Acceptable Loan Purpose & Applicable Loan-To-Value Limits:
- Purchase transactions: 80%
- LTV Refinance transactions: 80% LTV
Loan Security:
Eligible Properties:
- Maximum 4 units
- 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
- In addition, 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
Ineligible Property Types:
- Time-share
- Interests Vacation Homes
- Commercial zoning
- Rooming Houses
- Quarter Share / Shared Ownership
- Rental Pools
Maximum Property Value:
- Property value less than $1,000,000. Exceptions may be considered on a case-by-case basis.
Maximum Loan Amounts:
- Metro Toronto, Metro Calgary & Metro Vancouver: $750,000
- Rest of Canada: $600,000
Equity Removal Limits:
- Maximum $200,000 (except when consolidating existing 1st & 2nd mortgages, where maximum LTV 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
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.
Qualifications:
Income & Employment:
- Standard income and employment verification requirements apply
Credit:
- Borrowers should have a strong history of managing their credit
- Recommended credit scores:
- 75.01-80% LTV: Minimum credit bureau score of 660
- ≤ 75% LTV: Minimum credit bureau score of 640 is required
- Two (2) trade lines with at least two (2) years history
- No prior bankruptcy
- Genworth Canada will consider applications with lower scores based on the overall merit of the application and where other risk mitigating factors exist
Down Payment:
- Must be from own resources and may include personal savings, RRSP withdrawal, existing home equity, proceeds from sale of property
Rental Income:
- The lesser of actual rent or fair market rent as determined by an approved appraiser
- Income from a non-conforming basement suite will be considered on an exception basis
- PI: Also include 50% of condo fees
- An 80% rental offset calculation will be applied to derive the
TDS: TDS: Principal + Interest + Other Debt Obligations – (Rental Income x 80%) Gross Annual Income
Additional Criteria:
- Personal guarantees are required when the borrower is not an individual (e.g. corporate entity).
- The personal guarantee cannot be released without prior consent from Genworth
Documentation 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.
- When porting from an existing standard Genworth Canada insured loan to an Investment Property loan, the premium will be the lesser of:
- The outstanding mortgage balance multiplied by 1.65% + the top-up amount multiplied by the top-up premium rate, or
- The new loan amount multiplied by the full premium rate
Assumptions / Assignments:
- Mortgage is assumable subject to meeting lender guidelines
Eligible Products:
- Cashout Refinance Program
- Purchase Plus Improvement Program
