Investment Property

Genworth’s Investment Property Program provides qualified borrowers an opportunity to purchase an investment property with as little as a 20% down payment.

Acceptable Loan Purpose & Applicable Loan-To-Value Limits:
  • Purchase transactions: 80% LTV
  • Refinance transactions: 80% LTV
Loan Security:
  • First mortgages
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.

Borrower Qualification:

Income & Employment
  • Standard income and employment verification requirements apply
  • 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
  • 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