Family Plan Program

We are pleased to have introduced this program to Canada. It enables people to help buy a home for immediate family members who have good credit but lack the income to meet standard GDSR/TDSR requirements.

Acceptable loan purpose

• Property purchase
• Single advance only (completion loans)
• This program does not include the purchase of non-owner-occupied investment properties, nor purchases for family members with poor credit

Suggested applications of the program include

• A parent who wishes to help an adult entrepreneurial child buy a home
• A parent helping to buy a home for an adult child at a post-secondary educational facility
• An adult helping to buy a home for elderly parents who are on a fixed income

Loan-to-value ratio limits

• The maximum LTV ratio for this program is 95.00%. This maximum level is reserved for borrowers with a very strong covenant.

Max Loan Amounts

• No Maximum Loan Amount

Eligible properties

• Maximum two units with at least one unit occupied by the immediate family member as the principal residence
• Property must be in good condition with good marketability
• Must be located in a municipality with proven resale market stability
• New construction or existing properties

Terms

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

Amortization options

• LTV > 80%: Up to 35 years
• LTV ≤ 80%: Up to 40 years

Premium rates

LTV Ratio	Premium Rate*
Up to 65%	0.50 %
65.01% - 75%	0.65 %
75.01% - 80%	1.00 %
80.01% - 85%	1.75 %
85.01% - 90%	2.00 %
90.01% - 95%	2.75 %
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

• The income and debts, including shelter costs, of all persons on the application will be used along with those of the occupying borrower to calculate the TDSR
• Applicant(s) buying the home for a family member must have clean credit, stable employment and income, positive net worth and a down payment from own resources
• An immediate family member is defined as a father, mother, child, brother, sister, grandparent, legal guardian, or legal dependant
• All qualifying applicants, including the resident family member, must be on the title
• All regular qualifying criteria for purchase business apply
• GDS/TDS Guidelines:
  
  

  Credit Score	GDS	TDS
  <680	35%	42%
  680+	No Limit	44%

 

Documentation/information requirements

• Standard documentation requirements apply
• Genworth 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 home buyers can take advantage of a lender's portability plan. For further details, refer to Portability Feature Product Overview.

Eligible Products **

• Homebuyer 95 (max 2 units)
• Purchase Plus Improvements

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

Ineligible Products

• Alt A
• Cashback Equity
• Cash-Out Refinance
• Insured Progress Advance
• New To Canada
• Secondary homes/Vacation Homes

The insurance premium is paid once at the time of closing . The insurance premium is not refundable and may be added onto the mortgage or paid in cash.