For Canadians looking to make the move to homeownership, the Interest Advantage Mortgage Canada Homebuyer program provides qualified borrowers with an opportunity to own a home with as little as a 5% down payment
Acceptable Loan Purpose & Applicable Loan-To-Value Limits:
- 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.
First and second mortgages
Maximum Property Value:
- 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
Qualifying Terms And Interest Rates:
- Property value must be less than $1,000,000. Exceptions may be considered for LTV ≤ 80%.
- 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.
- LTV > 80%: Up to 25 years
- LTV ≤ 80%: Up to 40 years
Income & Employment:
- Standard income/employment verification requirements apply
- 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
- 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
For 3 & 4 Units, the additional guidelines apply:
Documentation / Information Requirements:
- 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.
- 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.
Assumptions / Assignments:
- 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.
- Mortgage is assumable subject to meeting lender guidelines
- Progress Advance Program
- Purchase Plus Improvements Program
- Family Plan Program
- New To Canada Program
- Vacation/Secondary Homes Program (Type A Properties)
- Second Mortgage Program
- Business For Self (Alt-A) Program
- Borrowed Down Payment Program
- Cash-Out Refinance Program
- Vacation/Secondary Homes Program (Type B Properties)
- Investment Property Program