Vacation/Secondary Homes Program

At Genworth, we know that today's busy lifestyle requires more home ownership options - whether it's a second home in the city to reduce that weekly commute, or a cottage at the lake for weekend getaways. With our Vacation/Secondary Home Program, Canadians can now purchase a second home with an affordable monthly payment with 5% down payment.

Acceptable loan purpose

Secondary homes (Type A) available for purchase, purchase plus, and refinance
Vacation homes (Type B) available for purchase and purchase plus only
Program does not provide for the purchase of investment, rental pool or timeshare properties; therefore, incidental rental income will not be used for qualification purposes.

Loan-to-value ratio limits

Type A properties: 95% LTV (Purchase) and 85% LTV (Refinance)
Type B properties: 90% LTV (Purchase)

Max Loan Amounts

Type A - Maximum loan amount: Metro Toronto, Metro Vancouver and Metro Calgary - $700,000; rest of Canada - $600,000
Type B - Maximum loan amount: $350,000 (exceptions will be considered on a case by case basis)

Eligible properties (Refer to the Property Type Schedule)

Type A Properties (Secondary Homes):

Property characteristics must comply with the Genworth First Mortgage Owner Occupancy Program
Up to two units Maximum
Available for purchase and refinance

Type B Properties (Vacation Homes):

Property characteristics same as Type A properties except for the following;
Property need not be winterized
May have seasonal access (road not plowed during winter)
One unit maximum
Available for purchase only

Terms

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

Amortization Options

Up to 30 Years (Type A properties)
Up to 25 Years (Type B properties)

Premium Rates

LTV Ratio	Type A properties*	Type B properties
Up to 65%	0.50%	1.25%
65.01% - 75%	0.65%	1.40%
75.01% - 80%	1.00%	1.75%
80.01% - 85%	1.75%	2.50%
85.01% - 90%	2.00%	2.75%
90.01% - 95%	2.75%	N/A
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

Portability top-up rates:

LTV Ratio	Type A properties*	Type B properties
Up to 65%	0.50%	1.25%
65.01% - 75%	2.25%	3.00%
75.01% - 80%	2.75%	3.50%
80.01% - 85%	3.50%	4.25%
85.01% - 90%	4.25%	2.75%
90.01% - 95%	4.25%	N/A
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

We require a minimum credit bureau score of 650 on all applicants for Vacation (Type B) properties. We calculate the score using our internal Genworth proprietary scoring model, which uses credit scores from both bureaus. Please note that on a case-by-case basis, we are prepared to review instances where the primary applicant meets the minimum credit score but a second applicant has no credit at all.
No prior bankruptcy or judgements.
No R3's in the last 24 months.
Gifted down payments from immediate family members are acceptable for Secondary (Type A) properties. For Vacation (Type B) properties, down payment funds must be from own resources
Maximum of one Genworth-insured vacation property per applicant.
No 3rd party guarantors for qualification purposes. We do accept spousal guarantors.
GDS/TDS Guidelines:

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

Documentation requirements

Electronic applications are processed without documentation, unless requested. If paper-based, we required the following:

Offer to purchase
Employment/income verification
Verification of down payment

Appraisal requirements

Turnaround times in this program are outside the standard purchase business levels. Property specifications

Type A property:

Foundation must be permanent and installed beyond the frost line. This includes concrete/concrete block or preserved wood foundations certified by a professional engineer or post/pier foundations on solid bedrock
Must be zoned and used as residential, rural or seasonal. We do not accept mixed uses or rental pooling
Freehold or condominium title. We do not accept co-ops or ¼ interest ownership
At minimum, property must have a kitchen, 3-piece bathroom, bedroom, and common area
Remaining economic life must be 25 years
Year-round road access on reasonable quality public roads, serviced by the local municipality. We also allow privately serviced roads, provided there is a maintenance contract in place
Property must be winterized with a permanent heat source. For example, heating can be baseboard, forced air, water radiator, radiant, coal, propane, geothermal heat pumps, or heat pumps
Good quality construction with no signs of deferred maintenance
Water source: well, municipal serviced, and cistern. Water source must be drinkable. We accept lake or river water, provided the property has its own filtration system. For example, a reverse osmosis system
There must be good market appeal in the area with no adverse influences/neighbourhood nuisances

Type B property:

All Type A property requirements apply to Type B, except for the following:

No permanent heat source is required. For example, a wood stove, fireplace, stove or heat blower is acceptable
Foundation may be floating. For example, sitting on blocks
Seasonal road use is acceptable. This means the road does not have to be plowed during the winter
Water source needn't be drinkable. However, there must be running water in the home
Property may be accessible only by boat

Portability

Mortgage default insurance in this program is portable. We calculate portability premiums according to the Genworth portability program, using the port top-up premiums that you will see below
If the property is a Type B and the original mortgage was a Type A, the difference in the insurance premiums is 0.75%. This is charged on the mortgage balance being ported, in addition to the top-up premium. You can find further details on this in our Portability Product overview.

Assumptions/Assignments

Mortgage is assumable subject to meeting lender guidelines.

Eligible Products **

Secondary Home (Type A)	Vacation Home (Type B)
Homebuyer 95 (max 2 units)	Homebuyer 95 (max 90% LTV, max 1 unit)
Purchase Plus	Purchase Plus
Cash-Out Refinance
Cashback Equity
Insured PA (residential, contractor and self-built)

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

Ineligible Products

Secondary Home (Type A)	Vacation Home (Type B)
Family Plan	Cash-Out Refinance
New to Canada	Cashback Equity
Alt. A	Family Plan
	Alt.A
	New to Canada