Catherine M. and her husband are a blended family living in Montreal. Together they have a three-year-old child. They were looking to buy a house with an additional bachelor suite for $580,000, and have $200,000 as a down payment.
Catherine has been a teacher for twenty years, has an excellent credit score, always made her payments on time and she has no debt.
Along with her mother and brother, she owns a secondary property and has to pay for one third of this property, but lenders have to apply full payment responsibility for this property.
Her spouse also has to pay his ex-wife for child support, therefore adding to his debt ratio.
While the couple have the financial capability to make payments, according to the new rules, she cannot qualify. Instead, they need to look for a $350,000 house with a bachelor suite.
For blended families, having to consider the alimony payment as a debt has a major impact on the figures. Often these families who have shared custody of the kids have larger families to accommodate.