Suggested applications for this program include:
- A parent helping to buy a home for an adult child at a post-secondary educational facility
- An adult helping to buy a home for elderly parents who are on a fixed income
- This program does not include the purchase of non-owner occupied investment properties nor purchases for family members with poor credit
Acceptable Loan Purpose & Applicable Loan-To-Value Limits:
- Purchase transactions: 95% LTV
- 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
Loan Security:
Eligible Properties:
- Maximum 2 units where 1 unit must be occupied by an immediate family member
- 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
Qualifying Terms And Interest Rates:
- Fixed, standard variable, capped variable and adjustable rate mortgages are permitted
- Maximum interest rate term of 25 years
- The qualifying interest rate is the greater of the contract rate or 5-year benchmark rate
Amortization Options:
Qualifications:
Income & Employment:
- Standard income and employment verification requirements apply
Credit:
- >80% LTV: At least one applicant is required to have a minimum credit bureau score of 600
- ≤ 80% LTV: At least one applicant should have a minimum recommended credit bureau score of 680
Down Payment:
- Must be from own resources and may include personal savings, RRSP withdrawal, existing home equity, proceeds from sale of property.
Additional Criteria:
- Applicant(s) buying the home for a family member must have clean credit, stable employment and income, positive net worth
- An immediate family member is defined as a father, mother, child, brother, sister, grandparent, legal guardian, or legal dependent
- All qualifying applicants, including the resident family member, must be on the title
- The income and debts, including shelter costs, of all persons on the application will be used along with those of the occupying borrower to calculate the TDSR
