First Time Buyer

Acceptable Loan Purpose & Applicable Loan-To-Value Limits:

Purchase Transactions:

• 1 & 2 units: 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
    

Note: All mortgage insurance applications received between December 11, 2015 and February 14, 2016 where the closing date is after July 1, 2016; or received on or after February 15, 2016, the above minimum down payment guidelines will apply.

• 3 & 4 units: 90% LTV
  

Loan Security: First and second mortgages Eligible Properties:

• Maximum 4 units where 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
  
• In addition, for 3 & 4 units, the property must meet the following criteria:
  
  • Municipal zoning
    
  • Fully self-contained units
    
  • Estimated remaining economic life of the property should be a minimum of 25 years.
    
  • Must be located in a major centre with a viable investor market
    

Maximum Property Value:

• Property value must be less than $1,000,000. Exceptions may be considered for LTV ≤ 80%.
  

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.
    

Amortization Options:

• LTV > 80%: Up to 25 years
  
• LTV ≤ 80%: Up to 40 years
  

Borrower Qualification:

Income & Employment:

• Standard income/employment verification requirements apply
  

Credit

• 80% LTV Minimum credit bureau score of 600 is recommended
  
• 60.01 – 80% LTV Minimum credit bureau score of 580 is required
  
• ≤ 60% LTV Minimum credit bureau score of 580 is recommended
  

Down Payment

• Qualified home buyers may use traditional down payment sources including personal savings, RRSP withdrawal, non-repayable gift from immediate family member(s), sweat equity, existing home equity, proceeds from sale of property
  
• Government grants may be considered if pre-approved by Genworth
  

Additional Criteria For 3 & 4 Units, the additional guidelines apply:

• Borrowers must have clean credit, stable employment/income, down payment from own resources, positive net worth and liquid assets to cover 3 months payments
  
• If the down payment is a gift, we require an acceptable guarantor. A guarantor is also needed if there are significant variations from the qualification guidelines.
  

Documentation / Information Requirements:

• Standard documentation requirements apply
  
• Genworth Canada may request that the lender provide a copy of the required documentation on a case-by-case basis
  
• For 3 & 4 unit properties Genworth Canada requires that the lender obtains a general assignment of rents and leases or include this requirement in the standard charge terms.
  

Portability:

• Our mortgage default insurance is portable, so home buyers can take advantage of a lender’s portability plan. For further details, refer to Portability Feature Product Overview.
  

Assumptions / Assignments:

• Mortgage is assumable subject to meeting lender guidelines
  

Eligible Products:

• Progress Advance
  
• Program Purchase Plus Improvements Program
  
• Family Plan Program
  
• New To Canada Program
  
• Vacation/Secondary Homes Program (Type A Properties)
  
• Second Mortgage Program
  

Ineligible Products:

• Business For Self (Alt-A) Program
  
• Borrowed Down Payment Program
  
• Cash-Out Refinance Program Vacation/Secondary Homes Program (Type B Properties)
  
• Investment Property Program