At Genworth Canada, we understand that sometimes saving the required down payment for a new home can be challenging. Genworth Canada Cashback Equity /Borrowed Down Payment mortgage insurance program helps make it possible for you to start building equity in your own home without having to save for years.

Note: To ensure eligibility for this program, please refer to the corresponding lender updates below addressing recent changes to the mortgage insurance guidelines:

Loans > 80% LTV - Subject: High-Ratio Mortgage Insurance Changes

Loans ≤ 80% LTV - Subject: Low-Ratio Mortgage Insurance Changes

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

  • Purchase transactions: 90.01% - 95% LTV

Eligible Properties:

  • Maximum 2 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.

Terms / Qualifying Interest Rate:

  • Fixed, standard variable, capped variable and adjustable rate mortgages are permitted
  • For loans with fixed rate terms greater than or equal to 5 years, the contract rate is used
  • For loans with fixed or variable rate terms less than 5 years, the qualifying interest rate is the greater of the contract rate or 5-yr benchmark rate

Amortization Options:

  • LTV > 80%: Up to 25 years

Premium Rate:

The premium payable will be the lesser of the premium as a % of the total new loan amount or the premium as a % of the top-up portion on the additional loan amount (if existing insured) based on the rates below:

LTV Ratio Premium rate Top-Up Premium
90.01 - 95.00% 4.50% 6.60%

Note: The insurance premium is non-refundable, paid at the time of closing and may be added onto the mortgage

Borrower Qualification:

  • Down payment options can include:
    • Lender cash back incentives
    • Borrowed sources that are arm's length to the purchase or sale transaction such as personal loans, lines of credit or credit cards
    • Gifts from non-immediate family members (an immediate family member is defined as a father, mother, child, brother, sister, grandparent, legal guardian, or legal dependant)
  • If the downpayment is borrowed, repayments must be included in the TDS calculation
  • A minimum credit bureau score of 650 is recommended at 90.01-95% LTV. We will adjudicate all deals using Genworth Financial Canada's proprietary scoring model
  • No previous bankruptcies
  • Non-residing co-borrowers are acceptable (must be an immediate family member and on title)
  • Non-residing guarantors are not permitted
  • Lender to ensure that borrower demonstrates the ability to cover closing costs of at least 1.5% of the purchase price (0.5% in Alberta). These funds may be borrowed provided any associated repayments are included in the TDS calculation based on a 12-month repayment period.
  • Existing requirements related to income, down payment and credit worthiness apply

Debt Service Ratios:

  • GDS 39% / TDS 44%

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

Portability:

  • Our mortgage default insurance is portable, so buyers can take advantage of a lender's portability plan. Refer to Portability Feature Product Overview for further details.

Assumptions / Assignments:

  • Mortgage is assumable subject to meeting lender guidelines

Eligible Products*:

  • Homebuyer 95 Program
  • Progress Advance Program
  • Purchase Plus Improvement Program
  • Vacation/Secondary Homes Program (Type A Properties)

* For specific underwriting guidelines related to the above eligible products, please refer to the applicable product overview

Ineligible Products:

  • Business for Self (Alt A) Program
  • Family Plan Program
  • New To Canada Program
  • Vacation/Secondary Homes Program (Type B Properties)

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