Text Size

Cashback Equity Program

Print
Some home buyers have an excellent credit history but have not yet saved the required down payment. Others have used their savings to build assets in different ways. We are delighted to offer mortgage default insurance to both these groups.

Acceptable loan purpose

  • Purchase transactions

Loan-to-value ratio limits

  • For one and two units - 95% LTV

Maximum Loan Amount

  • No Maximum Amount

Eligible properties

  • Maximum two units
  • New construction or existing properties

Terms

  • Fixed, standard variable, capped variable and adjustable rate mortgages are permitted

Amortization Options

  • Up to 35 years

Premium rates*

LTV Ratio

Single AdvanceTop-up Premiums

90.01 - 95.00%

2.90%

4.25%

 
Premium is non-refundable.
*A .20% premium surcharge will be applied to the above premium rates for every 5 years of amortization beyond the traditional 25 - year mortgage amortization period.

Borrower qualification

  • 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
  • Non-residing guarantors are not permitted. Non-residing co-borrowers are acceptable (must be an immediate family member and on title).
  • Lender to ensure that borrower demonstrates the ability to cover closing costs of at least 1.5% of the purchase price. These funds may be borrowed provided any associated repayments are included in the TDS calculation based on a 12-month repayment period.
  • GDS/TDS Guidelines:

    Credit Score

    GDS

    TDS

    <680

    35%

    42%

    680+No limit44%

Eligible equity sources

  • Lender cashback incentives
  • Equity borrowed from any source that is arm's length to the purchase or sale transaction, including personal loans, lines of credit or credit cards. Loan repayments must be included in the TDS calculation.
  • Gifts or grants from any party that is arm's length to the property purchase transaction
  • Rent to own payments that exceed a reasonable current market rent
  • Down payments may not be paid out of, or included in, the insured mortgage, including any recovery of lender cashback incentives

Ineligible equity sources

Some equity sources are not eligible. These include sources that are not arm's length or that are tied to the purchase or sale of the property, either directly or indirectly.

For example:

  • Builder incentives or loans
  • Realtor/ mortgage broker incentives or loans to the borrower that impact the property selling price
  • Loans/ gifts from the seller of the property (the vendor)
  • Third parties that receive payment from the vendor or the builder

Documentation requirements

  • Employment and income verification required upon request

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 (max 2 units)
  • Insured PA (residential, contractor and self-built)
  • Purchase Plus
  • Secondary Homes (Type A)

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

Ineligible Products

  • Business for Self (Alt A)
  • Cash-Out Refinance
  • Family Plan
  • New To Canada
  • Vacation Homes(Type B)

The insurance premium is payable once at the time of closing (except for Progress Advances where the premium is paid in installments during the construction phase, with a final installment paid when the home is completed). The insurance premium is not refundable and may be added onto the mortgage or paid in cash.