2nd Mortgage Options

This program provides borrowers with the additional flexibility of allowing a Second Mortgage to be registered against their property up to 95% combined LTV on a purchase and 80% combined LTV on a refinance.

Acceptable Loan Purpose & Applicable Loan-To-Value Limits:
  • Purchase transactions: 95% Combined Loan-To-Value (CLTV) based on 1st & 2nd mortgages
    • Property value ≤ $500,000 – 5% down payment required
    • Property value > $500,000 and < $1,000,000 – 5% down payment required up to $500,000, with an additional 10% down payment on the portion of the home value above $500,000
  • Refinance transactions: 80% Combined Loan-To-Value (CLTV) based on 1st & 2nd mortgages
Special Conditions
  • The 1st mortgage must be Genworth-insured under any of the following scenarios:
    • Purchase/Purchase Plus applications
    • Combined Loan to Value (CLTV) is > 90%
    • Alt. A applications
  • If the application type is a refinance, the 1st mortgage does not have to be Genworth-insured, however, the following conditions will apply:
    • 1st mortgage must be held by a Genworth Canada approved lender
    • 1st mortgage must be on repayment for a minimum of 1 year
  • Under all scenarios, the 1st mortgage must meet the following conditions:
    • Current at time of 2nd mortgage application with stable repayment history
    • 2nd mortgage agreement must contain cross-default clause (default on the first constitutes default on the second)
    • In the event of a re-advanceable 1st mortgage, no amount may be re-advanced until after the 2nd mortgage is paid out
    • If CLTV > 90%, the 1st mortgage must be held by the same lender
Eligible Properties:
  • Maximum 4 units where at least 1 unit must be owner occupied
  • New construction covered by a lender approved New Home Warranty Program
  • Existing resale properties
  • Readily marketable residential dwellings, located in markets with demonstrated ongoing re-sale demand
  • Estimated remaining economic life of the property should be a minimum of 25 years.
Maximum Property Value:
  • Property value must be less than $1,000,000. Exceptions may be considered for LTV ≤ 80%.
Equity Removal Limits:
  • For CLTV ≤ 80%, equity removal is limited to $200,000
  • If the loan purpose is to consolidate the 1st and 2nd mortgages, the maximum CLTV ratios will apply
Qualifying Terms And Interest Rates:
  • Fixed, standard variable, capped variable and adjustable rate mortgages are permitted
  • Maximum interest rate term of 25 years
  • LTV >80%
    • For mortgages with fixed rate terms greater than or equal to 5 years, the contract rate is used.
    • For mortgages with fixed rate terms less than 5 years and all variable rates regardless of term, the qualifying interest rate is the greater of the contract rate or 5-year benchmark rate.
  • LTV ≤ 80%
    • For mortgages with fixed rate terms greater than or equal to 3 years, the contract rate is used.
    • For mortgages with fixed rate terms less than 3 years and all variable rates regardless of term, the qualifying interest rate is the greater of the contract rate or 3-year posted rate.