
Key Benefits for Borrowers:
Expanded Income Recognition: Family Tax Benefit may be considered alongside traditional employment income.
Enhanced Borrowing Capacity: Supports stronger serviceability outcomes for borrowers with dependent children.
Increased Financial Confidence: Recognising Family Tax Benefit income allows borrowers to achieve home ownership goals while maintaining family stability.
Key Benefits for Mortgage Brokers:
Expanded Client Opportunities: Ability to assist a wider range of family borrowers by including Family Tax Benefit income.
Increased Loan Conversions: Strengthen serviceability assessments by incorporating verified Family Tax Benefit payments
Diverse Product Access: Brokers can position borrowers into multiple Mortgage Street products, offering greater flexibility and matching solutions to client needs.
Competitive Advantage : Supporting clients who receive Family Tax Benefit income positions brokers as knowledgeable and adaptable in meeting evolving borrower profiles.
Ready to Support More Clients?
Mortgage brokers should contact Mortgage Street to offer their clients access to flexible lending solutions that recognise Family Tax Benefit income as part of PAYG serviceability.
As Australia’s premier alternative lending solution, our mission is to empower our brokers to achieve their goals
Our goal at Mortgage Street is to provide you your customers with first-class service and innovative products to help you deliver solutions to your clients who don’t fit traditional lending criteria. But if your clients don’t qualify for a bank loan, Mortgage Street can always find alternatives. With 24 mortgage options available, we can help your customers find the right fit for their unique situation.
7 reasons why you should work with Mortgage Street
Mortgage Street is committed to providing a modern, efficient service to our clients. By distributing home loans through professional Australian mortgage brokers, we can offer a convenient and streamlined digital process that allows you to apply for a loan, submit documents, and track the progress of your application from the comfort of your own home.
Mortgage Street is committed to providing a modern, efficient service to our clients. By distributing home loans through professional Australian mortgage brokers, we can offer a convenient and streamlined digital process that allows you to apply for a loan, submit documents, and track the progress of your application from the comfort of your own home.
Mortgage Street is committed to providing a modern, efficient service to our clients. By distributing home loans through professional Australian mortgage brokers, we can offer a convenient and streamlined digital process that allows you to apply for a loan, submit documents, and track the progress of your application from the comfort of your own home.
A Mortgage Street accredited mortgage broker can help you to maximise your borrowing capacity by advising on the best loan structure and providing guidance on how to strengthen your application. This can be helpful if you have a complex financial situation or are self-employed.
If you are planning to purchase an investment property, a Mortgage Street accredited mortgage broker can help you understand the tax implications of negative gearing and advise on the best home loan options to suit your goals.
A Mortgage Street accredited Mortgage brokers have access to a wide range of lenders, including those that may consider larger loan amounts. This can be especially useful if you are looking to purchase a more expensive property or undertake extensive renovations.
Many lenders require mortgage insurance for home loans with a loan-to-value ratio (LVR) of over 80%. By working with a Mortgage Street accredited mortgage broker, you may access lenders that do not require mortgage insurance up to an LVR of 85%, saving you money on your loan.
To help you find what you’re looking for, we’ve grouped our lending criteria into key categories.
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Helpful guides & forms
- MSt 001 Customer Information Collection
- MSt 002 Payroll Authority form
- MSt 003 Loan Scenario form
- MSt 007 Applicant details verification
- MSt 011 Lo-Doc Declaration Accountants Verification
- MSt 012 Full Partial Discharge Authority
- MSt 013 Rate Review Form
- MSt 014 Gift Declaration Form
- MSt 015 Direct Debit Request
- MSt 028 Buying Your First House
- MSt 063 Bespoke broker premium
- MSt 067 Everyday transaction account
- Loan Application Documentation Checklist
- MSt 134 Request for Hardship Assistance
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FAQ
Can Family Tax Benefit (FTB) be considered as income when applying for a home loan in Australia?
Yes, many lenders including Mortgage Street accept FTB Parts A and B as supplementary income when assessing home loan applications. However, it's typically considered alongside other income sources, such as employment income. Some specialist lenders may accept FTB as the sole income source, but this often comes with stricter lending criteria and potentially higher interest rates.
What documentation is required to verify FTB income for a mortgage application?
Applicants need to provide:
- Recent Centrelink income statements showing FTB payments
- Bank statements confirming regular FTB deposits
- Additional documents such as payslips or tax returns if combining FTB with other income sources
Does the age of children affect the acceptance of FTB income by lenders?
Yes, the age of the children can influence lender decisions. Some lenders are hesitant to consider FTB income if the children are over a certain age, often around 11 years old, due to the potential reduction or cessation of benefits as children age. However, certain specialist lenders like Mortgage Street may accept 100% of FTB payments regardless of the children's ages.
Are there income thresholds for FTB Parts A and B that borrowers should be aware of?
Yes, FTB payments are subject to income tests:
- FTB Part A: Maximum rate is available if the family's adjusted taxable income is $65,189 or less. Payments reduce as income increases and cease beyond certain thresholds, which vary based on the number and age of children.
- FTB Part B: Eligibility is generally for single parents or single-income families. The primary earner's income must be $117,194 or less to qualify.
How does receiving FTB impact the borrowing capacity of an applicant?
Including FTB as part of the income can increase the borrowing capacity of an applicant, especially when combined with employment income. However, the exact impact varies among lenders, and some may apply discounts or caps on the amount of FTB considered in the assessment.
What strategies can mortgage brokers employ to assist clients receiving FTB?
Mortgage brokers can:
- Connect to Mortgage Street that accept FTB as part of the income assessment
- Ensure clients provide complete and up-to-date documentation
- Advise on combining FTB with other income sources to strengthen the application
- Stay informed about lender policies regarding government benefits
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+LVR stands for the loan-to-value ratio. LVR is the amount of your loan compared to the Bank’s valuation of your property offered to secure your loan expressed as a percentage. Home loan rates for new loans are set based on the initial LVR and won’t change during the life of the loan as the LVR changes.
*Comparison rate: The comparison rate is based on a loan of $150,000 over the term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Loan applications, refinances and balloon amounts are subject to credit assessment.
Conditions, credit criteria, fees and charges apply. Based on Mortgage Street’s credit criteria, residential lending is not available for Non-Australian resident borrowers. Interest rates subject to change. Before making a decision, it’s best to read the terms and conditions.